Causation Of The Strategy In Firms Business Essay

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This part of the introduction gives a quick view of the coursework that's been analyzed and explained on the role of business strategy, how a business strategy is developed, the role of operations strategy in the organization. Explain the relationship between business strategy and operations strategy. Describe how an operations strategy is developed. Identifies competitive priorities of the operations function Explain the strategic role of technology Defines productivity and identify productivity measures.

Recent studies in strategy and technology management provide innovation dimensions that can form the basis for integrating innovation with other competitive priorities. In particular, Benner and Tushman (2003) suggest that innovation can be classified into two dimensions: proximity to current technology trajectory; and proximity to market. An innovation's proximity to current technology trajectory is measured in terms of its proximity to existing. One key to successful strategic management is the ability to achieve fit or coherence among a set of competitive factors, both internal and external to the organization, in a manner that facilitates high performance. The strategic choice perspective (Child, 1972) argues that organizations do not simply react to their environments but dynamically interact with them via the strategic actions of top managers

Every organization dreams to be multinational enterprises (MNEs), and if it's not the global environment is forcing companies regardless of their location or primary market base, to consider the rest of the world in their competitive strategic formulation. Firms cannot isolate themselves from or ignore external factors such as economic trends, competitive situations, or technology innovation in other countries if some of their competitors are competing or are located in other countries.

With the world becoming a global village firms are faced with competition from foreign companies who have operations across geographies, in their local markets.

Differences between strategic and tactical decisions,

Identification of key areas 

Refers to the day by day tactics of how to manage things like advertising, pricing, and Operations strategy looks at the long-term issues of how to manage the resources. The more operational subject of operations management looks at the more detailed and 'shop floor' issues like designing, planning and controlling, and improving the resources which produce products and services. Operations strategy can be viewed as the effective use of production capability and technology for achieving business and corporate goals (Kim and Lee, 1993). These goals include profit, innovations, customizations, product flexibility, product reliability, quality, response, delivery reliability and after sales service (Meredith, 1992).

Handling change is an integral part of every manger's job. The success of strategic change in an organization depends on the extent to which people change their behavior. It is therefore necessarily concerned with the beliefs and assumptions that they hold and the processes in their organizational live (Johnson & Scholes, 2005). The question of what secret weapon does Marks & Spencer, .Sainsbury, Boots, and W.H.Smith have in common and why these all rank as long-term marketing leaders, famous retail brands in answer this question one has to realise that these companies made the best practice method to survive and thrive in times of economic downturn,the message these companies had in common is to make sure all energies must be applied to recognizing how to get the absolute maximum quality and productivity out of the people you have at present. The contributing strategy has to be analyzed both from the employees and the managers. Certain factors like the External forces causing change and the impact of change and its "path" to success, the effects of emotions and behaviors as they help or hinder progress must be addressed in time for better prospects in a strategic decision making on the employees perspective .addressing the situation to the managerial focus are on their key responsibilities as change progresses  ,The skills and attributes that are critical in dealing with change management ,How to deal with their own reactions to organizational change and to those of their employees and teams

These principles and the three key leadership practices of honesty, transparency and trust combine to form a new basis for a system that governs how all work is done in the organization

Application of theory

Structured analysis

Creativity of thought

Complex adaptive system -modelling capacity

Managing statergic discourse :Where does statergy happen

How can i influence statergy

Familiar Organisational themes -reference examples


There is also a need to understand the magnitude of the challenge faced in trying to effect strategic change. It can be useful to assess the extent to which strategic drift has occurred and therefore the extent to which incremental or transformational change is required. It is also helpful to identify the specific blocks to change that exist and what forces might exist to help the change process. It can then be useful to map the sorts of change that might be required (Johnson & Scholes, 2005)

The strategy implementation must identify the real issues; likely emerge in the strategy implementation process and to develop effective, targeted strategies to address them. The real issues are the underlying assumptions and beliefs which should realistically be changed. To change them, the strategies must make people feel sufficiently confident, safe and that they have at least some control over the outcomes. Getting people to change behaviour requires communications upon which they would actually act. In fact, they most frequently act based on what is done/said by the people who have a direct, immediate effect on their day-to-day activities


Global economic and demographic changes are transforming the growth and operational strategies of retailers and Fast Moving Consumer Goods (FMCG) manufacturers. Retailers' new methods of attracting customers create supply chain challenges for manufacturers.

how Supply Chain Collaboration benefits extend beyond improved efficiency and effectiveness to include helping all the supply chain members meet customer demands, grow markets, and increase competitive market share

Critical topic areas help you develop strategies and expand your knowledge

The first part discusses existing problems and barriers in brief. The second part summarizes and discusses ideas to overcome these problems and barriers. The third part gives an overview about the benefits of a customized and improved strategic planning process. The author argues that in particular progress monitoring and bundling of strategic measure to "strategic campaigns" can help organizations to focus and to improve communication.

(1) strategic analysis, (2) strategy finding and (3) strategy assessment

Literature review

FARREL and ASSOCIATES (2002) argue that most organizations see strategic planning as a separate activity from management's prime responsibilities and duties. Management focus is described as top-down and start-to-finish; commitment to strategic planning is absent. Furthermore strategic planning is described as an internal battle ground for inter-departmental conflicts; negotiations and bargaining take place to achieve "organizational peace until the next planning session"[4]. THOMMEN and ACHLEITNER (2006) describe within their strategic problem solving process that in practice the allocation of resources is more based on distribution of power rather then developed corporate strategies[5]. This critical observation is in line with the content of strategy change process research that describes those processes and negotiations as political processes. WELGE and AL LAHAM (2003) confirm this since they describe strategy as a result of a negotiation process for rare resources. ROTHSCHILD et al (2004) see blue-sky planning and strategy by spreadsheet[6] as typical problems

THOMMEN and ACHLEITNER (2006) argue that a clear concept and other factors steer and control the strategic problem solving process. They see corporate culture and corporate structure as major impact factors[7]. This is in line with RÜHLI (1991) and STRONG (2005), who describe the existence of interrelationships between strategic processes and structure, participant mix, and institutional culture[8]. MACHARZINA and WOLF (2005) make the general suggestion that organizations should tune the development of strategy content with the development of strategy process.

FARRELL and ASSOCIATES (1995) who stress that organizations' strategy analysis should include products, markets and channels of both today and tomorrow.

ROTHSCHILD et al (2004) recommend starting with the customer using a so called strategic customer research. The objective of this analysis is "to explore the UN stated priorities that customers sense but can't fully articulate"

DYE and SIBONY (2007) stress that identification and discussion of key issues should be the first step to ensure that the organization does not waste effort on less important topics the strategic issues that will have the greatest impact on future business performance"

Considering the findings from FLOYD and WOOLDRIDGE (1997) the quality of strategic decisions can be improved if middle management has the chance to contribute their knowledge to the stage of agenda setting. Hence it is recommended to establish a procedure that ensures the involvement of middle managers during the process of agenda setting

DYE and SIBONY (2007) argue that assigning and involving the right people represents an important factor for the planning process. Based on their research results they give a general description of right people: "…the most knowledgeable and influential participants, stimulating and challenging the participants' thinking Hence strategic planners from the business unit level and the corporate level as well as people who carry out the strategic moves, e.g. corporate decision makers, business unit leaders and people with expertise, should participate in strategic conversations.

PÜMPIN and GEILINGER (1988) as well as DELOITTE (2005) the following conditions represent those premises, which are essential to achieve a successful implementation of a corporate strategy

Right from the beginning of strategy development all managers should be involved to establish identification with the new strategy.

Top managers have a function as role model. Therefore they have to support the new strategy and have to express this clearly.

Since the implementation of a strategy can not only be achieved by top- and middle managers, all employees should be linked with the implementation. Employees should believe in and understand the rationale behind a strategy to ensure its success. This has to be ensured by an appropriate communication. DELOITTE confirms this and also highlights the importance of commitment: "Effectively communicating the chosen strategy to every level of the company is of paramount importance" and "The chosen strategic direction must be communicated through a process that builds commitment". Motivation and engagement play a major role.

  All corporate units have to make a contribution to strategy implementation

Content analysis

The first benefit is to ensure that all participants of the planning process (e.g. senior managers, planners, decision makers) have a solid understanding of the business, its strategy as well as the assumptions behind that strategy. This understanding enables them to identify and to respond quickly to chances and challenges as they occur in real time

The second benefit is to increase the innovativeness of the organization's strategy. A strategic planning process cannot guarantee creative insight or excellent ideas in general; however the process can increase probability that they will occur by opening up participants to new thinking and challenging assumptions

Overcoming selected problems and barriers enables the organization to consider own planning demands best and to focus on important issues of its organization, industry and environment. Hence organizations can create their customized strategic planning process, which offers the most benefits. 

Taking into account these general recommendations the next subchapters will suggest improvements on planning cycle, cultural context, strategic analysis, agenda setting, strategy finding, as well as strategy implementation and strategy execution

Management theory and practice widely accept today that businesses operate in a more and more complex, dynamic, less predictable environment


All these approaches have in common that they try to enable organizations to realize upcoming opportunities and to take strategic decisions with long-term implications within short timeframes. Decision makers face the new situation that they have to take decisions quickly, despite their importance and despite the incomplete information. The overriding corporate objectives that are documented in visions and mission statements, gain more and more importance in such situations. Corporate objectives are one of the very few constant elements left for the organization. Thus they become the guidelines against which alternative options are assessed.

Not only have the timeframes for decision-making changed; traditional patterns of thinking about decisions have become widely useless. In times of blurring boundaries between industries and organizations it takes a lot of openness for strategic options that were left out of consideration until now.


The new strategy processes described require managers, decision makers, and stakeholders to re-learn the way they think about strategy. It is possible to implement the new approaches described successfully only if the whole organization accepts them. Therefore, the communication of these new approaches has to adapt the generally accepted corporate values and objectives and to use their terminology.




LECHNER and MÜLLER-STEWENS (1999, page 4)

MCKINSEY (2006):

HUBER (2006)

Haas (2004), page 50

Baum, Coenenberg, Günther (2004, page 13).

WELGE, AL-LAHAM (2003, page 9)

Farrell and Associates (2005), page 2

Thommen, Achleitner (2006), page 920

Rothschild et al (2004)

Thommen, Achleitner (2006), page 921

Rühli (1991), page 16 f,

Strong (2005), page 5

Macharzina, Wolf (2005), page 266

Lombriser, Abplanalp (2005), page 61

New ways of thinking about statergy

Business Success provides a radical critique of current ways of thinking about how individuals and companies achieve success in business. It challenges the dominant paradigm in business and provides a new way of thinking about how success is sustained. This new way of thinking is based on the development of an understanding of how to align strategy and operational practice in supply chains rather than markets.

Business Success challenges all of the current ways of thinking about how sustainable success in business is achieved.

New way of thinking about business success, based on the principles of market closure through the ownership and control of critical supply chain assets

It is wrong to think about business success in terms of market competition

Focusing on critical assets in supply chains is the key to business success

Thinking entrepreneurially about supply chain innovation and intellectual property is critical for success

All business success is ultimately achieved by creating market closure through the ownership and control of critical intellectual property in supply chains

Understanding the scope for minimizing the copying of critical intellectual property is essential for success Market closure can be permanent, but is more likely to be temporary

Temporary market closure occurs through the operational development of relatively superior competence

Superior competence is linked to knowing and operationalaising the four principles of effective leverage

Developing practical guides that allow companies to understand the appropriateness of specific actions under contingent circumstances is the key to operational practice and strategic alignment

Practical operational guides for business success will always be based on an understanding of the four dimensions of supply

Classical approach to strategy requires that managers be ready and capable of adopting profit-maximizing strategies through rational long-term planning