STRATEGY

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STRATEGY

• SOM 122
• Ken A. Smith
• Associate Professor
• Strategy Human Resources
• September 24, 2001

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Why do Businesses Exist?

• Depends on whom you ask!
• Owners
• Customers
• Employees
• Local community
• Government

Many stakeholders with many claims
the strategist must manage all claims
concurrently.
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What is Strategy?

• Strategy is the determination of the basic
  long-term goals and objectives of an organization
  and the adoption of courses of action and the
  allocation of resources necessary for carrying
  out these goals (Alfred Chandler, 1962).
• Strategy is a pattern in a stream of decisions
  (Henry Mintzberg, 1979).

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Strategy as a Pattern
Deliberate Strategy
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Hierarchy of Strategy
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Elements of the Strategy Process
Determine mission, objectives, and current
strategy
Determine mission, objectives, and current
strategy
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Mission Defining the Business
What are their needs?
Who are my customers?
Business Definition
What are my distinctive com- petenencies?
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Elements of the Strategy Process
Determine mission, objectives, and current
strategy
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Analyzing the Environment
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Elements of the Strategy Process
Determine mission, objectives, and current
strategy
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Building Blocks of Competitive Advantage

• Competitive
• Advantage
• Low Cost
• Differentiation

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Elements of the Strategy Process
Determine mission, objectives, and current
strategy
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Generic Strategic Alternatives
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Elements of the Strategy Process
Determine mission, objectives, and current
strategy
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Elements of the Strategy Process
Determine mission, objectives, and current
strategy
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Why is Strategy Important?

• Gives the organization a sense of purpose and
  direction.
• Helps coordinate the activities of people and
  functions in the organization.
• Serves as a control device by motivating people
  and holding them accountable.
• An effective strategy process creates ownership
  through participation.

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Why is Strategy Important to YOU?

• Provides an integrating framework for your
  business studies.
• Skills developed are broadly applicable.
• Model is flexible and can be applied to your own
  career planning.
• Your job in your organization is strategic.
• Those who think and act strategically, who add
  value to the firm, progress rapidly.

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Thank you!