Strategy is the great work of the organization. In situations of life or death, it is
the Tao of survival or extinction. Its study cannot be neglected.−Sun Tzu, The
Art of War
Strategy is about achieving
success.
Common elements in successful
strategies
clear goals,understanding
the competitive
environment,resource
appraisal, and effective
implementation
Strategy is not a detailed plan or program of instructions; it is a
unifying theme that gives coherence and direction to the
actions and decisions of an individual or an organization.
Strategic fit
link between the firm and its external
environment.
This refers to the consistency
of a firm’s strategy, with the
firm’s external environment
andwith its internal
environment, especially with
its goals and values and
resources and capabilities.
create a consistent strategic position
and direction of development.
WHY,WHERE,HOW?
Why Do Firms Need Strategy?
Strategy as Decision Support
-simplifies decision
making by constraining
the range of decision
alternatives,permits the
knowledge of different
individuals,It facilitates
the use of analytic tools
Strategy as a Coordinating Device
CEO can communicate the identity, goals,
and positioning of the company to all
organizational members.
Strategy as Target
strategy is not only to establish a direction for the firm’s
development but also to set aspirations that can motivate
and inspire members of the organization.
Where Do We Find Strategy?
“Why we exist.”,“What we believe in and how we will behave.”,“What we want to be.”
How Is Strategy Made? The Strategy Process
Should managers seek to formulate strategy through a rational systematic process?
is the best approach in a turbulent world to respond to events while maintaining some sense of
direction in the form of goals and guidelines?