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Questions and Answers
What is a key consideration regarding strategic management practices among companies?
What is a key consideration regarding strategic management practices among companies?
What does Herbert Simon's concept of 'bounded rationality' imply for managers?
What does Herbert Simon's concept of 'bounded rationality' imply for managers?
What challenge is associated with measuring the benefits of a planning process in companies?
What challenge is associated with measuring the benefits of a planning process in companies?
Why is it unrealistic to rely solely on rational decision-making models in management?
Why is it unrealistic to rely solely on rational decision-making models in management?
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Which statement reflects the perception of planning within companies?
Which statement reflects the perception of planning within companies?
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What does the orthodox approach to strategy emphasize?
What does the orthodox approach to strategy emphasize?
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What conclusion can be drawn about strategic management decisions made by organizations?
What conclusion can be drawn about strategic management decisions made by organizations?
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What is a consequence of the constantly changing organizations and environments?
What is a consequence of the constantly changing organizations and environments?
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What does the Society for Long Range Planning study reveal about companies' approach to planning?
What does the Society for Long Range Planning study reveal about companies' approach to planning?
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How do psychological limitations affect managerial decision-making?
How do psychological limitations affect managerial decision-making?
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What do stakeholders like banks and investors expect from strategic management approaches?
What do stakeholders like banks and investors expect from strategic management approaches?
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Which of the following best describes the nature of strategy development?
Which of the following best describes the nature of strategy development?
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What is a fundamental limitation managers face when making long-term decisions?
What is a fundamental limitation managers face when making long-term decisions?
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What is a key implication of the experience lens in strategy development?
What is a key implication of the experience lens in strategy development?
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How can cultural influences affect managers' responses to situations?
How can cultural influences affect managers' responses to situations?
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What risk does strategic drift pose to an organization?
What risk does strategic drift pose to an organization?
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Why might professionals within the same organizational unit adhere to familiar strategies?
Why might professionals within the same organizational unit adhere to familiar strategies?
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What does the phrase 'well said effect' refer to in strategy development?
What does the phrase 'well said effect' refer to in strategy development?
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How do managerial assumptions differ between cultures?
How do managerial assumptions differ between cultures?
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Why do managers emphasize rationality in their arguments about strategy?
Why do managers emphasize rationality in their arguments about strategy?
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What denotes a 'taken-for-granted' aspect of culture in an organization?
What denotes a 'taken-for-granted' aspect of culture in an organization?
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In what context is strategy typically discussed according to the content?
In what context is strategy typically discussed according to the content?
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What characterizes the management of strategy according to the discussed approach?
What characterizes the management of strategy according to the discussed approach?
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How can managers utilize discourse to support their strategies?
How can managers utilize discourse to support their strategies?
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What commonality exists among managers of differing professional backgrounds?
What commonality exists among managers of differing professional backgrounds?
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How does discourse influence a manager's identity in relation to their peers?
How does discourse influence a manager's identity in relation to their peers?
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What role does previous experience play in a manager's discourse about strategy?
What role does previous experience play in a manager's discourse about strategy?
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What can be inferred about the concept of 'heroic' leaders in relation to strategy?
What can be inferred about the concept of 'heroic' leaders in relation to strategy?
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In what ways might top managers unconsciously use strategy discourse?
In what ways might top managers unconsciously use strategy discourse?
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What percentage of companies undertook formal organization planning?
What percentage of companies undertook formal organization planning?
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What is the main reason companies decide to change to a system of corporate planning?
What is the main reason companies decide to change to a system of corporate planning?
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According to the Denning/Lehr survey, which type of companies are most likely to benefit from corporate planning?
According to the Denning/Lehr survey, which type of companies are most likely to benefit from corporate planning?
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Which concept distinguishes strategy from tactics in military and business contexts?
Which concept distinguishes strategy from tactics in military and business contexts?
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What was the perceived need identified for corporate planning?
What was the perceived need identified for corporate planning?
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What percentage of companies engaged in diversification planning?
What percentage of companies engaged in diversification planning?
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Which of the following statements is true about the concept of strategy?
Which of the following statements is true about the concept of strategy?
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Who is attributed with the first treatise on strategy?
Who is attributed with the first treatise on strategy?
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What criticism does Henry Mintzberg have regarding conventional strategic management?
What criticism does Henry Mintzberg have regarding conventional strategic management?
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What approach did Honda actually use to enter the US motorcycle market in the 1960s?
What approach did Honda actually use to enter the US motorcycle market in the 1960s?
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Which of the following is a characteristic of Mintzberg's emergent strategy?
Which of the following is a characteristic of Mintzberg's emergent strategy?
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In the process of strategy design, which activity is emphasized as part of a top-down approach?
In the process of strategy design, which activity is emphasized as part of a top-down approach?
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How do Mintzberg's concepts differentiate design and emergence in strategy?
How do Mintzberg's concepts differentiate design and emergence in strategy?
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What does the research by Nonaka and Takeuchi suggest about strategy enactment in organizations?
What does the research by Nonaka and Takeuchi suggest about strategy enactment in organizations?
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What role does experience play in the strategy-making process according to Mintzberg?
What role does experience play in the strategy-making process according to Mintzberg?
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Why might conventional strategic management be considered limited according to the discussed concepts?
Why might conventional strategic management be considered limited according to the discussed concepts?
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What is a defining characteristic of strategic decisions?
What is a defining characteristic of strategic decisions?
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According to Mintzberg, what describes the actual strategy that is implemented?
According to Mintzberg, what describes the actual strategy that is implemented?
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What percentage of intended strategy does Mintzberg suggest is typically realized?
What percentage of intended strategy does Mintzberg suggest is typically realized?
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What term is used to describe strategy that emerges from the ongoing interpretation and adaptation of decision-making processes?
What term is used to describe strategy that emerges from the ongoing interpretation and adaptation of decision-making processes?
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Which of the following aspects is NOT a characteristic of strategic decisions?
Which of the following aspects is NOT a characteristic of strategic decisions?
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Which of the following is a method managers can use to promote new ideas and innovation?
Which of the following is a method managers can use to promote new ideas and innovation?
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What is the relationship between order and innovation according to the content?
What is the relationship between order and innovation according to the content?
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How much of their time do managers spend communicating with others?
How much of their time do managers spend communicating with others?
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What role does top management play in strategy development?
What role does top management play in strategy development?
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Which element is NOT essential for fostering innovation and creativity?
Which element is NOT essential for fostering innovation and creativity?
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What is a significant component of strategy management?
What is a significant component of strategy management?
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Which of the following best reflects how managers use strategy language?
Which of the following best reflects how managers use strategy language?
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Which of the following practices fosters an environment conducive to new ideas?
Which of the following practices fosters an environment conducive to new ideas?
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What is the primary responsibility of top management in an organization?
What is the primary responsibility of top management in an organization?
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How do organizations ensure that strategies can be effectively put into action?
How do organizations ensure that strategies can be effectively put into action?
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What assumption about organizations suggests they are hierarchical in nature?
What assumption about organizations suggests they are hierarchical in nature?
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What is a significant aspect of how organizations deal with complexity and uncertainty?
What is a significant aspect of how organizations deal with complexity and uncertainty?
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What underlying concept is crucial for top management to exercise control over an organization?
What underlying concept is crucial for top management to exercise control over an organization?
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What characterizes the rational system view of organizations?
What characterizes the rational system view of organizations?
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In the context of strategic management, what does stakeholder expectations refer to?
In the context of strategic management, what does stakeholder expectations refer to?
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What misconception might arise about the nature of organizations as systems?
What misconception might arise about the nature of organizations as systems?
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What is a characteristic of the strategy as design approach?
What is a characteristic of the strategy as design approach?
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How does the strategy as experience lens influence organizational strategy?
How does the strategy as experience lens influence organizational strategy?
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What does the strategy as variety lens support in organizations?
What does the strategy as variety lens support in organizations?
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What role does improvisation play in strategy development according to the strategy as design view?
What role does improvisation play in strategy development according to the strategy as design view?
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Which of the following best describes the outcome of interactions between different expectations in strategy as experience?
Which of the following best describes the outcome of interactions between different expectations in strategy as experience?
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In which context should strategies be looked for according to the strategy as variety lens?
In which context should strategies be looked for according to the strategy as variety lens?
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What assumption does the strategy as design view generally make about the decision-making process?
What assumption does the strategy as design view generally make about the decision-making process?
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Which aspect is underplayed in the strategy as design perspective?
Which aspect is underplayed in the strategy as design perspective?
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What percentage of companies engaged in divestment planning?
What percentage of companies engaged in divestment planning?
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What is the primary characteristic of complex, high-capital technological companies regarding corporate planning?
What is the primary characteristic of complex, high-capital technological companies regarding corporate planning?
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Which of the following best distinguishes strategy from tactics?
Which of the following best distinguishes strategy from tactics?
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What was the perception that led to the introduction of corporate planning systems?
What was the perception that led to the introduction of corporate planning systems?
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In the context of business strategy, what does the term 'strategia' refer to in Greek?
In the context of business strategy, what does the term 'strategia' refer to in Greek?
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Which activity is NOT commonly undertaken by companies in their financial planning processes?
Which activity is NOT commonly undertaken by companies in their financial planning processes?
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What percentage of companies undertook formal manpower planning?
What percentage of companies undertook formal manpower planning?
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What did Sun Tzu's 'The Art of War' signify in terms of strategic concepts?
What did Sun Tzu's 'The Art of War' signify in terms of strategic concepts?
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What criticism does Henry Mintzberg have regarding the conventional view of strategy creation?
What criticism does Henry Mintzberg have regarding the conventional view of strategy creation?
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What was a significant characteristic of Honda's strategy when entering the US market in the 1960s?
What was a significant characteristic of Honda's strategy when entering the US market in the 1960s?
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According to the discussion on strategic management, what constitutes the design aspect of strategy?
According to the discussion on strategic management, what constitutes the design aspect of strategy?
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What is highlighted as a key feature of emergent strategies?
What is highlighted as a key feature of emergent strategies?
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Which aspect of strategy is emphasized by Mintzberg regarding organizational participation?
Which aspect of strategy is emphasized by Mintzberg regarding organizational participation?
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What did the Boston Consulting Group's analysis of Honda initially emphasize about their strategy?
What did the Boston Consulting Group's analysis of Honda initially emphasize about their strategy?
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In the context of Mintzberg's strategy concepts, what is implied by the term 'strategy exists in the cognition of managers'?
In the context of Mintzberg's strategy concepts, what is implied by the term 'strategy exists in the cognition of managers'?
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What role do strategy workshops play in the formation of strategy as described in advanced strategic management?
What role do strategy workshops play in the formation of strategy as described in advanced strategic management?
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Study Notes
Advanced Strategic Management
- The course is taught by Davide Genta
- The academic year is 2023/2024
- A presentation on a painting by Murillo is included, showing 4 characters, and it's from the Kimbell Art Museum
Where Do We Find Strategy?
- Strategy is found in the minds of managers
- Strategy is articulated in speeches
- Strategy is found in written documents
- Strategy is observable in the decisions enacted
The Strategy Lenses
- Strategy as design → Development
- Encourages a large investment in planning and analysis before making decisions.
- It tends to exclude improvisation and underplay the unpredictable or political aspects of human organizations.
- It is systematic, analytical, and logical.
- Strategy as experience → The future strategy of an organization is affected by experience of managers and the organization.
- Strategy as variety → Strategy emerges from within and around organizations as they respond to an uncertain environment with differing initiatives.
- Strategy as discourse → Managers spend most of their time talking, persuading, and negotiating.
Strategy as Design
- Managers are rational decision-makers
- They optimize economic performance
- Decision Sciences provide guidelines for decisions
- Most managers agree this is their role
How Strategic Decisions are Made
- Systematic analysis → Builds scenarios for future impacts and considers conditions for organizational operation.
- Analytic thinking → Strategy-making is a linear process.
- Strategic positioning → Matches organizational strengths with environmental changes. (SWOT)
Assumptions About Organizations
- Organizations are hierarchies → Top management sets the direction and lower levels implement.
- Organizations are rational systems
- Control systems (budgets, targets, appraisals)
- Mechanisms for strategy execution
Implications for Management
- Dealing with complexity and uncertainty
- Management power and legitimacy
- Rationality is deeply embedded in thinking and education
- Stakeholder expectations (banks, investors, employees) may value this approach
- Language of strategy→emphasis on analysis and control
Strategy as Experience
- Rational decision-making models are unrealistic
- It's not possible to acquire all information required for complete analyses
- Forecasting an uncertain future is difficult
- Limiting cost and time in analysis is an issue
- Organizations and their environments are constantly changing
- Managers have psychological limitations
- 'Bounded rationality' is the best managers can achieve
Individual Experience and Bias
- Managers make sense of the complex world by drawing on previous experience.
- Human beings create models based on experiences or cognitive models
- Making sense of situations is often efficient
- Mental models can simplify complexity
- Selective attention is important (selecting relevant info)
- Exemplars and prototypes are used (common competitors)
- Risks of relying on familiarity in scanning the environment
Bias
- Cognitive bias is inevitable in strategic thinking.
- Unrealistic to expect unbiased strategic decision-making
- Future situations tend to be interpreted through past experiences.
Collective Experience and Organizational Culture
- How people make sense of events is shaped by culture.
- Taken-for-granted assumptions, activities, and practices influence strategy.
- Assumptions about top management roles shape organizational culture
- Different cultures differ in practices, e.g., Western vs Japanese firms.
Assumptions and Behaviors Influencing Strategy
- Consistent behavior within groups
- Reliance on familiar strategies
- Differing perspectives between groups are common
- Successful strategy implementation Often includes negotiating and resolving differences
Implications of Experience
- Experiences are central to strategy development
- Strategic change and innovation are often challenging
- Beliefs and influences (religion, sports teams) Impact strategy
- Risk of strategic drift (strategy diverging from realities)
- Bargaining and negotiation play a large role
Strategy as Variety
- Innovative strategies, processes, products are explored
- Rapid change and innovation are essential
- Strategy depends on understanding the context and how uncertainty is handled by managers
- New strategy ideas emerge from diverse perspectives in the organization
- Top-down and bottom-up approaches are often combined
The Importance of Variety
- New ideas are created when variety exists in environments and organizations.
- Uniformity is not the norm
- Organizations, sectors are most innovative in rapidly changing sectors - managers frequently employ low organisational levels of employees
- Varied approaches likely lead to new ideas that contribute better outcomes
- Imperfections may also contribute to better solutions
Selection and Retention
- Variety lens and evolutionary theory do not negate managers’ deliberate actions.
- Selection can be described as blind; outcomes aren't immediately known.
- Developed strategies are the result of selection and retention processes
Processes of Selection and Retention
- Experience and culture
- Functional benefits
- Alignment
- Attraction
- Retention
Implications for Management
- Managers' communication abilities are crucial
- High discursive component in managing strategies
- Rationality, appearing rational is key to making sense in strategies
- Language is used to gain influence and power and by top management
- Discourse creates identity and influences legitimacy
Discourse as Power
- Strategy is linked to power and control
- Top management and specialists possess knowledge and wield power
- Social control exists within groups in terms of the common way they strategize
- Examples: Consultant firms, "offshoring", and "the world is flat."
Implications for Management
- Choosing appropriate language and concepts can be important for managing strategy effectively
- Strategic change requires communication of appropriate frameworks
- Strategic communications are crucial for effective strategy execution
A Summary of the Strategy Lenses
- Strategy Design: Logical process, analysis, evaluation.
- Strategy Experience: People's experience, assumptions, and habits.
- Strategy Variety: Diverse ideas from various people within and around the organization.
- Strategy Discourse: How people use language to create influence, power, and legitimacy
Do We Need Strategic Management?
- Planning is vital and can result in positive outcomes
Planning Does Pay
- Difficult to measure benefits in terms of planning
- Planning is often reactive to change
Denning/Lehr Survey (1972)
- Complex, high-capital, technological organizations are best suited for corporate planning and likely to see this as useful
A Brief History of Business Strategy
- Strategy stems from Greek's concept of generalship
- First recorded strategy is Sun Tzu's "Art of War"
- Military and business strategies have common principles. Strategic decisions are significant, use significant resources, and aren't easily reversible
From Corporate Planning to Strategic Management
- Evolution of strategic planning from budgeting to a focus on competitive advantage and responding to turbulence
The Strategy Process
- The processes are necessary to form strategic initiatives.
Design Versus Emergence: Mintzberg
- Intended strategy: Leader's or top-management intended strategy.
- Realized strategy: Implemented strategy in action. Often differs from the intended strategy.
- Emergent strategy: Strategy that emerges from decision-making of individual managers adapting to changing circumstances
Henry Mintzberg
- Critic of traditional strategic design approaches
- Strategy should evolve from daily activities and decision-making within the organization
- Emergent strategies are adaptable and reflect interaction between planning and implementation
Design Versus Emergence: Honda Case
- Honda's US entry was initially seen as an effective use of strategy, but revealed a more diverse and adaptive reality
Top-Down vs Bottom-Up Strategy
- Top-down: Designed by top management, and later adopted/refined by lower levels
- Bottom-up: Emerged from various levels within an organization
As the Business Environment Changes
- Strategy making should adapt from very specific actions to general direction-setting
- Strategy implementation is influenced by environmental factors.
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Description
This quiz covers key concepts in Advanced Strategic Management as taught by Davide Genta for the academic year 2023/2024. Explore various lenses through which strategy is viewed, including design, experience, and variety. Additionally, the course encompasses insights from a presentation related to a Murillo painting.
