Summary - strategy: a global perspective
The nature of strategy
Multiple definitions of strategy, not one that is the definitive correct one
The three dimensions of strategy
- context - conditions surrounding strategic activities
- Process - Flow of strategy activities
- Content - outcome of strategy activities
Three stages of the strategy process:
Three dimensions of strategy context:
Two types of strategic problems:
Dialectic approach: Discussing the two opposite possibilities to come to a higher level resolution
Culture should always be considered in management.
Foreign cultures can be advantageous for the management at home, since they give enlightening experiences
1.1 Identifying the strategy issues
Two approaches to learning:
- Tools driven: understanding the tools first, then solve the problems with the combined tools.
- Problem driven: understanding the problem first, then comes searching for the right tools based on the type of problem.
1.1.1 Strategizing, missioning and visioning
There are two important inputs for strategy: the cognitive process for individual strategists (strategizing) and purpose as the impetus for strategy activities (missioning and visioning)
1.1.2 Strategy dimensions: Content, process and context
There are three dimensions of strategy:
- Strategy content: the combined decisions and choices that lead a company into the future. The what of strategy: what is and should be, the strategy for the company and each of its
- Strategy process: The manner in which strategies come about. The how, who and when of strategy: how is, and should strategy be made, analyses, dreamt up, formulated, implemented, changed and controlled; who is involved; and when do de necessary activities take place?
- Strategy context: The set of circumstances under which both the strategy content and the strategy process are determined. The where of strategy; where (which firm and environment) are strategy content and process embedded?
Waar gaat strategy process over?the how, who and when of strategy: how is and should strategy be made, analysed, dreamt-up, formulated, implemented, changed and controlled; who is involved, and when do the necessary activities take place?
Waar gaat strategy content over?what of strategy: what is/should be the strategy for the company and each of its constituent units?
waar gaat strategy context over?The where of strategy, in which firm and which environment are strategy content and strategy process embedded?
Strategy content, process and context are thee distinguishable dimensions, and are interrelated (they interact).
1.1.3 Strategy content: Business, corporate and network levels
The most common distinction is between levels of aggregation is between the functional, business and corporate level.
specific functional aspects/departmentsof a company ( operations strategy, marketing strategy, financial strategy, etc.)
Business level: integration of functional level strategies for a distinct set of products/services for a distinct group of customers.
If firms are in two or more businesses; corporate level strategy: aligns the various business level strategies.
Multi company or network level strategy: when firms cluster into groups of two or more collaborating organizations.
Outside in: positioning in the environment, the firm adapts to the demands of the market/game.
Inside out: companies search for environments and positions that best fit with their resource base.
1.1.4 Strategy process: Forming, changing and innovating
Strategies are usually formed incrementally, as organizations think and act in small iterative steps, letting strategies emerge as they go along.
Strategy formation, change and innovation are different aspects of the strategy process, which are strongly linked and partially overlapping.
1.1.5 Strategy context: Industry, organizational and international
It is wise for managers to strive for a fit between the strategy process, strategy content and the specific circumstances prevalent in the strategy context.
In short, strategy context can be determined, instead of letting it determine.
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Example questions in this summary
Waar gaat strategy content over?
Waar gaat strategy process over?
waar gaat strategy context over?