Offensive Strategies in Strategic Management

 

Fundamentals of Strategic Management' 2007 Ed.

Front Cover

N. Orcullo

Rex Bookstore, Inc., 2007 - Strategic planning - 302 pages

Offensive Strategies - Page 239

https://books.google.co.in/books?id=xr64aks8wCEC&pg=PA239#v=onepage&q&f=false

Offensive and Defensive Marketing: Closed-Loop Duopoly Strategies

Gary M. Erickson

Marketing Letters

Vol. 4, No. 4 (Oct., 1993), pp. 285-295 (11 pages)

https://www.jstor.org/stable/40216310?seq=1#metadata_info_tab_contents

Charting a Company’s Direction: Its Vision, Mission, Objectives, and Strategy - Summary and Important Points

Online MBA Management Theory Handbook 

Strategic Management Revision Articles - Chapter Summaries of Strickland and Thompson's Book

Crafting and Executing Strategy: Concepts and Readings

20TH EDITION

By Arthur Thompson and A. J. Strickland III and John Gamble
Copyright: 2016, Mcgraw Hill
Publication Date: January 19, 2015


The distinction between strategic vision and mission.

Company mission describes its present business scope and purpose ("who we are, what we do, and why we are here.")

The strategic vision portrays a company's future vision (What will be our achievement in what are doing now? What will be the future business scope?)  


The strategic management process consists of five interrelated and integrated stages:

Phase I. Developing a strategic vision.

Phase 2.Setting Objectives for the Strategy of the Organization

Phase 3. Crafting a Strategy.

Phase 4. Implementing and Executing the Strategy

Phase 5. Initiating Corrective Adjustments

Mission defines the company's current purpose.  A set of core values guide the pursuit of the mission. Strategic vision defines the company's future expected to be achieved in pursuit of the mission. The strategic plans are the  managerial decisions that provide direction for the company for action. The strategic vision has to envisage good performance at the company level so that associates in the company can be given good rewards. A strategic vision that promises performance and rewards motivates and inspires company personnel, aligns and guides actions throughout the organization. The mission, values and vision are to be communicated to all stakeholders. They are the  management's aspirations for the company's future.

Objectives are to be derived from  the mission and vision. The objectives are further converted into performance targets which are used  as yardsticks for measuring the company's performance. Quantified objectives (goals) need to spell out how much of what kind of performance by when. Objectives are required in many areas. They also have to be spelt out in relation to all stakeholders.  Customer acceptance of  products, so that they  go into consideration sets of potential customers in  target segments of relevant markets is an important objective. Similarly, competitive objectives, that is how an organization is positioned in relation to competitors that exist in the market is also important. Is it retaining leadership position, or challenging for leadership position or following an objective of being a follower or nicher needs to be spelt out. There are strategic (or important) objectives and financial objectives derived from strategic objectives in business plan are important. A balanced-scorecard approach provides a popular method for visualizing financial objectives and objectives in other areas.

Crafting strategy calls for strategic analysis. Strategic analysis has an external component and an internal component. Strategies created by top management are mostly top-down,  but  require two-way interaction between different types of managers. In large, diversified companies, there are four levels of strategy, each of which involves a corresponding level of management: corporate strategy (multibusiness strategy), business strategy (strategy for individual businesses that compete in a single industry), functional-area strategies within each business (e.g., marketing, R&D, logistics), and operating strategies (for key operating units, such as manufacturing plants). Thus, strategy making is an inclusive, collaborative activity involving not only senior company executives but also the heads of major business divisions, functional-area managers, and operating managers on the frontlines. The larger and more diverse the operations of an enterprise, the more points of strategic initiative it has and the more levels of management that play a significant strategy-making role.

Managing the execution of strategy is an operations-oriented activity in both marketing and sales and product related departments aimed at shaping the performance of business activities in a strategy-supportive manner. Management's handling of the strategy implementation process can be considered successful if things go efficiently, and the company meets or beats its strategic and financial performance targets,

As a part of strategy execution, developments in the external environment and internal environment are to be monitored, company performance is to be monitored, and corrective adjustments are to be done in light of actual experience, changing conditions, new ideas, and new opportunities.

The sum of a company's strategic vision and mission, objectives, and strategy constitutes a strategic plan for coping with industry conditions, outcompeting rivals, meeting objectives, and making progress toward the strategic vision. A company with an unwavering commitment to execute its strategic plan is said to have strategic intent.

Boards of directors have to play a vigilant role in overseeing management's handling of a company's strategy-making, strategy executing process. This consists of  four important activities: (1) Critically appraise the company's strategic plan and strategy execution, (2) evaluate the caliber of senior executives' strategic leadership skills, (3) institute a compensation plan for top executives that rewards them for actions and results that serve stakeholder interests— especially those of shareholders, and (4) ensure that the company issues accurate financial reports and has adequate financial controls. Board of directors use financial reports to assess the performance of top management of the company and hence they have to ensure that the financial accounts are properly maintained and financial statement are made to report the performance accurately.

Board also has the responsibility to verify whether a large number of managers were involved in strategy making, whether they agree with the strategy finalized. It is also important the proposed strategy is communicated to much larger number of employees and their opinion is solicited. There may occasions in an organization's life that majority does not accept the strategy but top management is convinced of it and goes ahead. But very quickly they have to gain acceptance by showing results. In this situation, top management has to put in lot of work to make the strategy success. But if strategy is questioned by a large section of the organization for long period of time, it is bound to fail and organization is likely to collapse. Many organizations collapse due to this non-acceptance of the strategy by the ordinary employees of the organization.

Phase 2.Setting Objectives for the Strategy of the Organization

Objectives are to be derived from  the mission and vision. The objectives are further converted into performance targets which are used  as yardsticks for measuring the company's performance. Quantified objectives (goals) need to spell out how much of what kind of performance by when. Objectives are required in many areas. They also have to be spelt out in relation to all stakeholders.  Customer acceptance of  products, so that they  go into consideration sets of potential customers in  target segments of relevant markets is an important objective. Similarly, competitive objectives, that is how an organization is positioned in relation to competitors that exist in the market is also important. Is it retaining leadership position, or challenging for leadership position or following an objective of being a follower or nicher needs to be spelt out. 

There are strategic (or important) objectives and financial objectives derived from strategic objectives in business plan are important. A balanced-scorecard approach provides a popular method for visualizing financial objectives and objectives in other areas.

Illustrative Strategic Objectives

Increasing market share.

Achieving lower cost than some specific competitors (overall cost leadership can also be the objective)

Achieving product performance superiority

Achieving product quality superiority

Achieving customer service superiority

Increasing sales of new products

Achieving technological breakthroughs and superiority

Increasing the brand strength

Increasing distribution capabilities

Getting some products into the market as a first mover.

Updated 16.10.2021 10 October 2021,  31 August 2021,  1 July 2020, 27 August 2016. 

Defensive Strategies in Strategic Management

 

Defensive Strategies in Strategic Management Small Business

By Jeremy Bradley, January 25, 2019

https://smallbusiness.chron.com/defensive-strategies-strategic-management-60016.html

Karakaya, F. and Yannopoulos, P. (2010), "Defensive strategy framework in global markets: A mental models approach", European Journal of Marketing, Vol. 44 No. 7/8, pp. 1077-1100. https://doi.org/10.1108/03090561011047535

https://www.emerald.com/insight/content/doi/10.1108/03090561011047535/full/html

A Prelaunch Diffusion Model for Evaluating Market Defense Strategies

John H. Roberts, Charles J. Nelson, Pamela D. Morrison

Published 2005

Economics

Marketing Science

This paper describes the development and application of a marketing model to help set an incumbent's defensive marketing strategy prior to a new competitor's launch. The paper uses probability flow models to provide a framework to generate forecasts and assess the determinants of share loss. We develop models at two levels of complexity to give both simple, robust forecasts and more detailed diagnostic analysis of the effect of marketing actions. Continued use of the defender depends on both service factors and price. The rate at which share loss eventuates is negatively related to the defender's perceived responsiveness, saving money being the only reason to switch, and risk aversion.

Prelaunch model forecasts, validated six months after launch using both aggregate monthly sales data and detailed tracking surveys, are shown to closely follow the actual evolution of the market. The paper provides a closed-form multistate model of the new entrant's diffusion, a methodology for the prelaunch calibration of dynamic models in practice, and insights into defensive strategies for existing companies facing new entrants.

 https://www.semanticscholar.org/paper/A-Prelaunch-Diffusion-Model-for-Evaluating-Market-Roberts-Nelson/584503e8b9998fd9703fa32e0ba0358ee8ecf267

Incumbent Defense Strategies Against New Product Entry Incumbent Defense Strategies Against New Product Entry 

Hubert Gatignon 

INSEAD 

Thomas S. Robertson 

University of Pennsylvania 

Adam J. Fein 

University of Pennsylvania

Wharton Faculty Research, 5-1997

https://repository.upenn.edu/cgi/viewcontent.cgi?article=1224&context=mgmt_papers

Strategic Management and Internet Strategies

 

Effect of Internet of Things on Business Strategy: An Organizational Capability

Perspective

Wilson W. H. Weng

EasyChair preprints are intended for rapid

dissemination of research results and are

integrated with the rest of EasyChair.

February 6, 2020

https://easychair.org/publications/preprint_download/98KF

THE STRATEGIC MANAGEMENT PROCESS IN E-BUSINESS

by: Louise Cote, Vincent Sabourin, Michel Vézina, Vincent Sabourin, Michel Vézina

Issues: May / June 2005. 

https://iveybusinessjournal.com/publication/the-strategic-management-process-in-e-business/

The strategic management of operations in e-business

David Barnes,Matthew Hinton &Suzanne Mieczkowska

Production Planning & Control 

The Management of Operations

Volume 15, 2004 - Issue 5

Pages 484-494 

https://www.tandfonline.com/doi/abs/10.1080/09537280410001714260?journalCode=tppc20

Marketing strategy and the internet: An organizing framework

P. Rajan Varadarajan & Manjit S. Yadav 

Journal of the Academy of Marketing Science volume 30, pages296–312 (2002)

https://link.springer.com/article/10.1177/009207002236907

Creating Internet Strategies for Competitive Advantage

Sep 28, 2000

https://knowledge.wharton.upenn.edu/article/creating-internet-strategies-for-competitive-advantage/

Strategic Management" and Functional Strategies - Recent Research - Papers and Articles

 

Agwu, M.E. & Onwuegbuzie H.(2017) Strategic importance of functional level strategies as effective tools for the achievement of organizational goal.   Archives of Business Research, 5(12), 338-348.

Present business environment is characterized by high levels of competition,

dynamism and technological sophistication. This is especially challenging to

organizational managers since they have to design and implement strategies that can

achieve and sustain competitive advantages. Consequently, the topic functional level

strategy plays a pivotal role as organizations aim at gaining industry leadership. This

study set out to investigate functional level strategy as a tool for achieving

organizational goals. Gaining insight from existing literature and theoretical models

four hypothesis were developed and investigated through the survey of the strategic

business units of selected financial organizations. Copies of well-structured

questionnaire were administered. Findings revealed that there is a relationship

between marketing strategy and customer satisfactions, the price of a product and

consumer purchasing such product. It also indicated that effective productivity

facilitation of the firm resources help expand the firm. The authors recommends that in

order to be more competitive, organizational managers must be strategically aware of

how effective control of the various functional departments in the organization help

organization to be aware of customer needs and offer unique products and services

that satisfy such needs.

https://journals.scholarpublishing.org/index.php/ABR/article/download/4012/2453/10501

Industry Forces, Competitive and Functional Strategies and Organizational Performance: Evidence from Restaurants in Istanbul, Turkey☆

GültekinAltuntaşaFatihSemerciözaAslıMertbÇağlarPehlivanc

Procedia - Social and Behavioral Sciences

Volume 150, 15 September 2014, Pages 300-309

Each of industry forces, competitive and functional strategies and organizational performance has been subject to so many studies presented in literature. However, there is a lack of combination of all and consensus on the role of each in restaurant businesses. Thus, this study examines the relationships among industry forces, competitive and functional strategies and organizational performance within the context of “well-known branded” restaurants in Turkish hospitality industry. The study employs a questionnaire that evaluates the attitudes of restaurants of those themes in Istanbul, Turkey without any sampling procedure. Results indicate that competitive strategy of cost leadership is significantly related to bargaining power of suppliers. Functional strategy regarding the brand image relates significantly to the competitive strategy of differentiation. Organizational performance is in a significant relation with functional strategies of human resources and information technologies.

https://www.sciencedirect.com/science/article/pii/S1877042814051155/

Strategic Management for Competitive Advantage

by Frederick W. Gluck, Stephen P. Kaufman, and A. Steven Walleck

From the Magazine (July 1980)

For the better part of a decade, strategy has been a business buzzword. Top executives ponder strategic objectives and missions. Managers down the line rough out product/market strategies. Functional chiefs lay out “strategies” for everything from R&D to raw-materials sourcing and distributor relations. Mere planning has lost its glamor; the planners have all turned into strategists.

https://hbr.org/1980/07/strategic-management-for-competitive-advantage

First Mover Strategy - Recent Research - Papers and Articles

 

https://www.linkedin.com/pulse/first-mover-advantages-mads-vangkilde/

Beyond first or late mover advantages: timed mover advantage 

Authors: Xie, Frank Tian ; Donthu, Navee ; Johnston, Wesley J. ; 

Source: The Journal of Business and Industrial Marketing, Volume 36, Number 7, 2020, pp. 1163-1175(13)

https://www.ingentaconnect.com/content/mcb/080/2020/00000036/00000007/art00007

https://www.emerald.com/insight/content/doi/10.1108/JBIM-11-2018-0334/full/html

First-Mover Advantage: A Synthesis, Conceptual Framework, and Research Propositions

Kerin, Roger A; Varadarajan, P Rajan; Peterson, Robert A. Journal of Marketing; New York Vol. 56, Iss. 4,  (Oct 1, 1992): 33.

https://www.proquest.com/openview/6b58bc268bb23ea45dd0b832fea8ee81/1

Strategy Execution - Best Practices

What Is Strategy Execution?

By: Ed Barrows
http://www.amanet.org/training/articles/What-Is-Strategy-Execution.aspx

Execute strategy through strategic projects

Identify strategy projects.
The first step in improving project-oriented strategy execution is to capture and organize all strategy projects

Resource strategy projects.
Projects that directly impact the strategy should be resourced.

Manage projects.
Organizations must develop a capability in project management if they are to execute strategy effectively.   The full complement of strategy projects  should be coordinated and controlled by a central strategy project office or officer with the responsibility for monitoring both progress and performance.

Communicate strategy.
It is difficult to execute strategy when the strategy itself isn’t well understood, or performance relative to it is not communicated.  Leaders must communicate their strategy to the workforce in a way that will help them understand not only what needs to be done, but why.

Align individual roles.
Senior leaders have to ensure that roles are modified so that employees at all levels see their contribution to the strategy success and can articulate and evaluate their personal roles toward achievement of specific strategic goals.  This is perhaps one of the most critical aspects of the execution process.

Reward performance.
In strategy execution, as in any other area of management, what gets measured gets done.  Taking this one step further, what get measured and rewarded gets done faster.  After explaining the strategy and aligning the workforce to it, senior managers institute the incentives that flow from the success of strategic endeavors or projects,  that drive behaviors consistent with the strategy.


Research on the strategy-execution gap
http://www.strategyand.pwc.com/cds/the_concept/research-strategy-execution-gap

The Secrets to Successful Strategy Execution

Gary L. Neilson, Booz & Company, Karla L. Martin, Booz & Company, Elizabeth Powers, Booz & Company

June 2008, HBR

In our work helping more than 250 companies learn to execute more effectively, 

we’ve identified four fundamental building blocks executives can use to influence those actions—

clarifying decision rights, designing information flows, aligning motivators, and making changes to structure. 

(For simplicity’s sake we refer to them as decision rights, information, motivators, and structure.)

Ensuring that people truly understand what they are responsible for and who makes which decisions. Clarify what decisions are already made and what decisions are to be taken by them.

Give them the information they need to fulfill their responsibilities. Whatever information is collected by the strategy team have to be shared with execution persons. They should not be forced to search once again and fail to identify more relevant information.

Then develop motivators.  Try to align personal goals and department goals with strategic goals.

Last assess the structural changes needed. The reporting relationships and job bundles may need to be changed for effective implementation of strategy.

 

The Strategy Execution System

Bob Kaplan

12 May 2015

Harvard Business School Executive Education

https://www.youtube.com/watch?v=RGocuYM3nqY

Developing a Strategy for Execution

26 Mar 2019

MITSMR

https://www.youtube.com/watch?v=-apRaC7NrHE

First book by Chandler in 1962

Closing the Gap Between Strategy and Execution

1 Jun 2018

MIT Sloan CIO Symposium Videos

Moderator:

Paul Michelman, Editor in Chief, MIT Sloan Management Review (@pmichelman)

Speakers:

Anthony Christie, SF ‘98, Chief Operating Officer, Trace3 (@christieontech)

Cathy Horst Forsyth, Founder and Managing Partner, Strongbow Consulting Group

Mike Macrie, Senior Vice President & Chief Information Officer, Land O’Lakes, Inc. (@mwmacrie)

Irving Wladawsky-Berger, Fellow, MIT Initiative on the Digital Economy (#IrvingWB)

In most organizations, strategy and execution are managed almost entirely separately. High-level strategy is set by a small group of executives; the implementation of that strategy is then delegated into the hands of a much larger and more heterogeneous group of functional managers and their far-flung teams. What happens? Those words that looked like a sure-fire recipe for success become mutated by the demands of day-to-day operations and the individual agendas of those who lead them. Digital technologies can exacerbate this problem as much as help address it. Is there a better way to develop strategy? Is there a more effective means of connecting strategic priorities to the realities of execution? The members of this panel say emphatically, “yes.”

https://www.youtube.com/watch?v=cal2QpiZEDE

Updated  8.10.2021,  6 August 2017, 30 October 2016