What is Strategy - Revision history

Paulreed at 17:11, 31 October 2011

2011-10-31T17:11:53Z

← Older revision		Revision as of 12:11, 31 October 2011
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	*Bargaining power of buyers.		*Bargaining power of buyers.
	*Rivalry among existing firms.		*Rivalry among existing firms.
	*[[Author::Porter]] also indicates that, in response to these five factors (See [[Porter's Five Forces]]), competitive strategy can take one of three generic forms: (1) focus, (2) differentiation and (3) cost leadership. (See [[Porter's Generic Strategy]]		*[[Author::Porter]] also indicates that, in response to these five factors (See [[Porter's Five Forces]]), competitive strategy can take one of three generic forms: (1) focus, (2) differentiation and (3) cost leadership. (See [[Porter's Generic Strategy]])


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	Operational Excellence		Operational Excellence
	Strategy is predicated on the production and delivery of products and services. The objective is to lead the industry in terms of price and convenience.		Strategy is predicated on the production and delivery of products and services. The objective is to lead the industry in terms of price and convenience.
	Customer Intimacy Strategy is predicated on tailoring and shaping products and services to fit an increasingly fine definition of the customer. The objective is long-term customer loyalty and long-term customer profitability.		Customer Intimacy Strategy is predicated on tailoring and shaping products and services to fit an increasingly fine definition of the customer. The objective is long-term customer loyalty and long-term customer profitability.
	Product Leadership Strategy is predicated on producing a continuous stream of state-of-the-art products and services. The objective is the quick commercialization of new ideas.		Product Leadership Strategy is predicated on producing a continuous stream of state-of-the-art products and services. The objective is the quick commercialization of new ideas.

Paulreed at 17:10, 31 October 2011

2011-10-31T17:10:40Z

← Older revision		Revision as of 12:10, 31 October 2011
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	*Bargaining power of buyers.		*Bargaining power of buyers.
	*Rivalry among existing firms.		*Rivalry among existing firms.
	*[[Author::Porter]] also indicates that, in response to these five factors (See [[Porter's Five Forces]]), competitive strategy can take one of three generic forms: (1) focus, (2) differentiation and (3) cost leadership. (See [[Porter's Generic ~~Strategies~~]]		*[[Author::Porter]] also indicates that, in response to these five factors (See [[Porter's Five Forces]]), competitive strategy can take one of three generic forms: (1) focus, (2) differentiation and (3) cost leadership. (See [[Porter's Generic Strategy]]

Paulreed at 17:08, 31 October 2011

2011-10-31T17:08:38Z

← Older revision		Revision as of 12:08, 31 October 2011
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	Although it is not my aim to draw definitive distinctions between strategy and tactics, it is next to impossible to say something about one without also saying something about the other. The table below summarizes some of the more important differences I’ve noted in my studies and observations of strategy and tactics.		Although it is not my aim to draw definitive distinctions between strategy and tactics, it is next to impossible to say something about one without also saying something about the other. The table below summarizes some of the more important differences I’ve noted in my studies and observations of strategy and tactics.

	Aspects Strategy Tactics		===Aspects Strategy Tactics===
	Scale of the Objective Grand Limited		*Scale of the Objective Grand Limited
	Scope of the Action Broad and General Narrowly Focused		*Scope of the Action Broad and General Narrowly Focused
	Guidance Provided General and Ongoing Specific and Situational		*Guidance Provided General and Ongoing Specific and Situational
	Degree of Flexibility Adaptable, but not hastily changed Fluid, quick to adjust and adapt in minor or major ways		*Degree of Flexibility Adaptable, but not hastily changed Fluid, quick to adjust and adapt in minor or major ways
	Timing in Relation to Action Before Action During Action		*Timing in Relation to Action Before Action During Action
	Focus of Resource Utilization Deployment Employment		*Focus of Resource Utilization Deployment Employment

	Strategy and tactics are both terms that come to us from the military. Their use in business and other civilian enterprises has required little adaptation as far as strategy in general is concerned, however, corporate strategy and competitive strategy do represent significant departures from the military meaning of strategy.		Strategy and tactics are both terms that come to us from the military. Their use in business and other civilian enterprises has required little adaptation as far as strategy in general is concerned, however, corporate strategy and competitive strategy do represent significant departures from the military meaning of strategy.

	Corporate versus Competitive Strategy		===Corporate versus Competitive Strategy===
	Corporate strategy defines the markets and the businesses in which a company will operate. Competitive or business strategy defines for a given business the basis on which it will compete. Corporate strategy is typically decided in the context of defining the company’s mission and vision, that is, saying what the company does, why it exists, and what it is intended to become. Competitive strategy hinges on a company’s capabilities, strengths, and weaknesses in relation to market characteristics and the corresponding capabilities, strengths, and weaknesses of its competitors. According to Michael Porter, a Harvard Business School professor and the reigning guru of competitive strategy, competition within an industry is driven by five basic factors:		Corporate strategy defines the markets and the businesses in which a company will operate. Competitive or business strategy defines for a given business the basis on which it will compete. Corporate strategy is typically decided in the context of defining the company’s mission and vision, that is, saying what the company does, why it exists, and what it is intended to become. Competitive strategy hinges on a company’s capabilities, strengths, and weaknesses in relation to market characteristics and the corresponding capabilities, strengths, and weaknesses of its competitors. According to Michael Porter, a Harvard Business School professor and the reigning guru of competitive strategy, competition within an industry is driven by five basic factors:

	Threat of new entrants.		Threat of new entrants.
	Threat of substitute products or services.		*Threat of substitute products or services.
	Bargaining power of suppliers.		*Bargaining power of suppliers.
	Bargaining power of buyers.		*Bargaining power of buyers.
	Rivalry among existing firms.		*Rivalry among existing firms.
	Porter also indicates that, in response to these five factors, competitive strategy can take one of three generic forms: (1) focus, (2) differentiation and (3) cost leadership.		*[[Author::Porter]] also indicates that, in response to these five factors (See [[Porter's Five Forces]]), competitive strategy can take one of three generic forms: (1) focus, (2) differentiation and (3) cost leadership. (See [[Porter's Generic Strategies]]


	~~Other Factors Affecting Corporate and Competitive Strategy~~
	Other writers on the subject of strategy point to several factors that can serve as the basis for formulating corporate and competitive strategy. These factors include:		Other writers on the subject of strategy point to several factors that can serve as the basis for formulating corporate and competitive strategy. These factors include:

	Products-services offered		Products-services offered
	Sales-marketing methods		* Sales-marketing methods

	Users-customers served		Users-customers served
	Distribution methods		* Distribution methods

	Market types and needs		Market types and needs
	Natural resources		* Natural resources

	Production capacity-capability		Production capacity-capability
	Size/growth goals		* Size/growth goals

	Technology		Technology
	Return/profit goals		* Return/profit goals


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	Related to Mission & Vision Who are we?		Related to Mission & Vision Who are we?
	What do we do?		*What do we do?
	Why are we here?		*Why are we here?
	What kind of company are we?		*What kind of company are we?
	What kind of company do we want to become?		*What kind of company do we want to become?
	What kind of company must we become?		*What kind of company must we become?

	Related to Strategy in General What is our objective? What are the ends we seek?		Related to Strategy in General What is our objective? What are the ends we seek?
	What is our current strategy, implicit or explicit?		*What is our current strategy, implicit or explicit?
	What courses of action might lead to the ends we seek?		*What courses of action might lead to the ends we seek?
	What are the means at our disposal?		*What are the means at our disposal?
	How are our actions restrained and constrained by the means at our disposal?		*How are our actions restrained and constrained by the means at our disposal?
	What risks are involved and which ones are serious enough that we should plan for them?		*What risks are involved and which ones are serious enough that we should plan for them?

	Related to Corporate Strategy What is the current strategy, implicit or explicit?		Related to Corporate Strategy What is the current strategy, implicit or explicit?
	What assumptions have to hold for the current strategy to be viable?		*What assumptions have to hold for the current strategy to be viable?
	What is happening in the larger, social, political, technical and financial environments?		*What is happening in the larger, social, political, technical and financial environments?
	What are our growth, size, and profitability goals?		*What are our growth, size, and profitability goals?
	In which markets will we compete?		*In which markets will we compete?
	In which businesses?		*In which businesses?
	In which geographic areas?		*In which geographic areas?

	Related to Competitive Strategy What is the current strategy, implicit or explicit?		Related to Competitive Strategy What is the current strategy, implicit or explicit?
	What assumptions have to hold for the current strategy to be viable?		*What assumptions have to hold for the current strategy to be viable?
	What is happening in the industry, with our competitors, and in general?		*What is happening in the industry, with our competitors, and in general?
	What are our growth, size, and profitability goals?		*What are our growth, size, and profitability goals?
	What products and services will we offer?		*What products and services will we offer?
	To what customers or users?		*To what customers or users?
	How will the selling/buying decisions be made?		*How will the selling/buying decisions be made?
	How will we distribute our products and services?		*How will we distribute our products and services?
	What technologies will we employ?		*What technologies will we employ?
	What capabilities and capacities will we require?		*What capabilities and capacities will we require?
	Which ones are core?		*Which ones are core?
	What will we make, what will we buy, and what will we acquire through alliance?		*What will we make, what will we buy, and what will we acquire through alliance?
	What are our options?		*What are our options?
	On what basis will we compete?		*On what basis will we compete?




	Summary		===Summary===
	The preceding discussion asserts that strategy in general is concerned with how, with courses of action intended to achieve particular objectives. Corporate strategy is concerned with choices and commitments regarding markets, business and the very nature of the company itself. Competitive strategy is concerned with competitors and the basis of competition. ~~These basic points are illustrated in Figure 3.~~		The preceding discussion asserts that strategy in general is concerned with how, with courses of action intended to achieve particular objectives. Corporate strategy is concerned with choices and commitments regarding markets, business and the very nature of the company itself. Competitive strategy is concerned with competitors and the basis of competition.

	[[Category:Strategy]]		[[Category:Strategy]]

Paulreed: Created page with "There are at least three basic forms of strategy in the business world and it helps to keep them straight. The objectives of this brief paper are to clarify the general concept o..."

2010-12-24T13:39:49Z

Created page with "There are at least three basic forms of strategy in the business world and it helps to keep them straight. The objectives of this brief paper are to clarify the general concept o..."

New page

There are at least three basic forms of strategy in the business world and it helps to keep them straight. The objectives of this brief paper are to clarify the general concept of strategy and draw attention to the importance of distinguishing among three forms of strategy: (1) strategy or "strategy in general," (2) corporate strategy and (3) competitive strategy

Strategy, in general, refers to how a given objective will be achieved. Consequently, strategy in general is concerned with the relationships between ends and means
Although it is not my aim to draw definitive distinctions between strategy and tactics, it is next to impossible to say something about one without also saying something about the other. The table below summarizes some of the more important differences I’ve noted in my studies and observations of strategy and tactics.

Aspects Strategy Tactics
Scale of the Objective Grand Limited
Scope of the Action Broad and General Narrowly Focused
Guidance Provided General and Ongoing Specific and Situational
Degree of Flexibility Adaptable, but not hastily changed Fluid, quick to adjust and adapt in minor or major ways
Timing in Relation to Action Before Action During Action
Focus of Resource Utilization Deployment Employment

Strategy and tactics are both terms that come to us from the military. Their use in business and other civilian enterprises has required little adaptation as far as strategy in general is concerned, however, corporate strategy and competitive strategy do represent significant departures from the military meaning of strategy.

Corporate versus Competitive Strategy
Corporate strategy defines the markets and the businesses in which a company will operate. Competitive or business strategy defines for a given business the basis on which it will compete. Corporate strategy is typically decided in the context of defining the company’s mission and vision, that is, saying what the company does, why it exists, and what it is intended to become. Competitive strategy hinges on a company’s capabilities, strengths, and weaknesses in relation to market characteristics and the corresponding capabilities, strengths, and weaknesses of its competitors. According to Michael Porter, a Harvard Business School professor and the reigning guru of competitive strategy, competition within an industry is driven by five basic factors:

Threat of new entrants.
Threat of substitute products or services.
Bargaining power of suppliers.
Bargaining power of buyers.
Rivalry among existing firms.
Porter also indicates that, in response to these five factors, competitive strategy can take one of three generic forms: (1) focus, (2) differentiation and (3) cost leadership.

Other Factors Affecting Corporate and Competitive Strategy
Other writers on the subject of strategy point to several factors that can serve as the basis for formulating corporate and competitive strategy. These factors include:

Products-services offered
Sales-marketing methods

Users-customers served
Distribution methods

Market types and needs
Natural resources

Production capacity-capability
Size/growth goals

Technology
Return/profit goals

Recently, "value disciplines" have been suggested as the basis for settling on strategy (corporate or competitive). The three basic "value disciplines" are:

Operational Excellence
Strategy is predicated on the production and delivery of products and services. The objective is to lead the industry in terms of price and convenience.
Customer Intimacy Strategy is predicated on tailoring and shaping products and services to fit an increasingly fine definition of the customer. The objective is long-term customer loyalty and long-term customer profitability.
Product Leadership Strategy is predicated on producing a continuous stream of state-of-the-art products and services. The objective is the quick commercialization of new ideas.

Some Fundamental Questions
Regardless of the definition of strategy, or the many factors affecting the choice of corporate or competitive strategy, there are some fundamental questions to be asked and answered. These include the following:

Related to Mission & Vision Who are we?
What do we do?
Why are we here?
What kind of company are we?
What kind of company do we want to become?
What kind of company must we become?

Related to Strategy in General What is our objective? What are the ends we seek?
What is our current strategy, implicit or explicit?
What courses of action might lead to the ends we seek?
What are the means at our disposal?
How are our actions restrained and constrained by the means at our disposal?
What risks are involved and which ones are serious enough that we should plan for them?

Related to Corporate Strategy What is the current strategy, implicit or explicit?
What assumptions have to hold for the current strategy to be viable?
What is happening in the larger, social, political, technical and financial environments?
What are our growth, size, and profitability goals?
In which markets will we compete?
In which businesses?
In which geographic areas?

Related to Competitive Strategy What is the current strategy, implicit or explicit?
What assumptions have to hold for the current strategy to be viable?
What is happening in the industry, with our competitors, and in general?
What are our growth, size, and profitability goals?
What products and services will we offer?
To what customers or users?
How will the selling/buying decisions be made?
How will we distribute our products and services?
What technologies will we employ?
What capabilities and capacities will we require?
Which ones are core?
What will we make, what will we buy, and what will we acquire through alliance?
What are our options?
On what basis will we compete?

Summary
The preceding discussion asserts that strategy in general is concerned with how, with courses of action intended to achieve particular objectives. Corporate strategy is concerned with choices and commitments regarding markets, business and the very nature of the company itself. Competitive strategy is concerned with competitors and the basis of competition. These basic points are illustrated in Figure 3.

[[Category:Strategy]]