Chapter 1 - What is Strategy? Flashcards
What was Drucker’s (1954) definition of Strategy?
“Analysing the present situation and changing it if necessary. Incorporate finding out what one’s resources are or what they should be”.
(Focuses on inward focus and the internal environment).
What was Mintzberg’s (1978) definition of Strategy?
“Strategy is a pattern in a stream of decisions”.
Relates to hindsight and how strategy is emergent & unplanned
What was Porter’s (1996) definition of Strategy?
“The essence of strategy is choosing what not to do”.
All about planned positioning and trade-offs
What are the 4 considerations used to analyse strategy?
1) Focus/commitment to long term goals.
2) High level understanding of the competitive environment.
3) Appraisal/development of resources.
4) Effective implementation.
What was Peter Drucker’s advice around implementing strategy?
“We must learn to be the CEO of our own career”.
I.e. we need to show we are determined/committed and hungry.
What were Grant’s limitations of the SWOT model?
Worthwhile/correct to break down internal factors into S/W and external factors into O/T.
BUT:
Sometimes not a clear distinction.
Sometimes elements of both.
E.g. Ronaldo -> Manchester United transfer
Per Grant, what is Strategic Fit?
“Consistency of a firm’s strategy with their external environment AND internal environment”.
I.e. with both goals/values AND Rs/Cs
This helps to create a consistent strategic position and direction for development.
What was Grants definition of Strategy?
“Strategy is the mean by which individuals or organizations achieve their objectives”.
What is the purpose of strategy?
1) Assists effective management.
2) Enhances quality of decision making - helps channel options to those aligned with strategy.
3) Facilitates coordination.
4) Focuses attention on achievement of long term goals.
Who used the term “Strategic Intent”?
Gary Hamel and C.K.Prahalad
All about desired strategic intent.
What are the 2 fundamental Qs relating to strategy?
1) Where to compete?
2) How to compete?
What are the 2 major areas of a firm’s strategy?
1) Corporate Strategy - industries/markets you are competing in, M&As considered, integration considered, diversification considered.
2) Business Strategy - how exactly the company competes, how they achieve their CA.
How do you describe strategy/ how a company is competing in broad terms?
1) Whether seeking cost advantage
OR 2) a differentiation advantage
All about how a firm is using their distinctive Rs & Cs to establish their competitive advantage.
What strategies does Henry Mintzberg distinguish between and how?
1) Intended Strategy - as conceived by the leader/senior member, due to inspiration/ planning/ negotiation.
2) Emergent Strategy - Primary determinant of aa realized strategy. These are decision that emerge when managers interpret the intended strategy and have to adapt to changing circumstances.
3) Realized Strategy - actual strategy implemented - often only partly related to what was intended.
What are the general limitations of analysing strategy?
There’s no set algorithm/formula that determines the optimal strategy to adopt.
Analysing strategy aims to consider relevant issues rather than offering any solutions.
