1. Session 1 What is Strategy?2

2. Learning Objectives The successful graduate of this course…
knows the components of business and corporate strategy and what can make strategies more or less successful
analyzes differences between industries, markets, and competitors
integrates analytical skills from various functional fields into a holistic, strategic perspective
understands the merits and limits of both theory and intuition in the strategy-making process
appreciates the value of diverse perspectives and approaches in making strategic decisions
applies this understanding to relevant competitive problems
uses this knowledge to develop effective, sustainable strategies for their organization

3. Problem Framing Matters
The mere formulation of a problem is far more often essential than its solution... To raise new questions, new possibilities, to regard old problems from a new angle requires creative imagination…
- Einstein
What gets us into trouble is not what we don't know. It's what we know for sure that just ain't so.
- Yogi Berra

4. Defining Strategy
“…determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals” (Chandler, 1962)
“…the pattern of objectives, purposes, or goals, and major policies and plans for achieving these goals, stated in such a way as to define what business the company is or is to be in, and the kind of company it is or is to be” (Andrews, 1965)
“ …strategy is a pattern in a stream of decisions… (Mintzberg, 1975)

5. 4

6. Strategy, the Link between the Firm and its Environment5

7. Porter - What is Strategy?
Operational efficiency is not strategy, but both OE and strategy are needed
Strategy rests on unique positioning
Sustainable strategies involve tradeoffs
Strategy is about achieving fit in the organizational configuration of activities
Why do strategies fail?

8. Intel History Intel Strategy 2009
Robert Noyce and Gordon Moore incorporate NM Electronics
1970 - The development of DRAM and dynamic RAM
The world’s first microcomputer is introduced
1974 - The first general purpose microprocessor is introduced to the world
1980 - The Intel microprocessor is chosen by IBM for the first ever personal computer. 
1992 -  Intel’s net income tops the one billion dollar point
1993 - The Pentium is introduced, a fifth generation chip
1996 - Intel’s revenue exceeds twenty billion dollars and the net income surpasses $5B
The Pentium 11 microprocessor is introduced to the world
Intel is added to Dow Jones Averages.
The world’s very first Intel 1 gigahertz processor hits the shelves.
Intel Strategy 2009
Our goal is to be the preeminent provider of semiconductor chips and platforms for the worldwide digital economy. As part of our overall strategy to compete in each relevant market segment, we use our core competencies in the design and manufacture of integrated circuits, as well as our financial resources, global presence, and brand recognition. We believe that we have the scale, capacity, and global reach to establish new technologies and respond to customers’ needs quickly.

9. Intel 10 year stock performance

10. How would you describe the historical evolution of Intel’s strategy?
Has Intel achieved “unique positioning” ? Have they acknowledged tradeoffs?
Do they have “4+2”?
What strategic challenges does Intel face today?
What should Intel do?

11. What Really Works - 4+2 A clearly stated, focused strategy
Flawless operational execution
A performance-oriented culture
Fast, flexible, flat organization
Hold on to talent, and find more
Industry transforming innovation
Leaders committed to business and people
Growth through mergers and partnerships

12. The Strategy Design Process
Strategic Analysis
Strategic Choice
Strategy Implementation
and Evaluation
Identify
Sustainable
Competitive
Advantage
Select
Sustainable
Competitive
Advantage
Create
Sustainable
Competitive
Advantage
Understand Industry Context and Competition
Craft and
Communicate
Vision and Mission
Develop Action Plans, Programs, and Processes
Analyze Industry and External Environment
Develop Strategic Goals and Specific Long Term Objectives
Craft Changes in Structure and Processes
Implement the
Strategy
Evaluate
The Current
Situation
Evaluate and
Select Strategy
Analyze Resources and Internal Capabilities
Establish the Basis for Sustainable Competitive Advantage
Develop a Strategic Control System
Understand and Critique Current Strategy
Generate Feasible
Alternative
Strategies
Evaluate the
Strategies
Results
Feedback and Rethinking

13. 10 Ways of Thinking about Strategy
Design - strategy as process of conception
Planning - strategy as a formal process
Positioning - strategy as an analytical process
Entrepreneurial - strategy as a visionary process
Cognitive - strategy as a mental process
Learning - strategy as an emergent process
Power - strategy as a process of negotiation
Cultural - strategy as a collective process
Environmental - strategy as a reactive process
Configurational - strategy as a process of transforming
Mintzberg, 1998

14. The “Calvin Effect”