What are the most significant differences between the planning/design/positioning schools of strategic management and the resource based view? Define the planning of strategic management: Strategic planning can be defined as a process of organization that defining its strategy, direction, and making decision about resource to pursue its strategy. For the defining organization’s direction, its must be understand the current position and find out the way to making it successful. Generally, strategic planning must be including one of three key questions: 1.”What do we do?”
2.”For whom do we do it?”
3.”How do we excel?”
Define the design of strategic management:
Strategic design can be defined as a using of future-oriented design principles that improve an organization’s innovative and competitive qualities. Its focus on analysis internal, external, trend allows to make design decision on the basis of facts rather than intuition. Strategic design can be seen as a new way to change innovation, management, and research. Define positioning schools of strategic management
Strategic positioning can be defined as a strategy that the marketers try to create an image of product, image of organization’s brand and find out the way bring the product, organization target to the market, special to consumer’s mind. Strategic Positioning is defined as doing different activities than your competitors or doing the same activities differently. This is the way your company becomes a superior performer in the industry. Many people describe their positioning based on their customer base. For example, Burger King focuses on young adult males as their target customer.
There strategy and positioning is directed to satisfy this sector of the market. Wendy’s on the other hand has a different positioning. They base their positioning to satisfy the older health conscious individuals. They both differ from our strategy. When you simplify things down it turns out there are only two basic types of positioning; low cost or differentiation. This is how you choose to serve your customer base, or how your customer base guides you to operate. You choose your customer base to be either
broad or narrow scope. The company needs to select one or the other in both categories or they will achieve below average results and be mediocre. We have selected one and are doing it well
Define resource based view: Corporations are different; most of them have the ability to undergo the risk of rapid changes. And in their recognition to the human resources and investments, corporation still have the ability to create cooperative and productive behavior, despite of the massive agency and organizational costs. The resource-based view approach enables the firm to have unique resources and capabilities and used as an advantage to excel in the marketplace. This influential approach defines the capabilities as the firm’s core resources, which makes the firm as a whole. The capabilities lie within a firm’s infrastructure, reflect both the firm’s human resources and routines which is most of all, difficult to duplicate or replicate by the competitors (2008).
Resource based view can be defined as a Compare between strategic planning, strategic design and strategic positioning Strategic planning| Strategic design| Strategic positioning| Allow to making organization successful| Allow to making organization successful | Allow to making organization successful| Planning of organization in the future | Planning of organization in the future| Planning of organization in the future| Aim to enhance product brand and organization’s brand | Aim to enhance product brand and organization’s brand| Aim to enhance organization position in the future| Long-term process| Long-term process| Long-term process| Focus on defining strategies, direction for organization| Focus on improve an organization’s innovative and competitive qualities| Focus on creating an image of product, image of organization’s brand| Making decision about resource to pursue its strategy| Analysis internal, external, trend allows to make design decision on the basis of facts rather than intuition| Bring the product and organization brand target to the market and consumer
Strategic planning, strategic design and strategic positioning compared with resource based view
Nowadays, Lenovo is one of famous company provide personal computer in the international market. Strategic positioning of Lenovo Strategic positioning of Lenovo focus on three main factors such as: high-end, middle and high-end combination of market positioning methods. Middle and high-end cannot only guarantee the Lenovo position in the market but also continue bring the image and status in consumer’s mind. Hence, nowadays all of computer manufacture face to the decrease of profit lead to Lenovo decides to choose for high-end positioning, It’s will allow Lenovo company gain competitive advantage from the international market (Gan, 2002). Low energy is one of essential part for consumer demand of IT industries and it is also an image of the representatives of high-tech enterprise. By using low energy and market leading-edge technology positioning allowed to enhance Lenovo brand. Customers‟ focus has changed from product quality and price gradually to control energy consumption, frequency and quiet technology (Jack, Telaote, Lise, 2006). Strategic planning of Lenovo
Create strong brand awareness; focus on city customers who have high knowledge. Lenovo is one of largest personal computer in the international market, therefore Lenovo can attract more consumer or gain customer loyal. Lenovo targeted to cities customer who have the high level of education and the person who below 45 years old. Lenovo called this crowd high-end crowd and the crowd can gain profit for Lenovo Company. Lenovo also focused on the rural market where the customers have strong awareness. This crowd will become a part of purchasing power. Lenovo provided “free movies for country’ that attract more customers in the rural market. For a long-term, Lenovo will enhance the brand and easy to enter the rural market. Strategic design of Lenovo
Strategic design is one of important role to making Lenovo’s success because it will attract more customers. For this strategy, Lenovo starts with “material as a road map” and also involves communicating with the design team, researching user needs, and making the first molds in the Lenovo Innovation Design Center’s lab in Beijing. The first floor of the three-story center is dedicated to material. Follow (Yao, 2005) he said that the material is very important because it is what people first see. For this strategy, Lenovo provide to the market the product come with goods material as a quality of product. Resource based view of Lenovo
Resource based view of Lenovo include three aspects such as tangible assets, intangible assets a) Tangible assets
A total asset of Lenovo before purchased IBM has reached 20 billion USD and the material basis of strong to create value for customers (Ling Zhijun, 2006).
b) Intangible assets
Lenovo “brand value based on cost, denoted by $ 1.677 billion in earnings. Lenovo brand value is very large, special in China. Lenovo 2003, investment in new products, capital of 2 billion, to increase the development of new technology, to sum up, although with large international companies HP, Dell , the association is not advantage, but in the domestic market, Lenovo can come out on top (Richard, 2008). McDonald Company
McDonald strategic planning
McDonald’s strategic planning can call “plan to win” , the concept of this plan means make the McDonald’s become one of biggest fast food restaurant not in America that over the world. McDonald’s achieved this plan by applying the five P’s such as People, product, price, place and promotion and incorporate geographic strategic plans. The main products of McDonald’s focused on breakfast, chicken, beverages but for this strategic planning of McDonald they has launched the Southern Style Chicken Biscuit for breakfast and Southern Style Chicken Sandwich for lunch and dinner. Hence, they introduced new hot specialty coffee to consumer. Furthermore, In the Asia-Pacific, Middle East, MacDonald’s strategic planning is focused on the breakfast and core menu extensions and value. McDonald strategic design
For the strategic design of McDonald, they paid attention to consumer in every country over the world, special to children. They make their consumer happy and provided “happy meals” with strange toys to them. Hence, McDonald’s has launched computer come with many kinds of game for children. McDonald’s analysis that Children are one of the biggest consumers, therefore they find many ways to make them satisfy and make them feel McDonald’s is one of happy place for them to go. For example, the price for happy meal set for child cost 5$ but they produce additional happy meal set for whole family. In my opinion, McDonald’s is not just selling the happy meal to children; it is selling the American culture to the children – the enjoyable individual life. Actually this strategy with focused children segment is fully workedfor their future development purpose. Whatever how the environment changes this strategy can always develop future generation customers’ loyalty. And the “happy children” can also bring in the whole “happy families”. McDonald’s strategic positioning
For the McDonald’s strategic positioning that in a few years ago, McDonald’s tries to improve their scope that attracts more consumers. For improve of McDonald’s scope, they are trying to reduce the time for delivery and the cost for the foods. However, for the McDonald’s strategic positioning, they try to provide to consumer good services and high quality of the foods by enhance their equipment. Furthermore, McDonald’s do many things differentiation with their competitor such as they provided to customers playground in their restaurant and they focus marketing to family market where as their competitors missing. Burger King can be seen as an example, Burger King only focus marketing to young adults. Nowadays, McDonald’s become one of biggest fast foods restaurant in the world.
MacDonald Resource based view
For the company, the strategy is concerned with matching a firm’s resources and capabilities to the opportunities that arise in the external environment. The resources and capabilities of a company are considered as a strategy. The increasing emphasis on the role of resources and capabilities as the basis for strategy may come in to two factors. First, the industry where the firm belongs became unstable and so the internal resources and capabilities of the firm are given more focus in formulating strategies. And second, the combination of the resources and capabilities of the firm became the superior competitive advantage and profitability (2007).
The connection between the resource and capabilities of a firm in the area of business makes a competitive advantage. It is because the capabilities and resources allow the organization to create value and gain some form of advantage from the rivals. The capabilities and resources may include the degree of business cycle literacy of the top of management team; deployment of various forecasting resources; a facilitative organizational structure that facilitates timely acquisition, processing, and dissemination of macroeconomic information as well as timely decision making relative to rivals; the observable application of a set of business cycle-sensitive management principles; an a supportive organizational culture that supports the firm’s management activities (2005).
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