The concept of strategy

The role of strategy in success
1. Examples
  1. In both cases:
    1. Consistency of direction
    2. Clear understanding of the desired goal
    3. How to maneuver into a position of advantage
  2. Characteristics of a strategy that are conductive to success
    1. Goals: Consistent & long-term
    2. Understanding of the competitive environment
    3. Objective appraisal of resources:
    4. Effective implementation
  3. Lady Gaga
  4. Queen Elizabeth II
The strategy process
1. Strategy may emerge as an adaptation to circumstances.
Introduction
1. Strategy is about achiving success
  1. Gives coherence and directionto actions and decisions
  2. Components
    1. Analysis of external environment (industry)
    2. Analysis of internal environments (Resources & capabilities)
The basic framework for strategy analysis
1. Strategy is the link between the firm & the industry environment
2. SWOT framework
  1. Important to identify internal and external forces
3. Strategic Fit: Consistency of a firsm's strategy
  1. "Strategy is the creation of an unique & differentiated position involving a different set of activities" - Porter
  2. KEY: How activities fit together to form a consistent mutually reinforcing system
  3. Contingency theory: The best way to design, manage & lead an organization depends upon circumstances (environment)
A brief history of Business Strategy
1. Strategies: is the overall plan for deploying resources to establish a favorable position
2. Tactic: scheme for a specific action.
3. Corporate planning: Long-term planning (1950's)
4. Shift from planning to Strategy making
  1. Strategy making: Focuses on competition as the main characteristic of the business environment
Strategy today
1. means by which individuals or organizations achieve their objectives.
2. business environment has become more unstable & unpredictable
3. Neither Queen Elizabeth nor Lady Gaga appears to have had any detailed strategic plan.
4. Strategy
  1. As decision support
    1. simplifies decision making
    2. facilitates the use of analytic tools
  2. As coordinating device
  3. As target
    1. forward-looking strategy
    2. set aspirations that can motivate and inspire members of the organization
  4. WHere?
    1. Heads of managers, articulations of strategy in speeches and written documents, & in decisions.
5. Where to compete? • How to compete?
  1. the two major areas of a firm’s strategy:
    1. corporate strategy and business strategy
      1. CS: defines the scope of the firm in terms of the industries and markets.
      2. BS: how the firm competes within a particular industry or market
Strategy is a key ingredient to success
Strategy is about direction, identity, and exploiting the sources of superior profitability.
Describing a strategy of a firm: where the firm is competing, how it is competing, and the direction in which it is developing.

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The concept of strategy

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