In: Business and Management

Submitted By shelly89
Words 1242
Pages 5
What is Competition?


“Without a strategy the

organization is like a ship without a rudder.”
Joel Ross and Michael Kami

Thinking Strategically: The Three Big Strategic Questions
1. What’s the company’s present situation? 2. Where does the company need to go from here?
 Business(es)  Buyer

to be in and market positions to stake out

needs and groups to serve to head

 Direction

3. How should it get there?
 A company’s

answer to “how will we get there?” is its strategy

What Do We Mean By “Strategy”?
 Consists

of competitive moves and business approaches used by managers to run the company

 Management’s
 

“action plan” to

Grow the business Attract and please customers

 

Compete successfully
Conduct operations Achieve target levels of organizational performance

The Hows That Define a Firm's Strategy
 How  How  How  How

to grow the business to please customers to outcompete rivals
Strategy is HOW to . . .

to manage each functional piece of the business (R&D, production, marketing, HR, finance, and so on) to respond to changing market conditions to achieve targeted levels of performance

 How  How

Choosing the “Hows” of Strategy

Strategic choices about “how” are based on

 

Trial-and-error organizational learning about what has worked and what has not worked Management’s appetite for taking risks Managerial analysis and strategic thinking about how best to proceed, given market conditions and the company’s circumstances

In choosing a strategy, management is in effect saying,
“Among all the many different business approaches and ways of competing we could have chosen, we have decided to employ this particular combination of competitive and operating approaches in moving the company in the intended direction, strengthening its market…...

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