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Structure
1. Analyze Industry/Environmental Conditions
2. Asses Strengths and Weakness of others
Conduct
1. Create distinctive strategic position to
outperform their rivals
2. Differentiate using premium price or low
costs
Performance
Endogenous Growth
human capital, innovation, and knowledge are
significant contributors to economic growth
Strategy can shape structure
RECONSTRUCTIONIST THEORY-ARCHITECTURE
How to?
Align Organizational activities with
this strategy
3
Factors
Resources
and
Capabilities
RECONSTRUCTIONIST THEORY-WHO AND
WHY
3
Propositions
Profit
Proposition
Employees to
Helps company execute the
Attracts Buyers
make money strategy
STRATEGY AND ITS FAILURE
Inputs:
Cost of production Complete Strategic Outputs:
People/ alignment of all 3 Value for the Buyer
Employees propositions. Revenue for itself
l. Execution failure
II. Formulation failure
REVISITING ALIGNMENT FOR 2 APPROACHES
Structural Approach
Reconstructionst Approach
Propositions Propositions aligned
aligned around around differentiation
differentiation or and cost
cost
DUBAI: IMPLEMENTATION OF BLUE OCEAN
STRATEGY ALIGNMENT
Value Proposition
Profit Proposition
Low Cost
Differentiation 1. Govt. invests in infrastructure that
1. Govt. to make profit from housing supports investors activities-
needs of foreign employees transport, tourism, aviation etc.
2. Profit from high volume of business 2. Restrict citizenship to foreign
travellers and cargo flowing in nationals
3. DP World operates in 50ports in 31 3. Almost no cost to maintain federal
countries govt.
DUBAI: IMPLEMENTATION OF BLUE OCEAN
STRATEGY ALIGNMENT
People Proposition
Differentiation
1. Citizens have access to social
security system govt. job and state
assistance
Low Cost
1. Zero income tax for expatriates
2. Preserve Dubais culture and
2. Housing at cheap rates
heritage
3. Real estate at cheap rates
3. Allow foreigners to own properties
outright
4. Multicultural environment
SUCCESSFUL ALIGNMENT