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SCM: What is Strategy?

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Ehsan Sabet

on 5 October 2016

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Transcript of SCM: What is Strategy?

Nottingham Business School
Nottingham Trent University
+44 (0)115 - 8484804

Global Supply Chain Strategy:

What is Strategy

What is

Different Schools
of Strategy

Supply Chain

The Economist
“Nobody really knows what strategy is” !!!
“Strategy is the direction and
of an organization over the
long term
, which achieves advantage in a
changing environment
through its configuration of
and competences with the aim of fulfilling
stakeholder expectations
.” (Johnson, 2008)
Can organisations set a strategy,
which works for the next 5 years?
Two complementary approach to strategy
Comes from Environment, personnel, realized deliberate strategies, ...
Comes from managers
Not planned
Strategies may be…
Michael Eugene Porter (born May 23, 1947) is the most cited author in Business Economics.

He is now a Professor of competitive strategy at Harvard Business School.
He is recognised as father of modern strategy field
He has written 18 books in strategy field.
His ideas and theories are thought in all business schools of the world.
Strategic decisions are those decisions which are:

Larger impact
on the organization

Define the
of the organization relative to its business environment and competitors

Move the organization closer to its
long-term goals
What are the Strategic Decisions?
Click to open the book
in Action
Strategy Model
Integration Level
Supply Chain network

R&D Strategy
HR Strategy
Logistics / Inventory strategy
Capacity Technology
Capacity Location
Investment Level
Strategic Operations

Strategic Decisions
and Positioning

Strategic Groups
The Macro-Environment
Industry (or Sector)
Industry (or Sector)
Strategic Groups
Low Cost Leaders
The UK Macro-Environment
Supermarket Sector
Strategic Groups
Strategic Groups
Generic Strategy (Porter, 1980)
Outfit Industry
Niche Market (Focused)
Strategic Group A
Dynamic Strategy
Strategic Group 1
The Macro-Environment
Sector A
Sector B
Strategic Group 3
Strategic Group 2
- Understanding the Market configurations
- Understanding needs for Resources and capabilities
How to choose a sector and a strategic group?
Market Based
Resource Based
Tangible Resources
Intangible Resources
Resource-Based Approach
Market-Based Approach
Value Chain
Customer of my customer
My Customer
My Company
My Company
Thank you... !
Polling time:
Dr Ehsan Sabet
aim for
Where is ZARA?!!
Why is it important to know exactly where our position is?
To Know who exactly are our customers are and then what suppliers/resources we need
Read Chapter two of this book:
Here is a link to the e-book:


You need to sign in to your library account first.
Adapted from Kapalan and Norton (1996)
Looking backwards to understand our current resource & position
Looking Forward to how can we develop through growth and learning - Looking to the future - (competing in future - Hamel and Prahalad approach)
Looking inside to understand the business Processes we need to excel at
Looking outside to determine if we are working to satisfy our customers
How long ?!
CEO of SESCO, Brian Fox, an outfit designer in London, who has been in the home market for over 15 years, is interested to explore the ever growing market for British design in US. He says:
Is this a good strategy?
'My strategy is to expand my current business to take some market share in this fast growing market'
Therefore, this statement is not a 'Strategy', as it doesn't say anything about 'Mean' (Resources); or ways (plan).
It is at its best a vague objective
"my strategy is to exploit my Italian designer, my South American supplier and a third party American distributor to launch my high-end designs to high street boutiques in New York city during the next 5 years, in order to hit 2 million US$ turnover target."
Full transcript