strategising for startups part 2 - unstrategising
TRANSCRIPT
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Strategizing For Start-Ups
Part II
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Paolo Aversa Lecturer in Strategy Cass Business School [email protected]
Strategizing for Start-UpsPart II
Simone Santoni Research Fellow Cass Business School [email protected] &
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About me• Cass research fellow
• My research focuses on:
• creative industries (music industry) and big data;
• entrepreneurial team formation and change.
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Outline• Part I, recap
• Is strategizing different for start-ups?
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Al Pacino, Every Given SundayPart I, recap
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What is strategy about?“The determination of the long-run goals and objectives of an enterprise; and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.” Alfred Chandler, Strategy and Structure
“Strategy is a pattern of resource allocation that enables firms to maintain or improve their performance.” Jay Barney, Gaining and Sustaining Competitive Advantage
“A diagnosis, a guiding policy, a set of coherent actions.” Richard Rumelt, Good Strategy Bad Strategy
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What is strategy about?
For me strategy is the process through which select and develop business opportunities.
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Al Pacino, Every Given Sunday
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Part I core proposition
Strategy stimulates value creation.
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The roles of strategy
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Decision Support Improves the quality of decision making
Improves performance by setting high
aspirations
Coordination & Communication
Target
Creates consistency and unity
Source: Grant, 2013
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What makes a successful strategy
Source: Grant, 2013
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Al Pacino, Every Given SundayIs strategizing different for startups?
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Al Pacino, Every Given Sunday
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The antecedents of strategy—RPV framework
Source: Christensen et al. 2004
Resources
Processes
Values
Strategy
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The antecedents of strategy—RPV framework
Source: Christensen et al. 2004
Resources
Processes
Values
Strategy
Things or assets that organisations can buy or sell, build or destroy.
Examples: • People • Technology • Products • Equipement • Information
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The antecedents of strategy—RPV framework
Source: Christensen et al. 2004
Resources
Processes
Values
Strategy
Establish ways companies turn resources into products or services. Examples: • Hiring/training • Product
development • Manufacturing
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The antecedents of strategy—RPV framework
Source: Christensen et al. 2004
Resources
Processes
Values
Strategy
The criteria by which prioritization decisions are made. Examples: • Cost structure • Income statement • Customer
demands • Ethics
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RPV framework—core proposition
Firms successfully tackle business opportunities when: • they have the resources to succeed; • when their processes facilitate what needs to get
done, and • when their values allow them to give adequate
priority that particular business opportunity in the face of other demands that compete for the company’s resources.
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The antecedents of strategy?! RPV framework
Source: Christensen et al. 2004
Resources
Processes
Values
Strategy
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Resources ~ entrepreneurial team
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The antecedents of strategy?! RPV framework
Source: Christensen et al. 2004
Processes
Values
Strategy
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Processes—as routines—tend to zero.
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Firms face a resource-process trade off.
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The antecedents of strategy?! RPV framework
Source: Christensen et al. 2004
Values
Strategy
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The antecedents of strategy?! RPV framework
Source: Christensen et al. 2004
Resources
Processes
Values
Strategy
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Al Pacino, Every Given SundayDoes strategy matter for startups?
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Al Pacino, Every Given SundayWrap-up
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Bring home
• Strategy stimulates (can stimulate) value creation
• Strategizing is different for startups
• The process of strategy formulation is tremendously ambiguous for startups
• Successful entrepreneurs are able to navigate ambiguity to discover superior courses of action