Mintzberg 5‘P’s of Strategy

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. .STRATEGY   A strategy is a long term plan of action designed to achieve a particular goal.

APPROACHES TO STRATEGY     Henry Mintzberg Peter Schwartz Margaret J. Linstone . Wheatley Harold A.

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

THE 5P’s Plan Perspective 5 P’s Ploy Position Pattern .

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. . a guideline (or set of guidelines) to deal with a situation.PLAN   It is a set of consciously intended course of action.

and as such is a ploy.PLOY    It is a specific manoeuvre intended to outwit an opponent or competitor. The real strategy (as plan. Threatened litigation often falls into this category. not the new practice area itself. . that is. the real intention) is the threat.

whether or not intended. The outcome of strategy does not derive from the design. but from the action that is taken as a result. . Defining strategy is incomplete and needs an outline that encompasses the resulting behavior. or plan. A pattern makes a strategy consistent in behavior.PATTERN     A pattern is a stream of actions.

clients and markets. Position is defined competitively.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.

PERSPECTIVE    Perspective looks inward into the firm. Strategy is a perspective shared by members of an organisation. we are entering the realm of the collective mind . . through their intentions and / or by their actions. In effect. when we talk of strategy in this context.individuals united by common thinking and / or behaviour.

which.   By 1965. Honda had covered 63% of the US market. These bikes had a defined market. enabled it to expand. The company is credited with identifying and targeting an untapped market for small 50cc bikes in the US. Honda’s planned strategy was to compete with the larger European and US bikes of 250ccs and over.CASE  Honda is now the leading manufacturers of motorbikes. and sold through dedicated motorbike dealerships . trounce European competition and severely damage indigenous US bike manufacturers. On entering the US market.

but Honda did not want to confuse its image in its ‘target’ market of men who bought the larger bikes. . Honda had made little effort to sell its small 50 cc motorbikes-its staff rode them errands around Los Angeles.they had not been designed for the hard wear and tear imposed by US motorcyclists. Honda had to recall the larger machines.   Disaster struck when Honda’s larger machines developed faults . Sports goods shops and ordinary bicycle and department stores had expressed an interest.

agents.    The faults in Honda’s larger machines meant that reluctantly. Eventually the company adopted this new market with enthusiasm with the slogan: ‘You meet the nicest people on a Honda.’ The strategy had emerged. They proved very popular with people who would never have bought motorbikes before. but they eventually responded to the new situation. Honda had no alternative but to sell the small 50cc bikes just to raise money. managers conscious intentions. .

PLOY:   These bikes had a defined market. Compete with the larger European and US bikes of 250ccs and over. .PLAN :  The company identified and targeted an untapped market for small 50cc bikes in the US. and sold through dedicated motorbike dealerships.

PATTERN :  They proved very popular with people who would never have bought motorbikes before. through agents. PERSPECTIVE :  The strategy had emerged. . conscious intentions. but they eventually responded to the new situation. managers.’  Did not want to confuse its image in its ‘target’ market of men who bought the larger bikes. POSITION :  Company adopted a new slogan to present itself to the customers : ‘You meet the nicest people on a Honda.

A maneoveour in a competitive game. Emergent strategies Position Environmental fit and relationship with other organizations Perspective A unique way of looking at the world.AT A GLANCE P Plan Ploy Pattern Comments A consciously intended course of action. judging its opportunities choices and acting . and interpreting information from it.

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