What is strategy?

A course of action, including the specification of resources required, to achieve a specific objective
Concerned with
1. purpose and long term direction
2. scope of organisations' activities
3. meeting challenges from external environment
4. effective use of internal resources
5. delivering value to those who depend on the organisation
Strategic management considers
1. scope of business activities
2. matching activities to capabilities
3. allocation of resources
4. operational decisions which follow
5. values and expectations of senior management
6. long-term direction
7. change in the business
Mintzberg: 5 Ps of Strategy
1. Plan
  1. Provide direction
2. Pattern
  1. consistent
3. Ploy
  1. tactic to deter/confuse competition
4. Postition
  1. where organisation places itself within market or environment
5. Perspective
  1. perception of environment and interpreting the information from it
Strategic levels
1. Corporate
  1. Purpose and scope
2. Business
  1. approach to market
3. Functional
  1. long term management policies
Strategic areas
1. Financial
  1. capital structure, dividend policy
2. Investment
  1. use of capital to provide strategically valuable resources
3. Competitive
  1. how the business out-performs rivals

Resource summary

	Created by wightrose about 9 years ago

	Copied by Michelle Cadiz over 4 years ago