0TPR

Session 6 : Organization Strategy

COORDINATOR & FACILITATOR

Prof. Manoj Ghadge

Contents
1.

Strategy

2.

Strategic Intent

3.

Strategy Imperative

4.

Porters Competitive Strategy

5.

Miles and Snows Strategy Typology

6.

Strategic Choice & Organization Design

Strategy
Strategy is a plan for interacting with the competitive

environment to achieve organizational goals (Daft, 2013).

Two views on Strategy
1. Planning mode: well-thought-out and systematic plan
developed in advanced.
2. Emerging mode: evolving over time as a pattern in a stream
of significant decisions.

Strategy
Specific pattern of decision and actions that managers take to use core

competencies to achieve competitive advantages and outperform

competitors
1.

Core Competencies: The skill and abilities in value-creation

activities that allow a company to achieve superior efficiency,

quality, innovation or customer responsiveness.
2.

Competitive Advantage: Refers to what set the organization apart

from others and provide it with a distinctive edge for meeting

customer and client needs in the marketplace.

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Sources of Core Competencies

Specialized Resources
Functional Resources
Organizational Resources

Coordination Abilities
Abilities to coordinate its functional and
organizational resources to create maximum value

Strategic Intent
Mission
Competitive Advantage
Core Competence

Strategic
Intent

Strategic intent - organizations energies and resources are

directed toward a focused, unifying, and compelling goal
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Strategy Imperative

Environmental
Factors
and

Strategy

Structure

Organizational
Capabilities

Framework Strategy and Design

Formulating strategies is choosing whether the organization

will perform different activities than its competitors or will

execute similar activities more efficiently than its
competitors do.
Two models for formulating strategies;

1. Porters model of competitive strategies

2. Miles and Snow strategy typology
Each provides a framework for competitive action.
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Porters Competitive Strategies

1. Differentiation : Eg. Apple - its attempt to

distinguish its products and services from others in

the industry.
2. Low Cost Leadership: Eg. Ryanair efficiency and
lower operating costs can cut competitors prices
and still earn profits.

Porters Five Forces

Managers should understand forces in industry and
environment
The Threat of New Entrants
The Power of Suppliers
The Power of Buyers
The Threat of Substitutes
Rivalry among Existing Competitors
Porter suggests that companies adopt strategies based on five
forces analysis
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Miles and Snow Strategy Typology

Seek to formulate strategy that will be congruent with the external

environment. Organizations strive for a fit among internal

organization

characteristics,

strategy,

and

the

external

environment. The four strategies that can be developed are;

1. Prospector
2. Defender
3. Analyzer
4. Reactor

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Miles and Snow Strategy Typology

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Strategy affects Organization Design

Strategy is one of the important factor that affects

organization design.
Organization design characteristics need to support
the firms competitive approach.

Refer to Exhibit 3.6 (Daft, 2013, p. 138)

Read HBR Article How Strategy Shapes Structure
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