Business Strategy
Samenvatting Business Strategy
Geschreven door Edward Khalstian, Student bedrijfskunde: 1e jaar.
Chapter 1: Strategy definitions and the strategic business plan
1.1 Definitions of strategy
Roughly speaking, strategy is the means by which firms ( but also individuals or other types of organizations such as military units) achieve their objectives. Corporate level strategy refers to a strategy regarding a group of activities or business units. Corporate level strategy should therefore determine not only the broad outlines of the strategies of the individual business units, but also how these should work together to create this additional value. Business level strategy refers to the strategies of each individual business unit. Business strategy is mostly used by small and medium-sized enterprises (SMEs).
Henry Mintzberg introduced the 4 Ps for strategy:
Plan, some sort of consciously intended course of actions, a guideline to deal with a situation.
Pattern, firms display a certain pattern of behaviour, whereby they sell certain kinds f products and service to certain kinds of markets in certain ways.
Position, the mediating force or match between the organization and its environment (lowest price position, or premium value).
Perspective, a way of seeing and understanding the world shared by all members of an organization.
In order to understand this possible decoupling of plans and patterns, you need to look at figure 1.1. To formulate strategic plans is to formulate intended strategy. However, not all plans will actually be carried out. That is some of your intended strategy will stay unrealized. At the same time, the pattern of behaviours that a firms displays (realized strategy) does not only consist of planned behaviour (deliberate strategy) , but it is also partly emergent. Emergent strategy is more or less spontaneous and unplanned.
1.2 Dimensions of strategic management
Strategic management is an organizational function, like production, marketing,
Geschreven door Edward Khalstian, Student bedrijfskunde: 1e jaar.
Chapter 1: Strategy definitions and the strategic business plan
1.1 Definitions of strategy
Roughly speaking, strategy is the means by which firms ( but also individuals or other types of organizations such as military units) achieve their objectives. Corporate level strategy refers to a strategy regarding a group of activities or business units. Corporate level strategy should therefore determine not only the broad outlines of the strategies of the individual business units, but also how these should work together to create this additional value. Business level strategy refers to the strategies of each individual business unit. Business strategy is mostly used by small and medium-sized enterprises (SMEs).
Henry Mintzberg introduced the 4 Ps for strategy:
Plan, some sort of consciously intended course of actions, a guideline to deal with a situation.
Pattern, firms display a certain pattern of behaviour, whereby they sell certain kinds f products and service to certain kinds of markets in certain ways.
Position, the mediating force or match between the organization and its environment (lowest price position, or premium value).
Perspective, a way of seeing and understanding the world shared by all members of an organization.
In order to understand this possible decoupling of plans and patterns, you need to look at figure 1.1. To formulate strategic plans is to formulate intended strategy. However, not all plans will actually be carried out. That is some of your intended strategy will stay unrealized. At the same time, the pattern of behaviours that a firms displays (realized strategy) does not only consist of planned behaviour (deliberate strategy) , but it is also partly emergent. Emergent strategy is more or less spontaneous and unplanned.
1.2 Dimensions of strategic management
Strategic management is an organizational function, like production, marketing,