1. Strategy? MGMT 619 Prof. Sanjay Jain
You may want to begin this lecture with a general comment that Chapter 1 provides an overview of the strategic management process. In this Chapter, the authors introduce a number of terms and models that students will study in more detail in Chapters 2 through 13. Stress the importance of students paying careful attention to the concepts introduced in this chapter so that they are well grounded in the strategic management concepts before proceeding further.

2. Last Class Alaska Goldmine exercise: strategy in action!
Significance of strategy
- “big picture”
- integrative; general management perspective
- navigating an increasingly dynamic, complex and uncertain environment
- importance for your careers

3. Agenda Can you say what your strategy is?
How competing for the future is different

4. The etymology of “strategy”
Origins in military history
strategus – a military commander in ancient Athens and a member of the Council of War
stratos – army
agein – to lead
Strategy – “the intelligent use of individual battles for the design of a sustainable campaign”
“tactics …involve the use of armed forces in the engagement, strategy [is] the use of engagements for the object of war”
Carl von Clausewitz, On War 1832

5. Etymology of “strategy”
Sun Tzu The Art of War (circa 500 B.C.)
“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.”
“The individualist without strategy who takes opponents lightly will inevitably become the captive of others.”

6. Can you say what your strategy is?
Ability to summarize your firm’s strategy in 35 words or less

7. Three critical components of a strategy statement
Objective
Scope
Advantage

8. Objective
Precise end that will drive business over the next five years or so
Specific
Measurable
Time-bound

9. Scope Customer/Offering Geographic location Vertical integration
Also defines what NOT to do

10. Advantage Customer value proposition
Combination of activities allowing firm to deliver the value proposition

11. Ongoing exercise Write strategic statements for:
The company you work for
The company you analyze for your capstone project

12. Strategizing for the future
Competing in scenarios where
- markets do not exist
rules are waiting to be written
little clarity about industry structure and customer preferences
The challenge: proactively configuring nascent industries or fundamentally reconfiguring existing industries to one’s own advantage

13. Strategizing for the future
How do we want the industry to be shaped in years?
How do we build a shared view of the future?
What must we do to ensure that the industry evolves in a way that is advantageous to us?

14. Strategizing for the future
Involves
maximizing opportunity share
blending the skills of multiple business units
- building coalitions with other firms and organizations
balancing speed and perseverance
Structuring unstructured arenas
Constructing new industries or reconfiguring existing ones

15. Strategizing for the future
Phases of competition -- a dynamic view
- competition for industry foresight and intellectual leadership
- competition to foreshorten migration paths
- competition for market position and market share
“Most managers wait for the miracle of birth; however this is unlikely unless there’s some activity nine months previously”

16. Takeaways Sharpening your working definition of strategy
The “positioning” and “imagining” school of strategy
Understanding how to make strategy actionable within firms