\"Competitive strategy is about being different. it means deiiberoteiy choosing a different set of activities to deiiver a unique mix of vaiue\" (Porter, 1996:\"). The above statement alludes to the essence of what strategy is and the objective of strategic management. Porter (1996) further asserts that in most companies, managers describe strategic positioning in the market, through their customers' perspective, ratherthan in choosing to perform activities different to their rivals this, according to Porter is fundamental flaw in viewing a business strategy. Source: Porter, M. 1996. What is strategy? Harvard Business Review, 74(6): 6178. "[A] family name and soon to be the most loved chutney in South Africa, Mrs H.S. Ball's Chutney\" was created with the Ball family crest on the top ofthe label. The Woodstock factory opened in 1917 to meet escalating demand, and our most-loved bottle started to travel around the world. In April 2013 Mrs Ball's became a wholly owned subsidiary of Tiger Consumer Brands Limited." (M rsBalls, 2020). Source: MrsBalls. 2020. Our Story. [Online]. Available at: httpszwwwmrsba||s.com[oursto;y [Accessed 18 February 2022]. 3) Discuss the 5P's of strategy based on the argument above. b) Critique how Mrs Balls, one of the oldest companies in South Africa today, has implemented these 5P's. Introduction: The nature of strategic management | 17 ucularly portunity enefit The five Ps of strategy are as follows: product of the minds and ideologies of kvel Voice Strategy as a plan provides overall individuals, groups and management in vements, direction and a course of action. The the organisation. Resolving different views etween planning viewpoint or 'design school' and experiences requires negotiation nt of strategy views strategic decision- and bargaining. In other words, the making as a formal, logical, top-down extent to which the strategic link is ects. Uber structured process in which strategy is attained between the organisation and service' formulated by means of a rational analysis its competitive environment is mediated of the organisation, its performance, by how individuals and management and external environment. As a plan, interpret the internal resources and on expands strategy formulation is a formal process capabilities in the environment. As a trategy. of conception* implemented through perspective, strategy looks inside the organisational layers, structure and organisation - inside the mindset of control systems. In this approach strategy the collective strategists - and upwards is intended, as it looks and seeks to attain toward the strategic purpose, intent and or example a match or strategic link between the direction of the organisation." Strategy as internal organisational capabilities and a perspective is becoming more important a plan and external opportunities, forming the basis in developing a competitive advantage by n, strategy of the sustainable resource-based and creating better value propositions through nething an dynamic capabilities perspective discussed people and processes. The focus is on an ion, while in section 1.5.1. The planning approach inside-out perspective (see section 1.5.1). something to strategy has been criticised for being Strategy as a ploy is a specific manoeuvre , i.e. the a too rational, top-down management to outwit a competitor. For example, to ractice of approach, and for not being realistic give the impression of expanding capacity, ices (how enough given the unpredictability of the an organisation may purchase land to organisa- 21st century competitive environment. discourage a competitor from building activities However, research suggests that formal a new plant. The real strategy is not the anisation planning systems contribute towards expansion itself, but the threat or ploy. eciprocal better strategic decision-making, and Strategy as a pattern concerns consistent a-organ- have a positive impact on organisational behaviour over time. For example, an this rela- performance. 50 organisation that perpetually markets do (their Strategy as a position concerns the cheap products pursues a low-cost strategy. nfluence determination of particular products in > While strategy as a plan is intended, particular markets" - a matching of the strategies as a pattern evolve over time nted external and internal environments. As as a 'pattern in a stream of actions'.55 a position, strategy looks downwards Strategy as a pattern encompasses a meeting customer needs) and outwards, series of behaviours that result in a towards the external competitive market. strategy, whether intended or not. For The focus is on an outside-in perspective example, the realised strategy at Ford (see section 1.5.2). Motor Company was to produce the . Strategy as a perspective refers to the Model T Ford only in black. While organisation's way of doing things, and realised strategies do not always arise is also called the interpretative view$2 or from intended strategies, in this example experience.53 Future strategies are formed it was an intended strategy of Henry by adapting past strategies based on the Ford. Intended strategy is the strategy collective experience of individuals and envisioned by top management and the way of doing things embedded in the is achieved by managers shaping and cultural web of an organisation. It is a reshaping strategies as circumstances18 | CHAPTER 1 dictate, and as they learn from then an urban hotel, until a wa experience and seek out improvements. pattern of diversifying into when Only 10-20% of intended strategies hotels with restaurants emerged are realised. 56 Intended strategies that att are fully realised are referred to as To summarise, the challenge for one st deliberate strategies, and those that are is to maintain a balance between not realised, mainly due to unpredicted and emergent strategies. This is a change, are called unrealised strategies 57 with the strategic paradox and is done or abandoned strategies. 58 further in section 1.8. > When the pattern realised is not The most classic case of strategy & ; explicitly intended, it is referred to as tern is the Honda Motor Company's an emergent strategy (see Figure 1.2). into the US motorcycle market, " The un Emergent strategies are 'the patterns of tional explanation of Honda's success decisions that emerge from individual it redefined the US motorcycle industry managers adapting to changing a well-conceived intended strategy. Da external circumstances and the ways the fact that Honda's strategy was due in which the intended strategy is disastrous, the Japanese management at interpreted.59 Such strategies are and flexibly responded to unforeseen dim unplanned responses to unforeseen stances. Honda's reaction was unplanned circumstances. They are neither a emerged as circumstances changed product of formal top-down planning An important lesson for strategists ist nor a bottom-up approach, but they need to recognise the process of rather a 'fuzzy and intuitive process gence and intervene where appropriate Is of understanding.60 For example, need to realise that strategies can grow in rather than pursuing a comprehensive any point in the organisation, provided pep diversification strategy, an organisation have the capacity to learn and the resource may first test the market by purchasing to support that capacity. Eighty percent of the a restaurant, then a resort hotel, and success of world-class organisations can Figure 1.2 Deliberate and emergent strategies Organisational situation Unrealised strategies (discarded/inappropriate) External environment Planned Macro strategies Industry (formal) Competitive Deliberate strategy Realised intelligence Intended (implementation of