Miles And Snow Typology - Ob2 71401h

Strategic Choice Miles & Snow Framework

Varun Joshi (10FN-117) Vidu Rastogi (10HR-044) Srikanth Konduri (10FN-109) Saurabh Thadani (10FN-102) Vishal Aggarwal (10DM-176) Tarun KSG (10DM-162)

Agenda Item 1

Miles & Snow – Strategic Human Resource Systems Evolution of the framework

Item 2

Prospector

Item 3

Defender

Item 4

Analyzer

Item 5

Reactor

Item 6

Strategic Orientation & Application Critical analysis

Raymond E. Miles •

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Professor of Business istration and dean of the School of Business istration at the University of California, Berkeley His early work focused on the effects of alternative theories of management on relationships and performance within the superior/subordinate work team

Charles C. Snow •

•

•

Associate Professor of Organizational Behavior in the College of Business istration at The Pennsylvania State University He has written many articles on strategic management and organization design. Written the book Organizational Structure, Strategy and Process with Raymond E. Miles (McGraw-Hill, 1978)

Strive for excellence : US v/s Japan •

During 1970s, many US corporations started giving renewed attention & added status to human resource functions and specialists

Japanese challenge prompted US managers to focus on HRM as a means of restoring their competitive position in challenging global market place •

As US moved further into the complex & new world of a high-technology, service based economy, farsighted managers recognized crucial role of HRM

Started to learn language and techniques of strategic planning, assumed a proactive chance in strategic thinking

Historical evolution of Business Strategies Investigated competitive strategies of several companies in widely different industries

Encountered impressive & dramatic competitive tactics & strategies

Convinced that these approaches revolve around few fundamental business strategies

Observed 3 basic types of strategic behavioral characteristics: Defender, Prospector & Analyzer

Adaptive Cycle Based on Study of 84 firms in : 1. College text book publishing 2. Electronics 3. Food processing 4. Hospitals

The Entrepreneurial Problem (Product/Market domain)

The istrative Problem (Leading/Lagging)

The Engineering Problem (Technology for production)

Snow’s take on adaptive cycle

PROSPECTOR

DEFENDER

ANALYSER

REACTOR

Prospector Regularly experiment with potential responses to emerging environmental trends

Creators of change & uncertainty to which their competitors must respond

Search for product & market opportunities

Microsoft

Fedex 3M

Concern for market & product innovation so, usually not completely efficient

Adobe Systems

Adobe – Cues from CEO $3.4bn acquisition of Macromedia, a multimedia software firm

Diversification & growth by adding Flash to its product line Meeting a broader set of customer needs & expanding its current market

They valued first mover advantage to gain pricing opportunity Confidence to coordinate challenges among cross functional teams

PROSPECTOR

DEFENDER

ANALYSER

REACTOR

Defender Ignore developments outside of this domain

Aggressively maintain prominence within its chosen market segment

Penetrate deeper into current markets

Philips

Paramount pictures Dell

Normally, growth occurs cautiously and incrementally due to seldom technology adjustments

Ryanair Airlines

Ryanair – Cues from Conversation It keeps costs at rock bottom, lower than anyone else in Europe company’s mantra is cheap tickets and not customer care Staff costs are kept low too. Offers no business class, maximizes seating space, doesn’t offer travel agent commissions Instead of giving away snacks or food, Ryanair sells it with a strategy: “Pile ‘em high and sell ‘em cheap” Turns around an aircraft in 25 minutes compared to 45 or so required by traditional carriers Although expanding by adding new routes, primarily concerned with stability rather than risk taking & seeking growth

PROSPECTOR

DEFENDER

ANALYSER

REACTOR

Analyzer Successful imitation through extensive market surveillance

Mixture of products & markets, some stable, others changing

Growth normally occurs through market penetration

Sony

P&G Starbucks

Growth may also occur through product & market development

Texas Instruments

Texas Instruments – Cues from Operations Views itself as a leader in product design & development-also competitive as the most efficient mass producer Mature products – human resources play maintenance and training role Innovative products – human resources play a more developmental role Their development is closely planned and the process of allocating resources to such developments is closely monitored Prides itself on its ability to shift organization structures

PROSPECTOR

DEFENDER

ANALYSER

REACTOR

Reactor Management adheres to a Strategy-Structure relationship that is not relevant to the environment

Technology, Structure and Process are not linked to strategy appropriately

Management fails to articulate a viable organizational strategy

Kodak

Kellogg Xerox

Except in highly regulated industries, they perform less well than the other three types

Atari Inc.

Atari Inc. – Cues from E.T’s “Game Over” In Lieu of increasing their sales, accepted developing E.T in just 6 weeks, based on the huge success of the movie E.T Result – one of the worst video games ever released-dull design, boring & monotonous game-play & chaotic product development Had no prior experience of making an action game out of a movie. Hence was a dumb idea Had a articulated strategy to develop the game but technology, structure & process not linked to it appropriately Unable to react efficiently to the changing market needs – Nintendo ultimately took over

Strategic Orientation & Application - 1 Entrepreneurial Problem

Organization

Adobe Systems

Ryanair Airlines

Texas Instruments

Atari Inc.

Product-Market Domain

Success Posture

Sureveillance

Growth

Broad, continuously expanding

Active initiation of change through M&A

Environment oriented, aggressive search

Enhancing product market development, diversification

Prominence in Low cost airlines

Strong organizational monitoring

Cautious penetration, advances in productivity

Narrow, carefully focused

Segmented, carefully adjusted

Calculated followers of change

Competitive oriented and thorough

Assertive penetration, careful product market development

Uneven, transient

Opportunistic thrust, coping posture

Sporadic, issue dominated

Hasty Change

Strategic Orientation & Application - 2 Engineering Problem

Organization Technological Goal

Technological Breadth

Technological Depth

Flexibility and innovation

Multiple technologies, pushing the edge

Technical personal skills,diversity

Ryanair Airlines

Cost efficiencies

Focal, core technology, basic expertise

Standardisation, maintenance programs

Texas Instruments

Technological Synergism

Inter-related technologies,at the edge

Incrementalism, synergism

Atari Inc.

Product development, completion

Shifting technological applications,fluidity

Ability to experiment & rig solutions

Adobe Systems

Strategic Orientation & Application - 3 istrative Problem

Organization

Dominant Coalition

Planning

Structure

Adobe Systems

Marketing & R&D

Problem & opportunity finding

Product/ market oriented

Ryanair Airlines

Finance & Production

Inside/Out.. Control dominated

Functionality, line authority

Centralised & formal/financially anchored

Staff dominated/ matrix oriented

Multiple method, careful risk calculation

Tight formal/loose operating

Avoid problems/remain solvent

Texas Instruments

Atari Inc.

Comprehensive Planning Staffs with incremental changes Trouble Shooters

Crisis oriented, disted

Control

Sales Volumes, performance

Critics & Convergence •Assesses relationships between organizations & their environments

•Optimizing Analyzer behavior not explained in detail

•Emphasized the great influence of topmanagement in the adaptation process

•Should not be applied to conglomerates that span multiple industries

•Led to Porters strategic positioning framework

•Defender & Prospector were similar to Burns & Stalkers Organic & Mechanic forms

New Product Development

Ansoff – Sheth and Morrison Study

Miles and Snow – Porter Typology

Bibliography

www.provenmodels.com www.kulzick.com/milesot.htm www.globalnpsolutions.com Organization Theory & Design

Strategic Choice Typology Miles & Snow Organizational Types A Review of Innovation Strategy Types Richard L. Draft

Deg Strategic Human Resource Systems by

Miles & Snow