Chapter 1 The Concept of Strategy Team 1 - 4380 Ashlyn Hargraves Hunter Bernays Sofia Maese Kyle Gooch Martin Gutierrez FS1

Introduction To Strategy What is a strategy and what is its purpose? Definition: A unifying theme that gives coherence and direction to the actions of an individual or an organization Strategy is all about success Origin of Strategy Originated from 500 BC where it was first used in Sun Tzu’s book The Art of War Derived from military purposes and was transformed for business purposes Strategy is not Planning Strategy is not a detailed plan of tactics Strategy is an overall theme

Introduction Continued Four common factors of strategic success Simple, long term, and consistent goals Thorough understanding of the competitive environment Objective appraisal of resources Effective implementation

Evolution of Business Strategy Corporate Planning Developed in the 1950’s Also known as long term planning Strategic Management Evolved from corporate planning in the 1970’s Increased focus on environmental competition Competitive advantage became the primary goal Resource Based View Shifted focus from the source of profits externally to focusing on the sources of profit from inside the firm

Strategy Today Motivation of profits shift Firm as Property VS. Firm as Social Entity

Case Studies Lady Gaga James Dyson Alex Ferguson Will King

Strategy as direction A powerful sense of direction is essential Even more important in uncertain environments Clear direction can differentiate a company Emergent Strategy

Strategy and Success Simple, long term goals Understanding the environment Objective analysis of strengths and weaknesses Implementing your strategy

Strategic Roles Strategy as a target in the case of Dyson and King Strategy as orientation in the case of Alex Ferguson

Current Event WSJ: Why Obama’s Middle East Policy Is Failing Obama made the case to Congress to authorize the use of military force in the war against ISIS stating, "Our coalition is on the offensive, ISIL is on the defensive and ISIL is going to lose." Focusing on Islamic State alone leaves the undesirable influence of civil wars to drag the surrounding countries in the region deeper into disaster. Problems of the Middle East stem from the failure of the post-World War II Arab state system. This had led to power vacuums, state collapse and civil wars.

Current Event Solution? Since 1945, over 20% of the approximately 150 civil wars have ended in negotiated settlements. This number has increased to 40% after 1991. Neither in Iraq or Syria, has the United States or its coalition partners began to put in place external peacekeeping forces that could convince Iraqis and Syrians to trust that the changes would last.

EY 2013 Purpose and energy Policy Reform Internal Changes Relationships Globalization Policy Reform Internal Changes Company Name Logo Purpose

EY 2014 A year of change 7 drivers of Growth Core Values Nationalism People Financing Digital Transactions Operations Risk Customers

EY 2015 A better working world Six major trends Internal effect Multi-disciplinary Model Quality Assurance Professional Practice Assurance Sustainable Audit Quality Technology and Training Global economy

Industry strategy The trend that has surfaced over the past few years in regards to the industry’s competitive strategy has been more acquisition among the big four. They have put a demand on acquiring consulting businesses, this has led to more diversity and recent success throughout the firms. In the past the firm’s main focus was auditing. In addition to this technology is taking over many of the tasks done by individuals and it has forced companies to comply and adapt to the advances. A successful strategy that the industries have incorporated is adding more diversity among the workforce,this includes hiring different professions rather just being focused on accountants.

Consulting Acquisition

References http://www.ey.com/Publication/vwLUAssets/EY_Global_review_2013/$FILE/EY_Global_review_2013.pdf http://www.ey.com/Publication/vwLUAssets/EY_Global_review_2014/$FILE/Global_review_2014.pdf http://www.ey.com/Publication/vwLUAssets/EY_Global_review_2015/$FILE/EY_Global_review_2015.pdf Grant, R. M., & Jordan, J. (2012). Foundations of strategy (Chapter 1). Hoboken, NJ: Wiley and Sons. http://www.economist.com/news/business/21589435-big-consulting-and-accounting-firms-are-making-risky-move-strategy-work-strategic- moves http://www.wsj.com/articles/why-obamas-middle-east-policy-is-failing-1455579038