This presentation introduces the evolution of strategy and management thinking since 1930s. It provides an overview of key strategy schools of thoughts and breaks them into two broad categories:
• Outside-in strategy schools
• Inside-out strategy schools
It then elaborates on the key characteristics of various strategy thinking under each strategy schools. Included in the presentation are two most valuable slides that illustrates the evolution of strategy timeline since 1920s. This is a very useful reference for beginners as well as veterans in the strategy field.
This document delves into the critical elements required for sustainable market success, emphasizing the commitment of scarce resources and the alignment of actions with strategic choices. It highlights the importance of consistency in decision-making and the need for coordinated actions across the organization. The presentation also explores the evolution of strategy through the lens of General Electric, showcasing key milestones such as decentralization, the creation of strategic business units, and the shift towards a boundaryless company model.
The analysis includes empirical studies that demonstrate the strong relationship between market share and profitability. It underscores the significance of strategic positioning as a primary driver of return, which has led to the development of various strategic matrices and models. These insights are crucial for understanding how businesses can achieve sustainable improvements in return and avoid unsustainable strategies.
Additionally, the document covers the concept of industry attractiveness and how it can be modified through strategic actions such as acquisitions and customization. It discusses the criticism of strategic planning and the role of value chain analysis in bringing the firm back into the strategy. The presentation concludes with a forward-looking perspective on competing for the future, stressing the need for innovation, venturing, and value networks in the rapidly changing business environment.
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Source: Best Practices in Strategy Development PowerPoint Slides: Evolution of Strategy PowerPoint (PPT) Presentation Slide Deck, Documents & Files
This PPT slide presents a framework that illustrates 2 key insights related to business unit strategy, particularly focusing on the relationship between market share and rate of return. The vertical axis represents the rate of return, while the horizontal axis shows relative market share on a logarithmic scale.
Three distinct strategies are depicted:
- Operational Strategies (A), which are foundational approaches aimed at lowering costs and enhancing customer value to meet target return rates.
- Sustainable Improvements in Return (B), indicating that exceeding target returns necessitates gaining market share, often through acquisitions.
- Unsustainable Milking Strategies (C), which suggest that achieving excessive returns is typically a sign of under-investment or exploitation of existing resources, thus unsustainable in the long term.
The accompanying text emphasizes that these insights have led to the concept of strategic position being recognized as a critical driver of performance. Understanding where a business stands in relation to its market share and return is crucial for making informed strategic decisions.
The slide effectively communicates that while operational strategies are essential for achieving baseline performance, a deeper understanding of market dynamics is necessary for long-term success. It highlights the importance of balancing short-term gains with sustainable practices to avoid pitfalls associated with aggressive return strategies. This framework is valuable for executives looking to refine their strategic approach and ensure alignment with market realities.
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Strategy Development Strategic Planning Consulting Frameworks Chief Strategy Officer Strategy Deployment & Execution Hoshin Kanri Consulting Training Strategy Frameworks Growth Strategy Porter's Five Forces Customer Experience Digital Transformation Business Transformation Breakout Strategy Competitive Advantage Scenario Planning Customer Segmentation Henry Mintzberg KPI Strategic Analysis
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