Strategy and Honda
part 1
What is Strategy?
1 What is Strategy?
1
What is Strategy?
Chapter 1 What is Strategy?
Chapter 6 Assessing Organizational Performance
Chapter 2 The General Environment
Chapter 5 The Internal Environment: A Resource-Based View of Strategy
Chapter 3 The Competitive Environment
Chapter 4 The Internal Environment: Value Creating Activities
Learning Objectives
After completing this chapter you should be able to: • • • • • • Explain what is meant by strategy Describe a strategic management process Discuss the role of values, vision, and mission statements Explain what is meant by a theory of business Evaluate different perspectives on strategy formulation Explain the linkages between an organization’s strategy and its external and internal environment
3
1.1 Introduction
What is strategy? How is strategy formulated and implemented? Are values important in determining which markets organizations seek to compete in? These are some of the questions that will be discussed in this first chapter. We start the chapter with a discussion of what strategy is. There is general agreement that the purpose of strategy is to help organizations achieve a sustainable competitive advantage. Where this consensus begins to break down is when we discuss how this should be achieved. We can identify two broad perspectives that we can call the rationalist or positioning approach, and the resource-based view of strategy. Each of these perspectives will be evaluated in greater detail in subsequent chapters. For now, we will simply introduce these perspectives and some of their chief protagonists when we address different approaches to strategy formulation. This chapter also looks at a strategic management process which includes strategy analysis, formulation, and implementation. We note that this essentially linear framework is very useful for exposition but has limitations when seeking to explain strategy in practice. The role of an organization’s
What is Strategy?
1 What is Strategy?
1
What is Strategy?
Chapter 1 What is Strategy?
Chapter 6 Assessing Organizational Performance
Chapter 2 The General Environment
Chapter 5 The Internal Environment: A Resource-Based View of Strategy
Chapter 3 The Competitive Environment
Chapter 4 The Internal Environment: Value Creating Activities
Learning Objectives
After completing this chapter you should be able to: • • • • • • Explain what is meant by strategy Describe a strategic management process Discuss the role of values, vision, and mission statements Explain what is meant by a theory of business Evaluate different perspectives on strategy formulation Explain the linkages between an organization’s strategy and its external and internal environment
3
1.1 Introduction
What is strategy? How is strategy formulated and implemented? Are values important in determining which markets organizations seek to compete in? These are some of the questions that will be discussed in this first chapter. We start the chapter with a discussion of what strategy is. There is general agreement that the purpose of strategy is to help organizations achieve a sustainable competitive advantage. Where this consensus begins to break down is when we discuss how this should be achieved. We can identify two broad perspectives that we can call the rationalist or positioning approach, and the resource-based view of strategy. Each of these perspectives will be evaluated in greater detail in subsequent chapters. For now, we will simply introduce these perspectives and some of their chief protagonists when we address different approaches to strategy formulation. This chapter also looks at a strategic management process which includes strategy analysis, formulation, and implementation. We note that this essentially linear framework is very useful for exposition but has limitations when seeking to explain strategy in practice. The role of an organization’s