1. What is Strategy?
Process and Content

2. History of Strategy? Rooted in the Military
Originated in business with the emergence of the business schools (Wharton and Harvard)
First known as Business Policy
Used as a capstone course to bring business functions together
Had little grounding in its own theory
Real research in the area of “strategic management” only really began to take shape in the 1970’s
Technically economics is the grounding for strategic management theory
Rigid structure of neoclassical economics did not serve empirical evidence of firm performance well which lead to other disciplines such as sociology, Pyschology, political sceince, and institutional theory as “alternative” explanations for strategy.
Relaxation of the the rigidities in economics in the 1980’s has put economics back in the forefront as a solid theoretical foundation for strategy
History leads to a very young field of research with little in the way of “accepted” principles and theories

3. Purpose of Strategy? What is the ultimate goal of strategy for a firm?
Maximize shareholder value
“Monopoly” power
Bigger can be better
Profits – above average
Success – but what is success?
Staying in business/survival
Does strategy imply or require exploitation of other?
Tactics
Defn
How do we position ourselves to achieve sustainable above average profits in the long run

4. What is Strategy? Hierarchical Definition What is it? Strengths
Part of a 4 stage model
Defines how you achieve mission/objectives
Plan – write it down/implement/achieve objectives
Strengths
Specific goals
Less abstract
Provides structure
Context to take great ideas to action
Pushes you toward implementation – attention to resource allocation
Weaknesses
Excludes external environment
More static than dynamic
Less flexibility

5. What is Strategy? Eclectic Definition What is it? Strengths Weaknesses
Multiple aspects – plan, ploy (tactics), pattern, perspective/perception (how you see yourself), position
Strengths
Weaknesses

6. What is Strategy? Matching Definition What is it? Strengths Weaknesses
Take a look at threats/opportunities and define strategies to take advantage of threats and minimize weaknesses
Strengths
Not just considering inside firm, also looking at environment
Makes you look at your strengths/weaknesses
Effective at helping make decisions
Weaknesses
Assumes firms can predict environment
Leaves a void of “what to do about SWOT”

7. Deliberate versus Emergent Strategies
Intended
Strategy
Unrealized
Strategy
Deliberate Strategy
Sustained
Superior
Performance
Realized
Strategy
Emergent Strategy
Adapted from: Mintzberg, H. “The Strategy Concept I: Five Ps for Strategy” California Management Review. Volume 30 Number1, Fall 1987.

8. Opportunities and Threats Internal Analysis Strengths and Weaknesses
Vision and Mission
External Analysis
Opportunities and Threats
Internal Analysis
Strengths and Weaknesses
Strategic Choice
SWOT
Organizational
Structure
Designing Control
Systems
Business Strategy
Strategy Implementation/Tactics
Feedback
Succession
Planning

9. Where Are We Headed? Not focused on business strategy research
Theory development
Empirical testing of Theory
Application of Strategy and Strategic Management Process to Decision-making
How Mike, Allan, and others use strategy concepts to help firms improve decision-making
Expect you to do some reading on the theory to help with background as we explore application of the concepts