Mintzberg 5‘P’s of

Strategy
STRATEGY

 A strategy is a long term plan of action

designed to achieve a particular goal.
 The word derives from the Greek word
stratēgos, which derives from two words:
stratos (army) and ago (ancient Greek for
leading). Stratēgos referred to a 'military
commander' during the age of Athenia
Democracy.
APPROACHES TO STRATEGY

 Henry Mintzberg
 Peter Schwartz
 Margaret J. Wheatley
 Harold A. Linstone
MINZBERG SAY’S
Henry Mintzberg, in his book, The Rise
and Fall of Strategic Planning , 1994,
points out that "strategy" is used in
several different ways, the most
common being :
1. Strategy is a plan, a "how," a means
of getting from here to there.
2. Strategy is a pattern in actions over
time; for example, a company that
regularly markets very expensive
products is using a "high end"
strategy.
3. Strategy is position; that is, it reflects
decisions to offer particular products
or services in particular markets.
4. Strategy is perspective, that is, vision
and direction.
THE 5P’s

Plan

Perspective Ploy
5 P’s

Position Pattern
 PLAN
 It is a set of consciously intended course of
action, a guideline (or set of guidelines) to
deal with a situation.
 By this definition strategies have two
essential characteristics:
1) They are made in advance of the actions
to which they apply
2) They are developed consciously and
purposefully.
PLOY
 It is a specific manoeuvre intended to outwit
an opponent or competitor.
 The real strategy (as plan, that is, the real
intention) is the threat, not the new practice
area itself, and as such is a ploy.
 Threatened litigation often falls into this
category.
PATTERN
 A pattern is a stream of actions.
 Defining strategy is incomplete and needs an
outline that encompasses the resulting behavior.
 The outcome of strategy does not derive from the
design, or plan, but from the action that is taken as
a result.
 A pattern makes a strategy consistent in behavior,
whether or not intended.
POSITION
 Position implies a specific means of locating
a firm in its environment.
 In management terms: a "domain" consisting
of a particular combination of services, clients
and markets.
 Position is defined competitively.
PERSPECTIVE
 Perspective looks inward into the firm.
 Strategy is a perspective shared by members
of an organisation, through their intentions
and / or by their actions.
 In effect, when we talk of strategy in this
context, we are entering the realm of the
collective mind - individuals united by
common thinking and / or behaviour.
 CASE
 Honda is now the leading manufacturers of motorbikes.
The company is credited with identifying and targeting an
untapped market for small 50cc bikes in the US, which,
enabled it to expand, trounce European competition
and severely damage indigenous US bike
manufacturers.
 By 1965, Honda had covered 63% of the US market.
 On entering the US market, Honda’s planned strategy
was to compete with the larger European and US bikes
of 250ccs and over. These bikes had a defined market,
and sold through dedicated motorbike dealerships
 Disaster struck when Honda’s larger machines
developed faults - they had not been designed
for the hard wear and tear imposed by US
motorcyclists.
 Honda had to recall the larger machines. Honda
had made little effort to sell its small 50 cc
motorbikes-its staff rode them errands around
Los Angeles.
 Sports goods shops and ordinary bicycle and
department stores had expressed an interest, but
Honda did not want to confuse its image in its
‘target’ market of men who bought the larger
bikes.
 The faults in Honda’s larger machines meant that
reluctantly, Honda had no alternative but to sell the
small 50cc bikes just to raise money.
 They proved very popular with people who would never
have bought motorbikes before.
 Eventually the company adopted this new market with
enthusiasm with the slogan: ‘You meet the nicest
people on a Honda.’
 The strategy had emerged, agents, managers conscious
intentions, but they eventually responded to the new
situation.
PLAN :
 The company identified and targeted an untapped
market for small 50cc bikes in the US.

PLOY:
 These bikes had a defined market, and sold
through dedicated motorbike dealerships.
 Compete with the larger European and US bikes of
250ccs and over.
PATTERN :
 They proved very popular with people who would
never have bought motorbikes before.
POSITION :
 Company adopted a new slogan to present itself to

the customers : ‘You meet the nicest people on a

Honda.’
 Did not want to confuse its image in its ‘target’

market of men who bought the larger bikes.

PERSPECTIVE :
 The strategy had emerged, through agents, managers,
conscious intentions, but they eventually responded
to the new situation.
AT A GLANCE
P Comments
Plan A consciously intended course of action.
Ploy A maneoveour in a competitive game.
Pattern Emergent strategies
Position Environmental fit and relationship with
other organizations
Perspective A unique way of looking at the world, and
interpreting information from it, judging its
opportunities choices and acting
THANK YOU…
QUESTIONS???
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