strategy

Examples of strategy in the following topics:

• What is Strategy?

  • Another way to keep score of a strategy is to visualize it using a strategy map.
  • Rumelt described strategy as a type of problem solving.
  • Strategy as pattern: a consistent pattern of past behavior with a strategy realized over time rather than planned or intended (where the realized pattern was different from the intent, Mintzberg referred to the strategy as emergent)
  • Strategy as ploy: a specific maneuver intended to outwit a competitor
  • Strategy as perspective: executing strategy based on a "theory of the business" or a natural extension of the mindset or ideological perspective of the organization

• Porter's Competitive Strategies

  • Michael Porter classifies competitive strategies as cost leadership, differentiation, or market segmentation.
  • These three strategies are defined along two dimensions: strategic scope and strategic strength.
  • Firms in the middle are less profitable because of the lack of a viable generic strategy.
  • Porter's three strategies can be defined along two dimensions: strategic scope and strategic strength.
  • Discuss the value of using Porter's competitive strategies of cost leadership, differentiation, and market segmentation

• Global Strategy

  • Global strategy, as defined in business terms, is an organization's strategic guide to pursuing various geographic markets.
  • Global strategy, as defined in business terms, is an organization's strategic guide to pursuing various geographic markets.
  • A global strategy should address the following questions: What should be the extent of an organization's market presence in the world's major markets?
  • Global strategies require firms to coordinate tightly their product and pricing strategies across international markets and locations; therefore, firms that pursue a global strategy are typically highly centralized.
  • Explain the concept of global strategy within the context of international business and a globalized economy

• Differences Between Strategic Planning at Small Versus Large Firms

  • The effectiveness of a strategy is heavily dependent upon the size of the organization.
  • Large firms such as McDonald's often achieve better scale economies and thus can pursue low-cost strategies.
  • This requires fluidity in strategy while simultaneously maintaining a predetermined vision and mission statement.
  • In most cases, low-cost strategies require substantial economies of scale.
  • This image is an example of a strategy map that organizes a firm's stakeholder interests.

• The Overall Strategy

  • A strategy is a plan of action designed to achieve a specific goal.
  • Strategic planning is an organization's process of defining its overall strategy, or direction, and making decisions on allocating its resources to pursue this strategy.
  • Strategy is a plan of action designed to achieve a specific goal.
  • The combination of these factors constitute the overall strategy.
  • Recognize the key components encompassed within the context of overall strategy

• Overview of Inputs to Strategic Planning

  • Under the broad corporate strategy are business-level competitive strategies and functional unit strategies.
  • Corporate strategy refers to the overarching strategy of the diversified firm.
  • Business strategy refers to the aggregated strategies of a single business firm or a strategic business unit (SBU) in a diversified corporation.
  • Functional strategies include marketing strategies, new-product development strategies, human resource strategies, financial strategies, legal strategies, supply-chain strategies, and information-technology management strategies.
  • Each functional department attempts to do its part to meet overall corporate objectives, so to some extent their strategies are derived from broader corporate strategies.

• Making Strategy Effective

  • Johnson, Scholes, and Whittington suggest evaluating the potential success of a strategy based on three criteria:
  • Suitability deals with the overall rationale of the strategy.
  • A suitable strategy should derive competitive advantage(s).
  • Will Mulcaster argued that while research has been devoted to generating alternative strategies, not enough attention has been paid to the conditions that influence the effectiveness of strategies and strategic decision-making.
  • A firm may perform a break-even analysis to determine if a strategy is feasible.

• The Resource-Based View

  • In the resource-based view (RBV), strategic planning uses organizational resources to generate a viable strategy.
  • If the firm's strategy emphasizes and accomplishes this goal, its resources can help it sustain above-average returns.
  • In many ways, business strategy aims to achieve competitive advantage through the proper use of organizational resources.
  • The value factor requires that the costs invested in the resource remain lower than the future rents demanded by the value-creating strategy.
  • Describe the intrinsic competitive advantage defined by the resource-based view strategy

• The Importance of Strategy

  • Strategy is inherently linked to a company's mission statement and vision; these elements constitute the core concepts that allow a company to execute its goals.
  • The company strategy must constantly be edited and improved to move in conjunction with the demands of the external environment.
  • As a result of its importance to the business or company, strategy is generally perceived as the highest level of managerial responsibility.
  • The implications of the selected strategy are also highly important.
  • This strategy map illustrates an example of how product improvements are designed and implemented.

• Strategic Management

  • Strategy, in short, is the overarching methodology behind the business operations.
  • While many management models pertaining to strategy derivation are in use, most general frameworks include five steps embedded in two general stages:
  • Strategy Formation – Following the analysis phase, the organization selects a generic strategy (for example, low-cost, differentiation, etc.) based upon the value-chain implications for core competence and potential competitive advantage.
  • Feedback – During the final stage of strategy, all budgetary figures are submitted for evaluation.
  • This information will be used to restart the planning process, or reinforce the success of the previous strategy.