100%(8)8 out of 8 people found this document helpful
This preview shows page 1 - 4 out of 37 pages.
Summary: Book "Contemporary Strategy Analysis", Chapter1-16Strategic Management (Universiteit van Amsterdam)Verspreiden niet toegestaan | Gedownload door Elmira van den Broek ([email protected])lOMoARcPSD
H1: The concept of strategy College 1 What is strategy? A way to reach long term goals ... … based on creating and sustaining competitive advantage …… by balancing the firm’s resources and its environmental situationDefinition: strategy is a unifying theme that gives coherence and direction to the actions and decisions of an individual or an organization Grant (1995) “unambiguous long term goals”“insightful understanding of the external environment”“the overall plan for deploying resources to establish a favourable position.”Bain & Company “a proprietary set of actions that better serve customers than thecompetition”“the science of allocating scarce resources”C Smith (2003) In theory - strategy leads to profits In practice –profits are justified as a good strategy The basic strategy framework: Michael Porter (1996), ‘What is Strategy?’Operational effectiveness is not strategy The essence of strategy is choosing to perform activities differently than rivals do A sustainable strategic position requires trade-offs Strategy is the creation of a unique and viable position The essence of strategy: Winning (at one point in time) Maintaining fitness (over time) Strategic fit= refers to the consistency of a firm’s strategy, first with the firm’s externalenvironment and second with its internal environment. (especially goals and values and resources and capabilities). It also relates to the internal consistency among the different elements of a firm’s strategy. Activity system= the notion of internal fit is central Contingency theorypostulates that there is no single best way of organizing or managing. The best way to design, manage and lead an organization depends upon circumstances, in particular the characteristics of the organization environment. Verspreiden niet toegestaan | Gedownload door Elmira van den Broek ([email protected])lOMoARcPSD
Five schools of thought: Prescriptive o1960s: The design school o1970s: The planning school o1980s: The positioning school o1990s: The resource-based school Descriptive o1980s onwards: The process school Types of strategy: Corporate strategy Competitve (business) strategy Where to compete Parent level Portfolio decisions How to competeSBU levelCompetitive advantageCorporate strategydefines the scope of the firm in terms of the industries and markets in which it competes. Corporate strategy decisions include choice over diversification, vertical integration and acquisitions.