MGT510 Discussion Module#14

CONTEMPORARY STRATEGY ANALYSIS
tenth edition
Robert M. Grant
John Wiley & Sons Ltd., 2019
Chapter 15
Current Trends in
Strategic Management
1
Current Trends in
Strategic Management
OUTLINE
▪ The New Environment of Business
▪ New Directions in Strategic Thinking
▪ Redesigning Organizations
▪ The Changing Role of Managers
Copyright © 2019 John Wiley & Sons, Inc.
THE NEW ENVIRONMENT OF BUSINESS
The Turbulent 21st Century
2000: Collapse of
“New Economy”
Volatile
Markets
•Dot.com bubble bursts
• March 2000 NASDAQ
at all-time peak
E.g. Brent
crude June
Terrorism
• Attacks of September 11, 2001 ’09 $148;
Dec. ‘09 $38
2008-9:• Invasion of Afghanistan
2011:
Financial crisis & Iraq
Arab Spring
Decline of US
world influence
–emergence of a
multi-polar world
The Third Industrial
Revolution:
•
•
•
Digital technologies
Intelligent systems
Disintermediation of
human beings
Demands of society
•Social & environmental responsibility
•Ethics & fairness
•Quest for meaning
Copyright © 2019 John Wiley & Sons, Inc.
Natural Disasters
Hurricanes, earthquakes, fires
Globalization reverses
The rise of economic nationalism
The New Politics
• The decline of liberalism
• The rise of demogogues
• The politics of identity
THE NEW ENVIRONMENT OF BUSINESS
Forces Shaping the Business Environment
Digital Technology
• Destruction of industries: travel agencies, bookstores, broadcast TV
• Rise of new industries: e-commerce, ride-share services, audio & video streaming,
shared ownership,
• Transformation of industries: financial services, communications, dating
Competition
• Rise of dominant firms: in mature sectors (A-B Inbev, Starbucks, Boeing, Walmart;
in new industries (Alphabet, Apple, Alibaba, Amazon, Facebook, Tencent)
• New competitors from emerging markets (Huawei, Haier, Infosys, Embraer)
Systemic Risk
• In interconnected world,initiasl disturbances are amplified and transmitted: e.g.
Financial crisis of 2008-9, Arab Spring, Islamic State
Social Forces and the Crisis of Capitalism
• Twin pillars of Western civilization—liberal democracy & market capitalism—
undermined by inequality, intolerance, decline of rationalism
Copyright © 2019 John Wiley & Sons, Inc.
THE NEW ENVIRONMENT OF BUSINESS
Ratio of average CEO compensation to
that of the average worker, USA 1965-2016
NEW DIRECTIONS IN STRATEGIC THINKING
Rethinking Strategy
Reorienting
Corporate Objectives
• Emphasis on stakeholder goals
and societal role of firms
• Focus on profit drivers rather
than stock market valuation
Strategy
in a Digital World
Seeking
More Complex Sources
of Competitive Advantage
• Multiple layers of competitive advant
• Exploiting cross-business linkages
• Emphasis on innovation and new
• See next slide
Managing Options
•Turbulence increases option values
•Strategies to create options: lower
financial leverage, experimentation,
exploratory R&D, alliances,
product platforms
© 2019 Robert M. Grant
www.contemporarystrategyanalysis.com
business development
Understanding
Strategic Fit
• Complementarity of mana
practices
• The implications of compl
• Contextuality of linkages
NEW DIRECTIONS IN STRATEGIC THINKING
The strategic characteristics of digital industries
Strategic characteristics
Industry
structure
Competitive
advantage
Strategy implications
Importance of
complementary products
Platform competition and winnertake-all markets)
Complex industry
Structures (“ecosystems”)
Potential for complex and
innovative business models
Network externalities
Swift erosion of competitive
advantage (unless supported by
network dominance)—hence
need for speed
Fast cycle innovation and
product development
Ease of imitation of
successful strategies
Fungibility of IT resources
Copyright © 2019 John Wiley & Sons, Inc.
Critical importance of timing:
strategic windows of short
duration
Ease of diversification between
technology-based industries
REDESIGNING ORGANIZATIONS
The Emerging Shape of the Business Enterprise
The New Environment of Business
SelfMultidimensional Informal
organization organization
structures
New Directions in Strategic Thinking
Copyright © 2019 John Wiley & Sons, Inc.
Permeable
Boundaries
THE CHANGING ROLEOF MANAGERS
New Models of Leadership
THE LEADERSHIP
NEEDS OF
ORGANIZATIONS
The ability to:
• build confidence
• build enthusiasm
• cooperate
• deliver results
• form networks
• influence others
• use information
Copyright © 2019 John Wiley & Sons, Inc.
THE REQUIRED
COMPETENCIES OF
BUSINESS LEADERS
• motivating colleagues
• cultivating sense of purpose
• cross-cultural flexibility
• self-awareness
• resolve
• proactivity
• problem-solving
• relationship building
• vision
7/1/23, 5:31 PM
Strategy Planning
Name
Discussion 25
Description
25 points
Rubric Detail
Levels of Achievement
Criteria
Exceeds
Expectations
Meets
Expectation
Some
Expectations
Unsatisfactory
Quantity
5 to 6 points
3 to 4 points
1 to 2 points
0 to 0 points
Initial post and
two other posts
of substance.
Initial post and
one other post
of substance.
Initial post only.
Did not
participate.
5 to 6 points
3 to 4 points
1 to 2 points
0 to 0 points
Demonstrates
excellent
knowledge of
concepts, skills,
and theories
relevant to the
topic.
Demonstrates
knowledge of
concepts, skills,
and theories.
Demonstrates
satisfactory
knowledge of
concepts, skills,
and theories.
Did not
participate.
5 to 6 points
3 to 4 points
1 to 2 points
0 to 0 points
Discussion
post(s) exceed
expectations in
terms of support
provided and
extend the
discussion.
Discussion
post(s) meet
expectations in
terms of
support
provided.
Statements are
satisfactory in
terms of
support
provided.
Did not
participate.
6 to 7 points
4 to 5 points
1 to 2 points
0 to 0 points
Writing is well
organized, clear,
concise, and
focused; no
errors.
Some significant
but not major
errors or
omissions in
writing
organization,
focus, and
clarity.
Numerous
significant
errors or
omissions in
writing
organization,
focus, and
clarity.
Did not
participate.
Content
Support
Writing
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