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ORIGINS OF STRATEGY WEEK 1 - Coggle Diagram
ORIGINS OF STRATEGY WEEK 1
DEFINITION
Intelligent allocation of limited resources through a unique system of activities to outperform the competition Howarth 2014
About being different. It means deliberately choosing a different set of activities to deliver a unique mix of value Porter
No serious organization could imagine being without one Freedman 2015
Strategy V Tactic
Strategy is overall direction of an organization. Resources to achieve competitive advantage, planning, large scale, why, difficult to copy, long time frame
Tactics specific action or plan, doing, smaller scale, how, easy to copy, short time frame
HISTORY
WWII planners moved to US firms
1950's & 60's grow in complexity, corporate planning (forecasts)
1990's shift from planning to strategy (market selection & competitive positioning)
1990's Resources & capabilities view, source of competitive advantage & resulting strategy
2000's Strategic innovation Tom Peters, leapfrog products to customers ahead of rivals
1970's & 80's Industrial Organisation Economics
CHARACTERISTICS
Consistent & long-term
goals
understand competitive
environment
objective appraisal of
resources
effective
implementation
DEFINITIONS
STRATEGIC FIT
Consistency
of a firm's strategy with 1
external
environment 2
internal
environment (goals & values, resources & capabilities)
CONTINGENCY THEORY
No single best way of managing or organising, depends on circumstances
WHY NEED STRATEGY?
1 Decision support
Constrains range
allows
knowledge
to be pooled & integrated
facilitates use of
frameworks
& analytical tools
2 Co-ordinating Device
Communication device
Statement of strategy
CEO communicates identity, goal & positioning to all members
3 Target
Strategic Intent
misfit between resources & ambitions, close the gap by building new competitive advantage
forward looking to motivate & inspire
WHERE IS STRATEGY?
Heads of managers
Speeches & written documents(observable)
decisions (observable)