Strategy
Strategy Alviar, Gizelle T. Canete, Michelle GraceDamian, Hazel
T.Emperado, Yvonnie Caryl A.Larocco, Ariele Nichelle C.Miranda,
Kaye Crystal A.Oh, Carmela Joyce M.Pamotongan, Rochelle Salzar,
Mary Antonette R.Sarzosa, Raelyn
What is Strategy?Greek word strategos which means the art of the
general.Conditions in the environment may effect the goal or
objective to strategy.Not a substitute for management.Can never be
perfect, flawless, and optimal because it is made in response to a
certain situation.Good strategy make allowances for possible
miscalculations and unanticipated events.What is Strategy?Strategy
is define in many perspective:Strategic GoalBattle PlanMethod of
facing competitionIt is a set of integrated decisionWhat is
Strategy?It involves two major processes:FormulationInvolves
analyzing the environment or situation, making a diagnosis, and
developing guiding policies. It includes such activities as
strategic planning and strategic thinking.ImplementationRefers to
the action plans taken to achieve the goals established by the
guiding policy.Levels of StrategyCorporate StrategyBusiness
StrategyFunctional StrategyLevels of StrategyCorporate
StrategyFulfills the mission and vision of the company. It
generally analyzes the whole system on the basis of participation
of the different business units. It also establish the framework by
which all other strategies are formulated and implemented.Levels of
StrategyBusiness Strategyit is a set of decisions that provides
ways on how the organization competes in the industry it chooses to
be in and eventually sustains a competitive advantage.Levels of
StrategyFunctional StrategyIt comprises of decisions in the
different functions of the organization that support the business
strategy. It is also called operational strategies, they translate
the strategies in the corporate and business levels to departmental
or functional units.StrategyA good strategy can be a boundary
marker that defines what a company does and what it does not
do.
A good strategy should restrict the company not to doing what it
does best but rather to what it does better than any other company;
which may be different from what it does best.
What is strategy?-Actual documents and announcements from well
respective companies:Our strategy is to be a low cost provider
We are pursuing a Global Strategy
The company strategy is to integrate a set of regional
acquisition
Our strategy is to provide unrivalled customer service
Our strategic intent is to always be the first mover
Our strategy is to move from defence to industrial
applicationsWhat do these strategy statements have in common?
None of them are actually strategies, they represent tactics,
goals, on objectives and descriptions but not strategies. They are
mere strategic threads, small components of overall strategies
The problem is that in recent years strategy has become
something of a buzz word, whenever we want to sound smart and
demonstrate our business acumen we just make sure the word strategy
shows up in our ideas.
Result is that we now refer to many mundane and uninteresting
aspects of the business as being strategic, when they are really
only small pieces of the overall business strategy.
4 Fundamental Questions:
1. Where do we compete?Attractive market opportunity and
resources required to serve the market needsWhat competitive arenas
or markets will the firm be active in, we define markets as
industries, product markets within those industries and geographic
markets.
2. What unique value do we bring?Why do our customers choose our
products and services when they could have chosen the products and
services of any other competitor.
Unique value could be cost or differentiation which includes
image, customization, styling, reliability, etc
3. What resources and capabilities do we utilize to deliver that
value?
Resources and capabilities that enables our company to serve the
market opportunity better than any other competitor.Resources could
be tangible or intangible(skills)Example: Exceptional human
capital, superior technology, unrivalled network connection or
unique reputationCapabilities refer to the things we can do or our
ability to use the resources that we have
4. How do we sustain our ability to provide the unique
value?
Are there barriers to imitation?Are there factors to keep our
competitors for being willing or able to replicate the value we
create for our customers.These questions helps us to answer what
factors can allow us to continue to win overtime.
The word strategy originally comes from the greek word strategos
meaning Art of the General
In other words, the origin of strategy comes from the art of
war, specifically the role of the general in a war.
Famous treaties entitled The Art of War by Suntzu, a legendary
chinese general
Strategist considered the art of war to be one of the great
masterpieces on strategy.
In the art of war the goal is to win.
From well known strategists: Henry MintzbergDifference between
an intended strategy, an emergent strategy and a realized
strategySometimes strategy is really more about what you actually
do rather than what you intend to do; Your real strategy emerges as
you do it
Staging or TimingA firm may have a great plan but if you execute
the plan with poor timing it may fall flat.To be successful you
also need to have a well-orchestrated set of time steps in order to
win in the market place
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