1 Strategy and Success IDIS 424 Spring 2004

2 What Is Success?

3 Examples Of Success Madonna General Giap and the North Vietnamese armed forces

4 Neither Madonna nor General Giap had superior resources. How did they achieve success?

5 The Role Of Strategy In Success Goals that are simple, consistent, and long-term Profound understanding of the competitive environment Objective appraisal of resources Effective implementation

6 Elements Of Success Goals Madonna Single-minded quest for stardom & world-wide renown Giap Reunify Vietnam under communist rule

7 Elements Of Success Understanding the Environment Madonna Detects emerging trends in popular culture. Giap Intimate knowledge of terrain. Recognized U.S. political weakness

8 Elements Of Success Resource Appraisal Madonna Recognized limited raw talent. Relied on PR and networking. Giap Recognized economic & military weaknesses. Aware of political strengths.

9 Elements Of Success Implementation Madonna Committed to hard work. Attention to detail. Control. Giap Tight control. Long-term commitment. Effective propaganda. Inspirational leader.

10 SUCCESSFUL INDIVIDUALS SHARE THE FOLLOWING IN PURSUIT OF THEIR ENDEAVORS  They have clear, long-term career objectives  They know their environment  They know themselves well  They pursue their careers with commitment, consistency, and determination

11 Development of Business Strategy Antecedents based upon military strategies which extend the principles of: Julius Caesar Alexander the Great Sun Tsu Von Clausewitz Note differences between a strategy and a tactic

12 Strategy -- An overall plan for deploying resources Tactic -- A scheme for a specific action

13 Strategic Decisions  Important  Involve significant commitment or resources  Not easily reversible

14 Strategy Making: Design or Process ? Strategy as DesignStrategy as Process Planning and Rational choice Many decision makers responding to multitude of external and internal forces Mintzberg’s Critique of Formal Strategic Planning:  The fallacy of prediction – the future is unknown  The fallacy of detachment – impossible to divorce formulation from implementation  The fallacy of formalization – inhibits flexibility, spontaneity, intuition and learning REALIZED STRATEGY INTENDED STRATEGY EMERGENT STRATEGY

15 Long-term, simple and agreed objectives Profound understanding of the competitive environment Objective appraisal of resources EFFECTIVE IMPLEMENTATION Successful Strategy Common Elements in Successful Strategy