1. Strategic Thinking
BUS 302 Spring 2010

2. 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

3. 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

4. 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

5. 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

6. 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