Vorlesung 1 - Concept Of Global Strategy Flashcards
What are the common elements of a successful strategy?
1) long-term, simple, and agreed objectives
2) profound understanding of the competitive environment
3) objective appraisal of resources
4) effective implementation
What is the origin of the word „strategy“?
The word strategy comes from the Greek word „strategos“, meaning „the art of the general“
What is strategy as a plan according to Von Clausewitz?
Strategy involves drafting the plan of war, shaping individual campaigns and deciding on individual engagements
How does Porter define strategy as action?
Porter defines strategy as the creation of a unique and valuable position by making trade-offs and creating a fit among a company’s activities
What is Chandler’s definition of strategy as integration?
Strategy is the determination of long-term goals and the allocation of resources necessary for achieving them
What are the 3 roles of strategy?
1) decision support -> improves decision making
2) Coordination and communication-> creates consistency
3) Target -> improves performance by setting high aspirations
What is the definition of “global strategy” ?
Global strategy refers to the strategies of firma worldwide, including both international and domestic strategies in both developed and emerging economies
What are the 3 different contexts that influence strategy?
1) industry-based competition
2) firm-specific resources and capabilities
3) institutional conditions
What is the framework for strategy analysis?
It includes the internal environment (resources and capabilities, structure and systems) and the external environment (competitors, customers, suppliers, formal and informal rules, culture)
What is the difference between corporate and business strategy?
Corporate strategy focuses on which business a firm should be in and its rate of returns, while business strategy focuses on how to complete and gain a competitive advantage in those markets
What are the static and dynamic elements of strategy?
Static: Where and how the firm is competing
Dynamic: What the firm wants to become, achieve, and how it will get there
What is Mintzberg’s critique of formal strategic planning?
1) the fallacy of prediction
-> future is unknown
2) the fallacy of detachment
-> formulation cannot be divorced from implementation
3) the fallacy of formalization
-> inhibits flexibility and learning
What are the benefits of strategy analysis in formulation?
1) improves decision processes
2) identifies key issues
3) manages complexity
4) enhances flexibility and innovation through learning
