CH 1-1: 전략과 전략 경영 과정은 무엇인가 ?

MCI Communications, Inc., Mission Statement MCI’s mission is leadership in the global telecommunications services industry. Profitable growth is fundamental to that mission, so that we may serve the interests of our stockholders and our customers. To maintain profitable growth, MCI will: provide a full range of high- value services for customers who must communicate or move information electronically throughout the United States and the world; manage our business so as to be the low-cost provider of services; make quality synonymous with MCI to our growing customer base; set the pace in identifying and implementing cost-effective technologies and services as we expand our state-of-the-art communications network; continue to be an entrepreneurial company, built of people who can make things happen in a competitive market place.

1. Hierarchical Definitions Strategy is defined as the way that a firm attains its objectives or fulfills its mission, and strategic management is the process by which a firm’s mission and objectives are decided, how its specific strategies are chosen, and how those strategies are implemented through specific policies or tactics.

2) Components 1. Mission 2. Objective 3. Strategies 4. Tactics/Policies

3) Strengths 1. Link between strategy and performance 2. Multiple levels of analysis 3. Translate their mission into actions

4) Weaknesses 1. Underdeveloped notion of the competitive environment’s impact 2. Formal, bureaucratic strategy making processes 3. No guidance to managers

2. Eclectic Definitions 1. It includes a much wider range of organizational phenomena than would be included in the hierarchical definition. It concerns about multiple characteristics of strategy.

2) Components 1. Strategy as: Plan Ploy Pattern Position Perspective

3) Strengths / Weaknesses 1. S: It can help managers become aware of opportunities that a rigid commitment to hierarchically derived strategies would ignore. 2. W: Since any idea or action that might exist in a firm can be thought of as a strategy, the study of strategy is not limited to any specific phenomena.

3. Matching Definitions 1. Definition: A firm’s strategy is defined as actions that the firm takes to respond to threats and opportunities in its environment while exploiting its strengths and avoiding or fixing its weaknesses.

2) Strengths 1. Recognizing a firm’s environment 2. Recognizing a firm’s internal strengths and weaknesses 3. Emphasizing the allocation of resources to implement strategies

3) Weaknesses 1. Emphasizing formal, intended rather than emergent strategies 2. Providing little guidance

Definition 1. Strategy is a pattern of resource allocation that enables firms to maintain or improve their performance. A “good” strategy is a strategy that neutralizes threats and exploits opportunities while capitalizing on strengths and avoiding or fixing weaknesses.

Is Operational Effectiveness not Strategy or not? Companies must be flexible to respond rapidly to competitive and market changes. They much achieve OE to be competitive in the world market. OE is necessary but not sufficient

Overall advantage or disadvantage results from all a company’s activities, not only a few. OE means performing similar activities better than rivals perform them. In contrast, strategic positioning means performing different activities from rivals’ or performing similar activities in different ways.

What are the Problems on the Competition based on OE? 1. To upgrade OE companies should invest on new equipment, research that means that most productivity gains are being captured by customers and equipment suppliers. 2. Competition based on OE alone is mutually destructive.

Is a Strategic Position enough? Choosing a unique position is not enough to guarantee a sustainable advantage. A valuable position will attract imitation by incumbents, who are likely to copy it in one of two ways. First, a competitor can reposition itself to match the superior performer. Second is straddling.

A Sustainable Strategic Position requires Trade-offs 1. Inconsistencies in company’s image or reputation 2. Different positions require different product configuration, different equipment, different management system 3. Limits on internal coordination and control