Strategic Thinking BUS 302 Spring 2010
What is Strategy? Strategy is a pattern of actions designed to achieve a certain goal. A firm is acting strategically when its actions: Are purposeful Move the firm toward long-term goal achievement
What is Strategic Thinking? Strategic Thinking - Five Characteristics Systems Perspective - see the big picture Sense of Direction or Destiny - view of the future Openness to new experience Deal with the gap between current reality and intent for the future Using facts in creative and critical thinking
Strategic Thinking & Success Successful strategic thinking results from: Choosing goals that are consistent with the environment Making sure that the competencies (strengths), internal structures and activities of the firm are consistent with selected goals
Why Fit Goals to the Environment? Survival of the firm depends on resources Resources come from stakeholders Stakeholders place demands on the firm Competitors vie for the same resources Failure to meet stakeholder demands endangers the firm’s survival A good “fit” - chosen goals designed to meet stakeholder demands better than other firms
Why Fit Goals to Competencies, Structures and Activities? All firms possess strengths - “core competencies” Best chance of achieving goals occurs when a firm “plays to its strengths” Firms also have many internal parts (structures) which undertake activities to achieve goals A good “fit” ensures that internal parts/activities work together to support the firms strategic goals