Fundamental Issues in Strategy

Fundamental Issues in Strategy

1. Strategic Firms

   • Selection of goals
   • Choice of products and services to offer
   • Design of policies
   • Level of scope and diversity
   • Organization structures
   • Administrative Systems

2. Strategic Management

   • Field of inquiry
   • Grounded in practice
   • Very important subject
   • Younger than its practice
   • Originated in business schools

3. Academic spread

   • Harvard pioneered
   • Business Policy was the subject
   • The course became standard

4. Origins

   • 1962
     • Foundation
   • 1970
     • Structure stablished
     • Studies
       • Connection between strategy and performance
   • Planning
   • Institute of Management Sciences
   • Smith, Andrews, Chandler, Ansoff, Porter

5. Corporate Strategy

   • Two aspects
     • Formulation
       • Processes themselves to formulate strategy generate assets
     • Implementation
   • Uncertainty
     • leads to
       • Tentativeness
       • Search
       • Serial trial

6. Economics

   • Initial objetives
     • Understand what generates efficient goods and services
     • Understand what determines distribution of wealth
   • Now led by internal logic

7. Organizational Sociology

   • Concerned with social interaction
   • Authority is a key source of social order
   • System of exchanges generates value

8. The fundamental questions in strategy

   • They act to define a field of inquiry
     • Why are there firms?
     • Why are firms different?
     • How do firms behave?