TheSTRATEGY CONCEPT

TheSTRATEGY CONCEPT

An Introduction To Strategic An Introduction To Strategic ThinkingThinking

QuestionsQuestions

What is strategy?What is strategy? What does it mean to think strategically?What does it mean to think strategically? What is the value of strategic thinking?What is the value of strategic thinking?

What Is Strategy?What Is Strategy?

Derivation from the Greek work “strategos” Derivation from the Greek work “strategos” – “a general”– “a general”

Greek verb Greek verb stratego stratego means to “plan the means to “plan the destruction of one’s enemies through destruction of one’s enemies through effective use of resources”effective use of resources”

Many different definitions are possible.Many different definitions are possible.

1. What is Strategy? 1. What is Strategy?

Strategy is a LOT like Sailing------Strategy is a LOT like Sailing------

Sailing RaceSailing Race

What do we need?What do we need?

Place to go--------Place to go--------GOALGOAL

Sailing Race-- Strategy ElementsSailing Race-- Strategy Elementsplace to go place to go GOAL GOAL sailing plan, navigation sailing plan, navigation PLAN PLAN charts, timetablecharts, timetableboat, supplies, money, boat, supplies, money, RESOURCESRESOURCES food, informationfood, informationcaptain, decision-makercaptain, decision-maker LEADERSHIPLEADERSHIPprocedures, measurementprocedures, measurement SYSTEMSSYSTEMSpeople, skills, experience people, skills, experience STAFF/SKILLSSTAFF/SKILLSdecisions, tasksdecisions, tasks STRUCTURESTRUCTUREnorms, culturenorms, culture CORE VALUESCORE VALUES

Elements of Strategy: Elements of Strategy:

7 S’s-- must FIT together7 S’s-- must FIT together

strategystrategy

systemssystems structurestructure

superordinatesuperordinate

goalsgoals

skillsskills stylestyle

staffstaff

Sailing RaceSailing Race

Having designed our Strategy--Having designed our Strategy--

We set sail….. What happens???We set sail….. What happens???

Sailing RaceSailing Race

StartStart

FinishFinish

Sailing RaceSailing Race

StartStart

FinishFinish

1. What is Strategy?1. What is Strategy?

intendedintended strategy-- plan for action strategy-- plan for action emergentemergent strategy-- process strategy-- process realizedrealized strategy--- outcome strategy--- outcome

- source- Henry Mintzberg, 1987- source- Henry Mintzberg, 1987

Some Useful Definitions of Some Useful Definitions of StrategyStrategy

Some Useful Definitions of Some Useful Definitions of StrategyStrategy

Strategy as the determinant of the long-term Strategy as the determinant of the long-term goals of the enterprise. - goals of the enterprise. - ChandlerChandler

Strategy as the pattern of objectives, Strategy as the pattern of objectives, purposes, or goals and plans for achieving purposes, or goals and plans for achieving these goals. - these goals. - AndrewsAndrews

Strategy as the common thread among a Strategy as the common thread among a firm’s activities. -firm’s activities. - Ansoff Ansoff

Strategy is a pattern in a stream of Strategy is a pattern in a stream of actionsactions over time.over time.

Strategy is a pattern in a stream of Strategy is a pattern in a stream of actionsactions over time.over time.

Mintzberg’s DefinitionMintzberg’s DefinitionMintzberg’s DefinitionMintzberg’s Definition

What Is Strategy?What Is Strategy?

All definitions involve an integration of the past All definitions involve an integration of the past and present to create the future.and present to create the future.

If we are passive, we must accept the future that If we are passive, we must accept the future that comes to us, whether we like it or not.comes to us, whether we like it or not.

Strategy implies active participation in the Strategy implies active participation in the creation of a future that we desire.creation of a future that we desire.

Different Kinds of StrategyDifferent Kinds of Strategy

Intended StrategyIntended Strategy

Intended StrategyIntended Strategy

Unrealized Unrealized StrategyStrategy

DeliberateDeliberate

Different Kinds of StrategyDifferent Kinds of Strategy

Intended StrategyIntended Strategy

Unrealized Unrealized StrategyStrategy

EmergentEmergent StrategyStrategy

DeliberateDeliberate

Different Kinds of StrategyDifferent Kinds of Strategy

Intended StrategyIntended Strategy

Unrealized Unrealized StrategyStrategy

EmergentEmergent StrategyStrategy

DeliberateDeliberate

RealizedRealizedStrategyStrategy

Different Kinds of StrategyDifferent Kinds of Strategy

The Five P’s The Five P’s The Five P’s The Five P’s

PloyPlan

PatternPosition

Perspective

Thinking StrategicallyThinking Strategically

Military StrategyMilitary Strategy

Military Axioms on Military Axioms on Effective StrategyEffective Strategy

Military Axioms on Military Axioms on Effective StrategyEffective Strategy

Have clear, decisive objectives.Have clear, decisive objectives. Maintain the initiative.Maintain the initiative. Concentrate resources.Concentrate resources. Be flexible.Be flexible. Have coordinated and committed leadership.Have coordinated and committed leadership. Achieve surprise.Achieve surprise. Have an element of security.Have an element of security.

Thinking StrategicallyThinking Strategically

Military StrategyMilitary Strategy

Business StrategyBusiness Strategy

Corporate StrategyCorporate Strategy

•Product/Market Scope

•Growth Vector

•Competitive Advantage

•Synergy

What is the value of strategic What is the value of strategic thinking?thinking?

Next WednesdayNext Wednesday

Honda case write-up due. Spend some time Honda case write-up due. Spend some time thinking about Honda’s “realized strategy” thinking about Honda’s “realized strategy” came about. Analysis is important.came about. Analysis is important.

Questions??Questions?? See ya next Wednesday – Enjoy the long See ya next Wednesday – Enjoy the long

weekend!weekend!