MGTS7603
Strategic Human Resource
Management
Models of Strategic
Analysis
Assessing Strategic
Effectiveness
Two Important Questions to
Answer
Q1: How well are we aligned with
our environment?
Q2: How well do we leverage our
strategic capabilities?
Let‟s review some strategic tools &
frameworks
to help us answer those two
questions.
The 5 Ps
Plan
Ploy
Pattern
Position
Perspective
Source: Mintzberg (1987)
Three Strategy Lenses
Environmental
analysis
Internal
analysis
Organisational
purposes plus
mandate
STRATEGIC INTENT
SWOT analysis
ISSUES / OPPORTUNITIES
Elements of
Strategic Analysis
Situation analysis
Ways of transmitting
organisational culture
Socialisation
tactics
Signs,
symbols
& stories
Rites &
Ceremonies
Norms &
values
Organisational
rewards
Organisational
culture
Source: Hill & Jones (1998)
Four possible ethical
stances
Short-term
shareholder interests
Longer-term
shareholder interests
Multiple
shareholder obligations
Shaper
of society
Source: Johnson & Scholes (1997)
Stakeholder analysis
model
Power
Legitimacy
Urgency
Source: Mitchell, Argyle & Wood (1997)
Growth stage Introduction stage
Mature stage Decline stage
„bet your company‟
culture
(high risk/slow feedback)
„tough guy/macho‟
culture
(high risk/fast feedback)
„work hard/play hard‟
culture
(low risk/fast feedback)
„process‟
culture
(low risk/slow feedback)
Industry life cycle stage/strategies/
matching cultures
Key
X
Y
Z
Scale of firm X
Compared to Firms Y & Z
in $B
$19B
$45B
$1.2B
2 3 4 5 1 Turbulence
Level
Turbulence
Strategy
Capability
Strategy - Capability Gaps
Strategic Directions
(Ansoff Matrix)
Positioning Matrix
Good
Poor
Good Poor
Competitive Position
Identify the key
competitive position
Strategic Business Unit Strength
strong medium low
Long
term
market
attract-
iveness
High
Low
Competitive Position
in electronics industry
Sony TEAC
Gold
Star
Bang
Ouloffsen
(Cost leadership) (Differentiation)
(Cost focus) (Differentiation
focus)
LOWER COST DIFFERENTIATION
BROAD
SCOPE
NARROW
SCOPE
The Strategy Clock
PESTEL Framework
Political Economic
Technological
Environmental Legal
Social
Approaches to
making sense
of the environment
ENVIRONMENTAL
CONDITIONS Simple Complex
Static
Dynamic
ENVIRONMENTAL
CONDITIONS
•Historical analysis
•Forecasting
Decentralisation
of organisation
Experience
& learning
Scenario
planning
Planned
Emergent
Competitive
rivalry
Potential
entrants
Buyers
Substitutes
Suppliers
The Five Forces Framework
The Cultural Web
of an Organisation
Stories Symbols
Structures
Power
structures
Control
systems
Rituals/
routines
Paradigm
Mechanistic Organic
Mechanistic and Organic
Characteristics
Rigid
Vertical
Closed
Low Uncertainty
Structured
Flexible
Horizontal
Open
High Uncertainty
Unstructured
HOW WHAT
Strategy Clear Unclear
Operations
Effective
Ineffective
Clear strategy and
effective operations
produce success both
now and in the future
Clear strategy but
ineffective operations
lead to short term
success but leaves co’y
vulnerable to compet-
ition in the future
Unclear strategy is
compensated by
adaptability and effic-
iency leading to
acceptable perform-
ance but future
success is doubtful
The business will be
a below par
performer with
failure likely in the
longer term
Relationship between
strategy and operations
Competitive
Situation
Turbulent
Predictable
Forgiving
Repetitive
Protective
Evolutionary
Entrepreneurial
Operational
Strategy
Culture
Leadership
Style
Group
Hierarchical
Intrepreneurial
Rational
Revitalises
Productivity
Managers
Builders and
Creators
Growth
Managers
Marketing
and sales
Inbound
logistics Operations
Outbound
logistics Service
Procurement
Firm
infrastructure
Human
resource
management
Technology
development
Support activities
Primary activities
Margin
Value chain analysis
Source: Porter, M.E. (1985)
Structure
functional
Shared Values
rational
Strategy
efficiency
Systems
antiquated
technology
Skills
knowledge
base
Style
heirarchical
Staff
•academic
•professional
•administration
7-S Model
Figure
Administrative system for professional organisations
Recruitment
selection
Work
assignments
Promotion
Training
development
Counselling
mentoring
Performance
evaluation
Compensation
Remuneration
Types of Core Capabilities
Threshold
Capabilities
Core
Capabilities
Support Basic Critical Cutting Edge
Support
services
(HR, legal, etc)
primarily
serve internal
customers
Skills & systems
common to most
firms in the
industry.
Necessary just to
be in this industry
Skills & systems
that are critical
to customers and
provide a firm
with today’s
competitive
advantage
Skills & systems
that need to be nurtured
and developed as sources
of tomorrow’s
competitive advantage
Source: Long & Vickers Koch (1995)
The source of
The source of
The foundation for
sustainable competitive
advantage
The pathway to
Resources
•tangible
•intangible
Capabilities
•team of
resources
Core
Competencies
•source of
competitive
advantage
Core
Capabilities
•combination
of core comp‟s
& strategic
processes
Strategic
competitive-
ness
•Above-
average
returns
Components of
internal analysis
Evaluation
Customer
To achieve our
vision, how should
we appear to our
customers?
Internal processes
To satisfy our
shareholders and
customers, what
business
processes
must we excel at?
Learning and growth
To achieve our
vision, how will we
sustain our ability
to change and
improve?
Financial
To succeed
financially, how
should we appear
to our
shareholders?
Vision
and
Strategy
Balanced scorecard’s
strategic control systems
Source: Kaplan & Norton, 1996a)
“The firms ability to integrate, build & reconfigure
competencies to address rapidly changing
environments” (Teece et al 1997):
Knowledge
Learning
Innovation
Processes
Position
Assets
Paths
Dynamic Capabilities
SWOT/TOWS
ANALYSIS
Always leave
blank
Strengths-S
1. List
2. strengths
3.
4.
Weaknesse-W
1. List
2. weaknesses
3
4.
Opportunities-
O
1. List
2.
3.
4.
SO Strategies
Use strengths to
take advantage
of opportunities
WO Strategies
Overcome
weaknesses by
taking
advantage of
opportunities
Threats-T
1. List
2.
3.
4.
ST Strategies
Use strengths to
avoid threats
WT Strategies
Minimise
weakneses and
avoid threats
Activity
Now Answer These
Two Important Questions:
Q1: How well are we aligned with our
strategic environment?
Q2: How well do we leverage our
strategic capabilities?
References
Johnson, G. Scholes, K. & Whittington, R.
(2008) Exploring Corporate Strategy:
Texts and Cases – 8th edition, Harlow,
UK: Prentice Hall.
Mintzberg, H. (1987) Five P‟s for Strategy,
California Management Review, 30 (1),
pp 11-25.
Teece, D., Pisano, G., & Shuen, A. (1997)
Dynamic Capabilities & Strategic
Management, Strategic Management
Journal, Vol 18, No 7, pp 509-533.