Professional Documents
Culture Documents
STRATEGY
Chandler, “Strategy is the determinator of the basic
long term goals of an enterprise and adoption of courses
of action and the allocation of resources necessary for
carrying out these goals”
Boston Consulting Group “ Strategy is a deliberate
search for a plan of action that will develop a business’s
competitive advantage and compound it. The objective is
to enlarge the scope of your advantage, which can only
happen at someone’s expense”
Strategic planning
Tactical (intermediate) planning
Operational planning
Approaches to Strategy
Functional Policies
Marketing, Finance etc
Rules
Salary and wage administration
Strategic Analysis
Strategic choice
Strategy formulation & Implementation
Strategies Vs Tactics
Strategies Tactics
on a long term
The uncertainty level The decisions are more certain
is quit high; lots of information and are taken within the
to be obtained from sources framework of strategies
Affect the various parts of The reach is limited to only
an organization in a significant way specific segments of an
organization
Various types of strategies
Master strategies or Grand strategies
The top level activity includes formulation of long term objectives
and these type of strategies cover the entire pattern of an
organization’s objectives, policies and specific resources
deployment. Grand strategies are derived from a careful situational
analysis of the organization and its environment
Programme strategies
It is concerned with how the basic organizational objectives will
be achieved
Sub strategies
Detailed steps to implement programme strategies
Tactics
These are the action plans of specific step by step
methods by which strategies are executed. Tactics are
formulated at the supervisory level and helps in
implementing policy decisions at the top level
The Generic Building Blocks of
Competitive Advantage
The Roots of Competitive Advantage
Strategy, Resources, Capabilities,
and Competencies
McKinsey 7-S Framework Model
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals (Shared Values)
Strategy: the plan devised to maintain and build competitive
advantage over the competition
No
No
Improve purchasing
methods
Proprietary Technologies
those that the company owns and may have control over via patents
or other protection. Technologies where the company may have
specialist knowledge or equipment
Pacing Technologies
The new set of technologies that are now making the running in
defining the rules of the game in the marketplace
Emerging Technologies
Those which are yet to be commercially exploited
Resource Competence Matrix
R
E
S
O
U Necessary Resources Unique Resources
R
C
E
S
C
O
M
P
E
T
E Threshold Competencies Core Competencies
N
C
I
E
S
Same as competitors Better than competitors
Resource based theory Model
Competitive Advantage