BUSS1000 Lecture Notes - Lecture 5: Cost Leadership, Sunk Costs, Habitat
23 Jun 2018
School
Department
Course
Professor
What is strategy?
Etymology - ancient Greek ‘strategos’ (meaning the art of the military commander-in-chief, or
chief magistrate)
- “Competitive strategy is about being different. It means deliberately choosing a different
set of activities to deliver a unique mix of value” (Porter, 1996, p. 64)
- “An integrated, overarching concept of how the business will achieve its objectives”
(Hambrick & Fredrickson 2001 , p 3)
- “Strategy is the direction and scope of an organisation over the long terms, which
achieves advantage in a change environment through its configuration of resources and
competences with the aim of fulfilling stakeholder expectations” (Johnson, Scholes, &
Whittington, 2008, p 3)
Strategic management process
- Not a linear process
find more resources at oneclass.com
find more resources at oneclass.com
The 4 strategy lenses
Design: usage of evaluative and analytic processes to establish clear strategic direction
Experience: Importance of history and previous experiences in shaping decisions. Avoiding
heavy reliance on models/analysis.
Ideas: Importance of promoting diversity, to promote new ideas which solve uncertainty and
problems as they arise
Discourse: Using language to shape strategy and guide via influence, power, and legitimacy.
Integrated, mutually reinforcing set of choices that form a coherent whole
- Can make sense retrospectively but real power is looking at current shifts
- Past performance should not be used as an indicator for future performance
- Context is key
- Critically evaluating whether this is the best decision, right now.
- Strategy is not static
- Contexts, organizations, or strategy are not static
- You must have feedback loops and performance measurement built into the strategy
itself
Porter’s Generic Strategies
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Etymology - ancient greek strategos" (meaning the art of the military commander-in-chief, or chief magistrate) It means deliberately choosing a different set of activities to deliver a unique mix of value (porter, 1996, p. 64) An integrated, overarching concept of how the business will achieve its objectives (hambrick & fredrickson 2001 , p 3) Strategy is the direction and scope of an organisation over the long terms, which achieves advantage in a change environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations (johnson, scholes, & Design: usage of evaluative and analytic processes to establish clear strategic direction. Experience: importance of history and previous experiences in shaping decisions. Ideas: importance of promoting diversity, to promote new ideas which solve uncertainty and problems as they arise. Discourse: using language to shape strategy and guide via influence, power, and legitimacy. Integrated, mutually reinforcing set of choices that form a coherent whole.
