1. The S TRATEGY CONCEPT An Introduction To Strategic Thinking

2. Questions n What is strategy? n What does it mean to think strategically? n What is the value of strategic thinking?

3. What Is Strategy? D Derivation from the Greek work “strategos” – “a general” D Greek verb stratego means to “plan the destruction of one’s enemies through effective use of resources” D Many different definitions are possible.

4. 1. What is Strategy? Strategy is a LOT like Sailing------

5. Sailing Race n What do we need? Place to go--------GOAL

6. Sailing Race-- Strategy Elements place to go GOAL sailing plan, navigation PLAN charts, timetable charts, timetable boat, supplies, money, RESOURCES food, information food, information captain, decision-makerLEADERSHIP procedures, measurement SYSTEMS people, skills, experience STAFF/SKILLS decisions, tasks STRUCTURE norms, culture CORE VALUES

7. Elements of Strategy: 7 S’s-- must FIT together strategy strategy systemsstructure superordinate goals goals skillsstyle staff staff

8. Sailing Race Having designed our Strategy-- We set sail….. What happens???

9. Sailing Race StartFinish

10. StartFinish

11. 1. What is Strategy? n intended strategy-- plan for action n emergent strategy-- process n realized strategy--- outcome - source- Henry Mintzberg, 1987

12. Some Useful Definitions of Strategy ¶ Strategy as the determinant of the long-term goals of the enterprise. · Strategy as the pattern of objectives, purposes, or goals and plans for achieving these goals. ¸ Strategy as the common thread among a firm’s activities.

13. D Strategy is a pattern in a stream of actions over time. Mintzberg’s Definition

14. What Is Strategy? D All definitions involve an integration of the past and present to create the future. D If we are passive, we must accept the future that comes to us, whether we like it or not. D Strategy implies active participation in the creation of a future that we desire.

15. Different Kinds of Strategy Intended Strategy

16. UnrealizedStrategy Deliberate Different Kinds of Strategy

17. Intended Strategy UnrealizedStrategy Emergent Strategy Strategy Deliberate Different Kinds of Strategy

18. Intended Strategy UnrealizedStrategy Emergent Strategy Strategy Deliberate RealizedStrategy Different Kinds of Strategy

19. The Five P’s Ploy Plan Pattern Position Perspective

20. Thinking Strategically n Military Strategy

21. Military Axioms on Effective Strategy ¬Have clear, decisive objectives. ­Maintain the initiative. ®Concentrate on resources. ¯Be flexible. °Have coordinated and committed leadership. ±Achieve surprise. ²Have an element of security.

22. Thinking Strategically n Military Strategy n Business Strategy n Corporate Strategy Product/Market Scope Growth Vector Competitive Advantage Synergy

23. What is the value of strategic thinking?

24. Next Wednesday n Spend some time thinking about big companies “realized strategy” came about. Analysis is important. n Questions?? n See you next Wednesday – Enjoy the long weekend!