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Strategic Management

Session-1

Strategy Military Origin


The concept of strategy is ancient and originated
in the study of success in war.
The word strategy comes from the Greek stratos
(army) and agein (to lead).
The strategos in Athens was an elected general.

Strategy
Mintzberg (1987) defines strategy in terms of 5Ps. These 5Ps are:
1P Plan: is a direction, a guide or a course of action from the
present (or from the past) and into the future. However that
future is defined by whatever the time horizons associated with it.
2P Ploys: are the competition strategies designed to maintain,
reinforce, achieve or improve the relative competitive position of
the organization within its sector and markets)
3P Patterns: are the consistency of firm decision making.
4P Position or positioning: where the firm locates itself within its
external and competitive environments; and by which it positions
particular products or services against the demands of the market
segments it serves .
5P Perspective: is the main business concept or idea and the means
by which that concept or idea is put into practice or implemented.

Strategy as Plan
Strategy is an intended, well planned and
consciously followed course of action. The
strategy is made in advance of its
implementation and is followed up by actual
implementation and development - also called
deliberate strategy.

Strategy as Ploy
A ploy is usually a maneuver in a competition
or a game, one that is taken to get the better
of your competitor. Ploys are usually
undertaken to deter competitors from
entering the market, for example by building
new facilities with plenty capacity, or lowering
prices.

Strategy as Pattern
It may be possible to look back at what has
happened, and describe a companys strategy
in terms of a pattern that emerged
The degree of consistency in companys
strategic actions defines companys strategy
This definition focuses on strategic outcomes
rather than planning.
Apple reacts to competitive challenges by
innovating

Strategy as Position
Strategy is also a positionspecifically, a means
of locating an organization in its "environment."
In ecological terms, strategy becomes a "niche";
in management terms, a product-market
"domain." Position is usefully identified with
respect to competitors (literally so in the
military, where position becomes the site of the
battle)

Strategy as Perspective
While position looks out, seeking to locate the
organization in the external environment, perspective
looks inside the organization. Here, strategy becomes the
ingrained way of perceiving the world and defining self.
Strategy is the way a company views itself in the world,
through the eyes of its management and employees.
Strategy can be defined in terms of the corporate
personality and culture a company has adopted over
time.
Mid-90s internet was viewed as tool for communication Jeff Bezoz viewed it as a sales channels - Amazon

What is Strategy?
A companys strategy consists of the set of
competitive moves and business approaches that
management is employing to run the company
Strategy is managements game plan to
Attract and please customers
Stake out a market position
Conduct operations
Compete successfully
Achieve organizational objectives

Strategy -Definition
High level plan to achieve one or more goals
under conditions of uncertainty