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Copy of SM - S3 - Strategic Thinking
SM: Strategic Thinking
Are you Strategic Thinker??
thinking?
Thinking
- experiential (task)
- insightful (problem solving)
- incessant (verbose)
Strategic thinking is intersection of
------------------
1. cognitive psychology
2. systems theory
3. Game theory
Title
ability
it is an ability to see patterns (algorithms) and predict the future, AND plan-implement-evaluate
Howard Gardner
Gardner
- The Disciplined Mind
- The Synthesizing Mind
- The Respectful Mind
- The Creating Mind
- The Ethical Mind
imagining solutions
imagine
- imagination
- intuition
- insight
Title
(1) imagining a future world and
(2) taking a sequence of short-term tactical actions to achieve it.
It requires both an idealism (to imagine a better world) and a realism (to acquire the resources, skills, and organization to get there).
non-linear
1. Open questions – These can’t be answered with a “yes” or “no.” Open questions probe on what, how, and why.
2. Neutral questions – The queries avoid adding value statements and judgments, which distract and bias the respondent.
3. Lean questions – As the name suggests, these are brief and conceptually simple. Lean questions keep the respondent on point and don’t allow them to pick and choose what they want to answer.
non-linear
soap that does not melt
examples
tank bigger
tank
solve
Are you a strategic Thinker ?
Strategic Thinking
What is common about all these statements ?
Common Statements
- “Our strategy is to be the low-cost provider.”
- “We’re pursuing a global strategy.”
- “The company’s strategy is to integrate a set of regional acquisitions.”
- “Our strategy is to provide unrivaled customer service.”
- “Our strategic intent is to always be the first mover.”
- “Our strategy is to move from defense to industrial applications.
Strategy – Strategic
OVERUSED AND MIS-UNDERSTOOD
Terms
Are you Strategic?
When the question is posed, it’s usually answered by the following people in the following ways:
Senior executives confidently reply "Yes"
Are you Strategic?
Mid-level managers squirm a bit with some saying “yes” and others “no”, depending on who else is in the room
Entry-level managers respond “no” so as not to be seen as overconfident by upper management
ST words
What words come to your mind when we say ‘Strategic Thinking’??
More....
Difference between Strategic Thinking and Strategic Planning
Strategic Thinking and Strategic Planning
“… strategic planning is analytical and convergent, whereas strategic thinking is synthetic and divergent.”
Strategic Thinking
Strategic Thinking is a higher level approach to issue identification and resolution. It enables a concurrent view of the start line, the goal line, and all the relevant features in between, and at the same time.
It's like looking at an aerial photograph, or down onto a tabletop model of a piece of terrain that we must navigate. We are able to see the 'big picture
Strategic Thinking
Venn diagram
Strategic Thinking
Mintzberg describes strategic thinking as a distinct way of thinking that utilizes intuition and creativity with the outcome being “an integrated perspective of the enterprise.”
Mintzberg
ST
Strategic thinking is thinking that contributes to broad, general, overarching concepts that focus the future direction of an organization based on anticipated environmental conditions
Three disciplines of Strategic Thinking
3 disciplines of ST
What limits our Strategic Thinking
- Paradigms
- Culture
- Lack of Training
- Too Busy
- Past Success
- Killer Phrases
Limitations
Paradigms - Once upon a time
Paradigms
Killer Phrases
Killer Phrases
Elements of Business Strategy
- Arenas: where will we be active?
- Vehicles: how will we get there?
- Differentiators: how will we win in the marketplace?
- Staging: what will be our speed and sequence of moves?
- Economic logic: how will we obtain our returns?
Diagram
eg: IKEA's Strategy
Testing the Quality of Strategy
Does your strategy fit with what’s going on in the environment?
– Is there healthy profit potential where you’re headed?
– Does your strategy align with the key success factors of your chosen environment?
Testing the Quality of Strategy
Testing the Quality of Strategy
2
Does your strategy exploit your key resources?
– With your particular mix of resources, does this strategy give you a good head start on competitors?
– Can you pursue this strategy more economically than competitors?
Testing the Quality of Strategy
3
Will your envisioned differentiators be sustainable?
– Will competitors have difficulty matching you?
– If not, does your strategy explicitly include a ceaseless regimen of innovation and opportunity creation?
Testing the Quality of Strategy
4
Are the elements of your strategy internally consistent?
– Have you made choices of arenas, vehicles, differentiators, and staging, and economic logic?
– Do they all fit and mutually reinforce each other?
Testing the Quality of Strategy
5
Do you have enough resources to pursue this strategy?
– Do you have the money, managerial time and talent, and other capabilities to do all you envision? Are you sure you’re not spreading your resources too thinly, only to be left with a collection of feeble positions?
Testing the Quality of Strategy
6
Is your strategy implementable?
– Will your key constituencies allow you to pursue this strategy?
Can your organization make it through the transition?
Are you and your management team able and willing to lead the required changes?
Apple's
Strategy
Apple's Strategy
History
• Steve Jobs was born on 1955 where since childhood he liked to tinker with electronics
• Got a summer internship after graduating high school in 1972 due to impressive performance on electronics.
• As most people have heard, Apple really started in the basement or garage where the two raised funds and worked on selling items in order to survive while they were completing the computer, and forming their Apple Incorporation, which received its name from a summer job that Jobs had picking apples.
Formation
Phone
Logo
Steve Job’s vision for Apple Computer was to sell to everyone, not just to computer engineers.
He turned to some friends for advice about how to do that. Apple was going to need a catchy logo.
The Apple logo was made by Rob Wayne, a co-founder of Apple Computer In 1977, Jobs had Rob Janoff design the new logo which was an apple shape with a bite out of it and the colour in a different order. The word was a reference to the computer term "byte", meaning knowledge.
In 1997, the logo changed again to a solid colour.
Business Plan
The 30-page Preliminary Macintosh Business Plan, released internally within Apple Computer in 1982, describes the market position the Apple Macintosh could fill and the plans they envisaged for themselves.
The business plan consists of :
- Apple Product Overview
- Macintosh Markets & Software Ranking
- Macintosh Organisation, staffing and budgets
- Open Issues
Business Plan
Strategic Terms
• Control the uncontrollable
• Forget the low end
• Use partnership as a last resort
• Obsess over the little things
Strategic Terms
Apple's 5 Business level Strategies
5 Business level strategies
Differentiation Strategy
Differentiation Strategy
Apple has successfully used the product differentiation strategy to separate their product in the market from other competitors‟ products, starting with their mackintosh computers to their music player “IPod”, and smart phones “IPhone”.
- Unique Features and characteristics
- Superior Quality
- Innovation
- Premium Price
Strategic Outsourcing
Apple identified its core competency and was quick to outsource the production to the cheaper and more efficient Asia-pacific market.
They have primarily focused on R&D which helped them bring disruptive innovation into the market with their products.
World’s largest electronics contract manufacturer Foxconn in China assembles 85% of Apple’s products.
Strategic Outsourcing
Apple's Supply Chain
IT research firm Gartner ranked Apple’s supply chain last year as the best supply chain in the world for the third time in a row.
Supply Chain
Pricing Strategy
Apple uses a premium pricing strategy. In this component of the marketing mix, the emphasis is on how prices represent the company and its products, while meeting consumer expectations.
In Apple's case, the premium pricing strategy involves relatively high prices. This pricing strategy helps maintain the high-end image of the company and its products.
Retailing Strategy
Retailing
Strategy
Apple does not just sell products in its stores, rather it provides a first class retail experience that delights shoppers and visitors alike.
Apple empowers its store’s visitors by letting them touch everything, try anything, and stay as long as they like.
Innovation Strategy
Efforts aimed at integrating focused know-how via staffing and methodologies - Aim to institutionalize development of new products/services.
Innovation Strategy
Articles Quiz
1. ______________ is creative; an entrepreneurial insight into a company, its industry, and its environment into the company.
Strategic thinking
Strategist
2. A __________ is always looking for opportunities to win at low or, better yet, no cost.
3. Strategic thinking questions everyone’s _____________ assumptions.
Unquestioned
Quiz
4. One way to counter undesirable groupthink tendencies in teams is to appoint a ________
Strategic dissenter
(or)
devil’s advocate
Case Study - Cycles Devinci: Develop an Asia-Pacific Internationalization Strategy?
Case
Brodeur believed the Asia-Pacific region was a hugely promising market for Devinci. Brodeur wasn’t sure how to integrate all these details in his proposal, but he knew management would have lots of questions.
Brodeur believed that entering the Asia-Pacific market would serve Devinci’s interests better than would expanding into the United States or Europe. And it would give him a chance to make his mark.
He just had to figure out which country to target and convince Pedneault
and other members of the management team to conduct a more detailed analysis of those markets.