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Subject:
Strategic Management and Decision Making

Narrative Report:
Chap. 9. Strategy Framework

Submitted by:

CHEMA C. PACIONES

Submitted to:
Dr. Ronaldo A. Poblete, CMITAP, CFMP, CATA, CAEA
Professor

JULY, 2020
Introduction:

In the past tactics and schemes were informally implemented as when a

person competed in a game, when an organization engaged in business, or when a

government went to war. Their actions imply an approach called strategy. But through

the years, strategy took a more formal character through individual who studied its

nature, its varied forms and modes of implementation.

Individual who studied strategy, forms, and modes of implementation, they

are;

1. Sun Tzu, a Chinese Military General Philosopher – His strategy are best written in

the book THE ART OF WAR (400BC)

2. Niccolo Machiavelli – the book of The Prince (1513)

3. Alfred Chandler - Strategy and Structure (1962)

4. Igor Ansoff’s – Corporate Strategy (1965)

5. Peter Ducker – The Age of Continuity (1969)

Michael Porter – Competitive Strategy (1980)

7. Kenichi Ohmae – The Mind of the Strategies (1982)

8. Noel Tichy – Managing Strategy Change (1982) which pertains to technical, political

and cultural strategies.

9. Peter Senge – The Fifth Disciple which pertains to expounding the strategy in

learning

10. Henry Mintzberg – The rise and fall of strategy planning.

 What is Strategy?

Strategies are plans formulated and implemented with the sole purpose of

attaining set goals and objectives. It is as a plan to be executed, a map to chart, and a path

to traverse. It is also a policy, an approach, a line attack, or a tactic.

The concept of strategy goes a long way in history. Not formally known as it is

today, strategy has been implemented since the early times. Strategy was actualized in many

forms – from the simplest to the most complicated. It was either implied or explicitly stated but

living in ruling people and in doing trade.

Due to the popularity of the word, strategy, perceptions, and thoughts evolved

through the years. Some management gurus consider strategy as a concept, an idea, a

theory, a model, or simply views and beliefs. In this section, concept that are related to

strategy will be discussed. They include the following:

1. Strategy as a Concept

A. Strategy is Intellectual Elasticity

 The concept of intellectual elasticity came from Kenichi Ohmae. Considered

as Japan’s only management guru, Ohmae wrote The Mind of the Strategies in

1982. He say’s, “Strategies stem from creative minds and not from rote memory.

There are no magic formulas for creating brilliant formulas.” Ohmae is know for

developing the concept of an idiosyncratic mode of thinking called strategic thinking.

This concept underscores that the mind of a strategist is characteristically that of

intellectual elastity. Intellectual elasticity essentially refers to flexibility and

adaptability in coming up with realistic responses to changing situationsIntellectual

elasticity essentially refers to flexibility and adaptability in coming up with realistic

responses to changing situations. When designing a business strategy, three main

players must be taken into sccount. They are the company, the customers, and the

competitors.

For Ohmae, strategy as intellectual elasticity can be best portrayed in the

following situations:

a. In launching radical iniatives, strategy is referred to as creativity.

b. In identifying the key success factors in one’s business, strategy may mean

investing additional time, money, and effort in the factors that have the greatest

potential succeed.

c. In matching the company’s unique skills to the needs of the customers, strategy is

having the flexibility to study and adapt to the environment, to segmentize, and to

concretize improvement strategies.

 d. Lastly, strategy is comparing one’’s strenghts with those of competitors and

exploiting the advantages to build on superiority.

B. Strategy is mindset

Any cycle of success begins with the organization coming up with a strategic

concept, that is, of a product or a service. It then organizes itself around the basic

product or service, and in the process, creates a culture and personality for itself. A

strategic mindset is always active and innovative. It is pulsating. It is filled with ideas.

It is alive. It is looking at the future to deal with the present.

C. Strategy is learning

One of the more widely discussed concepts of strategy today is based on

the learning organization model. Change demands learning, and learning means

continuous change learning, from an organizational perspective, is a process of

maintaning and improving performance experientially. Learning refers to any old and

new knowledge and competencies, gained or enhanced from persons, institutions,

books, experience, training, and others. Learning is not limited to personal learning.

The center of maximum learning is an organization.

Forms of Learning domains:

 Innovation – is learning new concepts and new ways of doing things. It means

creating new knowledge, new products, and new modes of thinking.

 A shade of innovation is differentiation – It is improving, enhancing, and enriching

what is existent.

 Innovation – is learning new concepts and new ways of doing things. It means creating

new knowledge, new products, and new modes of thinking.

 A shade of innovation is differentiation – It is improving, enhancing, and enriching

what is existent.

D. Strategy is natural capital

Hawken et.al. (1999) emphasized the both environmental and economic priorities

are compatible with one another. When taken in this light, natural capital create

competitive advantage. Thus, it is in this instance that strategy is considered natural

capital.

E. Strategy is Intellectual Capital

The book Intellectual Capital published in 2004, considers two categories of

knowledge. It defines common knowledge as trite and ordinary because it simply

satifies minimum expectations and knowledge.

By definition, Intellectual Capital is the synergistic confluence and

interrelationships of the organization’s valued resources. It is intangible. Although not

visible and concrete, intellectual capital can be felt. It creates impact. It can be

assessed. It is critical to attaining organizational success. It sometimes makes the

difference, but often times it is difference.

  Li is more than survival. It propels the organization to become monopolistic. It creates

leverage. I establishes dominance and brings about comparataive advantage.

 Li refers to any gain, profit, advantage, and benefits.

2. Strategy as a Tool

Aside from looking as a strategy as a concept, strategic management gurus consider

it as a tool, a mode approach by which goals can be achieved

A. Information Technology – The past 30 years the radical development of information

technology. Information technology makes work easier, more efficient, and simpler.

Hammer and Champy (1993) looked at technology as an important strategy to

moving organizations and businesses toward achieving corporate and entreprenueral

success faster.

Both authors further laid down the steps to be taken in optimizing technology:

1. Iniatially, an organization embarks on process improvement.

2. Once process improvement is in place, process design follows.

3. Lastly, when process redesign is in place, the organization can pursue business

process re-engineering.
B. Strategy as balanced scorecard – It gives organizations real measurement figures,

thereby allowing them to plan and advise ways of attaining their set goals. Two

management gurus, Robert Kaplan and David Norton, introduced the balanced

scorecard as a strategy too in their book The balanced Scorecard.

3. People as a Strategy
 Strategy is both a concept and a tool but it also people. People are strategies in

themselves.They are executives managers, managers, supervisors, subordinates, and

anyone who leads, directs and supports the organization toward the realization of objectives.

They are strategy personified.

1. People is effective management and leadership ,one prominent person who has been

considered as the “guru of all management gurus” is Peter Drucker. Having 38 books

and many articles on management and strategy. His book The Practice of

Management (1968) is considered todays as the first true management book

written where he extensively discussed what management is, its practice, and the

role of managers. There are various examples of individuals who exemplify

strategy as both effective management and leadership:

a. Alfred Sloan– was a professional manager. He was well known for his service at

General motors in the 50’s and 60’s. He spelled out the role of manager as a leader

and a decision-maker. He studied management as a discipline and believed that a

chief executive should have not friends on jobs.

b. Harold Geneen- Is said to be the greatest business manager after Sloan. He

worked for International Telephone and Telegraph Company (ITTC), a Cuban

company in 1959. He stayed there for 18 years and expanded ITTC to other parts

of the world.
 c. Le Laccoca-is one of the most widely read biographies in management and

leadership. Lacocca had wonderful administrative ideas that are workable. He

worked for Henry Ford, and one of his best car products was the mustang.

d. Jack Welch- was an Irish chemical engineer with a PhD in chemical engineering

from the University of Illonoise. He succeed Reginald Jones as CEO of General

Electric.

2. Strategy is creativity – One realizes that the challenge today for evry organization is

creativity. In short, opportunities arearound; it is the creative mind that wins. Creativity is

strategy and strategy is creativity.

3. Strategy is monopolistic intellectual capital – As mentioned earlier, strategy is

intellectual capital. It is a competitive advantage that is created by organizations to be in

the forefront of any business and industry. When Intellectual Capital is monopolistic, one-

of-a-kind, or the only one, then it is a unique strategy.