Strategic analysis 3: History & culture DSGM (Lecture 3.2) Dr Elvira Bolat C113, Christchurch House, Talbot campus ebolat@bournemouth.ac.uk @Elvira_Mlady
This week: Outline Catch-up! Lecture 2.2: Micro-environmental analysis – Understand the importance of market segments in marketing strategy
Lecture 3.1: Resources and capabilities – – – – –
Compare industry v. resource-based views Define (strategic) capabilities and its elements Review how (strategic) capabilities can enable building a competitive advantage Discuss techniques to assess strategic capability Discuss how (strategic) marketing capabilities can be developed
Lecture 3.2: History and culture – Understand importance of history – Define culture – Explore strategic drif
Summary for the week Next week’s seminar preparation
Sometimes an organisation cultural heritage can give it a unique advantage, but sometimes it can be a significant barrier to change. Johnson et al., 2017
Johnson et al., 2017
WHY?
Lock-in
Path dependency
Johnson et al., 2017
Path dependency & Strategy • Comprehensive change (e.g. airline industry) • Conservatism (costs versus benefits/harm, i.e. lef-hand driving) • Path creation (Apple, Microsof)
In practice:
History – a strategic resource Learning from the past (i.e. industry characteristics, competition)
Building capabilities (i.e. Disney, automobile industry)
Legitimising strategy & change (e.g. Microsof, HP)
! A need for historical analysis
Culture
Cultural frames of reference Johnson et al., 2017
Geographically-based culture
Organisational fields - based culture Categorisation
Recipes
Legitimacy
Organisationan- based culture “- the basic assumptions and beliefs that are shared by members of an organisation, that operate unconsciously and define in a basic taken-for-granted fashion an organisation’s view of itself and its environment�
Organisationan- based culture
Indentity Subcultures
Corporate level
Organisationan- based culture
Johnson et al., 2017
In-practice
Culture & strategy
In practice: Blockbuster
Johnson et al., 2017
Cultural: analysis
Strategic drif â€œâ€Ś the tendency for strategies to develop incrementally on the basis of historical and cultural influences, but fail to keep pace with a changing environmentâ€?
Johnson et al., 2017
Food4thoughts: power of institutional logics
Summary • Resources and capabilities, if VRIN, contribute to sustainability of competitive advantage • Dynamic capabilities are crucial to cope with uncertainty & change • History and culture can lead to competitive advantage and lock-in organisational progress (strategic drif – a common issue)
Individual students (pair or trio) will be given a task that requires a pre-work (i.e. analysis of the company) and then presentation of your results at the start of the following week’s seminar/workshop. Your task is conduct your research and present your findings in 7 minutes using 7 slides.
Episode 1 Our presenters per seminar group are: Group A: Adrien Abbruzzino, Jordon Boukhari and Djamila Bousksou Group B: David Bromley, Jung Choi and Shannon Crocker Group C: Dominic Burt, Jack Byford and Bradley Cox Group D: Joshua Abbott, Stephen Buckler and Harrison Casella Task: You are to explore Uber, its unique resource portfolio, and on the basis of this analysis recommend a market they should be entering next. Remember! You are to produce 7 slides to present in 7 minutes
Seminar prep – new week! • Please read this article: – Morgan, N.A., 2012. Marketing and business performance. Journal of the Academy of Marketing Science, 40(1), pp.102-119.
• Look into secondary data around Toys R Us and apply framework (Figure 1) to the analysis of the company. Bring in results of your analysis.
References • Barney, J., 1991. ‘Firm resources and sustained competitive advantage’, Journal of Management, 17 (1), 99–120 • Danneels, E., 2008. ‘Organisational antecedents of second-order competences’ Strategic Management Journal, 29, 519-543 • Hamel, G. & Prahalad, C.K., 1990. ‘The core competence of the corporation’, Harvard Business Review, 68 (3), 79–91. • Hooley, G., Saunders, J., Piercy, N. and Nicoulaud, B., 2012. Marketing Strategy and Competitive Positioning, 5th ed. London: FT Prentice Hall. • Hunt, S.D. & Derozier, C., 2004. ‘The normative imperatives of business and marketing strategy: grounding strategy in resource-advantage theory’, Journal of Business & Industrial Marketing, 19 (1), 522 • Johnson, G., Whittington, R., Scholes, K., Angwin, D. and Regner, P., 2017 Exploring Strategy, 11th ed. London: Pearson Education. • Porter, M., 1980. Competitive Strategy. New York: Free Press • Porter, M.E., 1985. Competitive Advantage: Creating and sustaining superior performance. New York: Free Press • Teece, D.J., 2007. ‘Explicating dynamic capabilities: The nature and micro-foundations of (sustainable) enterprise performance’, Strategic Management Journal, 28 (13), 1319-1350. • Wang, C.L. & Ahmed, P.K., 2007. ‘Dynamic capabilities: A review and research agenda’ International Journal of Management Reviews, 9(1), 31-51.