What is Strategy?

Process and Content

Pyschology.  Relaxation of the the rigidities in economics in the 1980¶s has put economics back in the forefront as a solid theoretical foundation for strategy  History leads to a very young field of research with little in the way of ³accepted´ principles and theories . and institutional theory as ³alternative´ explanations for strategy. political sceince.History of Strategy?  Rooted in the Military  Originated in business with the emergence of the business schools (Wharton and Harvard)  First known as Business Policy  Used as a capstone course to bring business functions together  Had little grounding in its own theory  Real research in the area of ³strategic management´ only really began to take shape in the 1970¶s  Technically economics is the grounding for strategic management theory  Rigid structure of neoclassical economics did not serve empirical evidence of firm performance well which lead to other disciplines such as sociology.

Purpose of Strategy?  What is the ultimate goal of strategy for a firm? Maximize shareholder value ³Monopoly´ power Bigger can be better Profits ± above average Success ± but what is success?  Staying in business/survival Does strategy imply or require exploitation of other? Tactics Defn  How do we position ourselves to achieve sustainable above average profits in the long run .

What is Strategy?  Hierarchical Definition  What is it?  Part of a 4 stage model  Defines how you achieve mission/objectives  Plan ± write it down/implement/achieve objectives  Strengths  Specific goals  Less abstract  Provides structure  Context to take great ideas to action  Pushes you toward implementation ± attention to resource allocation  Weaknesses  Excludes external environment  More static than dynamic  Less flexibility .

ploy (tactics). perspective/perception (how you see yourself). pattern. position Strengths Weaknesses .What is Strategy?  Eclectic Definition What is it? Multiple aspects ± plan.

What is Strategy?  Matching Definition What is it?  Take a look at threats/opportunities and define strategies to take advantage of threats and minimize weaknesses Strengths  Not just considering inside firm. also looking at environment  Makes you look at your strengths/weaknesses  Effective at helping make decisions Weaknesses  Assumes firms can predict environment  Leaves a void of ³what to do about SWOT´ .

H. ³The Strategy Concept I: Five Ps for Strategy´ California Management Review. .Deliberate versus Emergent Strategies Unrealized Strategy Realized Strategy Sustained Superior Performance Emergent Strategy Adapted from: Mintzberg. Volume 30 Number1. Fall 1987.

Vision and Mission External Analysis Opportunities and Threats Strategic Choice SWOT Internal Analysis Strengths and Weaknesses Business Strategy Strategy Implementation/Tactics Organizational Structure Succession Planning Designing Control Systems Feedback .

Allan.Where Are We Headed?  Not focused on business strategy research Theory development Empirical testing of Theory  Application of Strategy and Strategic Management Process to Decision-making How Mike. and others use strategy concepts to help firms improve decision-making Expect you to do some reading on the theory to help with background as we explore application of the concepts .

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