Scribd
Upload
23 views

Tasks Asm

Uploaded by

Maria Mushtaque
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
23 views

Tasks Asm

Uploaded by

Maria Mushtaque
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Summary of Chapter #1: The Concept of Strategy (by Robert Grant)

I. A successful strategy includes four elements: Clear, consistent, long-term goals, Profound
understanding of the competitive environment, Objective appraisal of resources and Effective
implementation. Strategy is a key ingredient of success both for individuals and
organizations. A sound strategy cannot guarantee success, but it can improve the odds.

ii. The four elements of a successful strategy are recast into two groups—the firm and the
industry environment—with strategy forming a link between the two. The firm embodies
three of these elements: goals and values (“simple, consistent, long-term goals”), resources
and capabilities (“objective appraisal of resources”), and structure and systems (“effective
implementation”). The industry environment embodies the fourth (“profound understanding
of the competitive environment”) and is defined by the firm’s relationships with competitors,
customers, and suppliers.

iii. Strategic fit refers to the consistency of a firm’s strategy, first, with the firm’s external
environment and, second, with its internal environment, especially with its goals and values
and resources and capabilities.

iv. Strategy is the overall plan for deploying resources to establish a favorable position; a
tactic is a scheme for a specific action.

v. The resource-based view of the firm identified the resources and capabilities of the firm as
its main source of competitive advantage and the primary basis for formulating strategy. This
emphasis on internal resources and capabilities has encouraged firms to identify how they are
different from their competitors and to design strategies that exploit these differences.

vi. As the business environment has become more unstable and unpredictable, so strategy has
become less concerned with detailed plans and more about guidelines for success.

vii. Intended strategy is strategy as conceived of by the leader or top management team.
Realized strategy—the actual strategy that is implemented—is only partly related to that
which was intended (Mintzberg suggests only 10–30% of intended strategy is realized).
Emergent strategy—the decisions that emerge from the complex processes in which
individual managers interpret the intended strategy and adapt it to changing circumstances.

viii. Strategy is no longer concerned with using forecasts as the basis for detailed planning; it
is increasingly about direction, identity, and exploiting the sources of superior profitability.

ix. To describe the strategy of a firm (or any other type of organization), we need to
recognize where the firm is competing, how it is competing, and the direction in which it is
developing.

x. The principles and tools of strategic management have been developed primarily for
business enterprises; however, they are also applicable to the strategic management of not-
for-profit organizations, especially those that inhabit competitive environments.
WHAT IS STRATEGY? (By Michael E. Porter)

1- Performing different activities from rivals’ or performing similar activities in different


ways.

2- Competitive strategy is about being different. It means deliberately choosing a


different set of activities to deliver a unique mix of value.

3- Strategy is the creation of a unique and valuable position, involving a different set of
activities.

4- Strategy can be defined as making trade-offs in competing. The essence of strategy is


choosing what not to do.

5- Strategy is creating fit among a company’s activities. The success of a strategy


depends on doing many things well - not just a few - and integrating among them. If there is
no fit among activities, there is no distinctive strategy and little sustainability.

6- Strategy is the way a company creates and sustains a competitive advantage.

7- Strategy requires making choices and deliberately limiting what a company offers.

8- Strategy is a long-term, sustainable plan for competing successfully.

9- Strategy defines a company’s competitive position and determines how it will


compete in the market.

10- Strategic positions can be based on customers’ needs, customers’ accessibility, or the
variety of a company’s products or services.

11- Strategy rests on unique activities.

You might also like