Strategic Management

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Strategy

The words 'strategy' and 'strategic' are well recognized and widely used in the modern business world. However, the term strategy is so widely used for different purposes that it has lost any clearly defined meaning

“Despite the obvious importance of strategy, there is surprisingly little agreement on what a strategy really is. However, the fact is that behind every successful company, there is a superior strategy (Markides, 1999).” ‘’Behind every successful company, there is superior strategy. The company may have developed this strategy through formal analysis, trial and error, intuition, or even pure luck. No matter how it was developed, it is important to understand the logic of successful strategies (Markides, SMR,1999).” Strategy is a highly ambiguous word that is usually associated with a long range planning, a hierarchically structured system of objectives and goals, and a selected way of creating a fit between external environment, internal resources and capabilities - this view is not wrong, yet it is too narrow . contemporary thoughts in the field of strategic management imply that strategy should be understood as the creation of the company’s future which is the result of collective social activity, considered as an ongoing process (and not as a category) and idiosyncratic in its essence common practice shows that corporate identity and strategy are usually built around market and product focused entities not enough consideration is given to other essential entities of strategy - resources and competencies; the resource perspective is not a natural one for most companies product and market position can be changed relatively easily (if this new position relies on a portfolio of the same or similar capabilities that exist in the present) however, changes in the portfolio of resources, capabilities and competences require a longer-term evolutionary process strategy is built on assumptions about the future strategy has consider the uncertainty despite the existence of different definitions of strategy, we will avoid the temptation to offer a generic definition of it.

A working definition of Strategy

Inspired in the work of Henry Mintzberg on the field of strategic management, we propose the following working definition for strategy (See Mintzberg et al., 1998): “The means by which an individual or an organization accomplishes its objectives” By means, we understand ways or actions. In this context, Mintzberg and collaborators identify five key means:

(1) Plans
(2) Patterns
(3) Positions
(4) Perspectives
(5) Ploys
These five means or actions are what Mintzberg calls the ―five Ps of strategy (Mintzberg et al., 1998)
Strategy: the 5 P’s
Prof. Henry Mintzberg of McGill University says, “Just as Marketing has its 4 P’s, so also Strategy may be looked upon as comprising the 5 P’s, or 5 formal definitions, i.e, Plan, Ploy, Pattern, Position, and Perspective.”

STRATEGY AS PLAN:
Some sort of consciously intended course of action, a guideline or a set of guidelines to deal with a situation. They have two essential characteristics: they are made in advance of the actions to which they apply, and they are developed consciously and purposefully. As plans, strategies may be general or specific.

STRATEGY AS PLOY:
Really just a specific ‘maneuver’ intended to outwit an opponent or competitor, eg. a corporation may threaten to expand plant capacity to stop a competitor from building a new plant. Here the real strategy (as plan, that is the real intention) is the threat, not the expansion itself, and is therefore a ploy.

STRATEGY AS PATTERN:
Consistency in behavior, specifically a pattern in a stream of actions, whether or not intended, eg. Henry Ford offering the Model T only in black color, ultimately resulting in loss of...
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