3. What is Strategy?
Where are we going
And
how will we get there?
Strategy sets out the route
a business intends to take
to achieve its goals
4. What is Strategy?
The purpose of strategy is to help organizations
achieve a sustainable competitive advantage.
The difference b/w you and your competitors are
the basis of your advantage.
It allows to use org.’s resources & capabilities to
exploit opportunities and limit threats in external
environment.
5. Strategy Definition
• It is all about choices
• Competitive strategy is about being different
• It means deliberately choosing a different set of activities to deliver a
unique mix of value
• The match b/w org’s internal capabilities and its external relationships
6. Strategy Definition
• It is about the firm using analytical techniques to
help it to understand and influence its position in
the market
• A strategic position represents a company’s
answers to following questions-
-Who should the company target as customers?
-What products/ services should be offered ?
-How can company do this efficiently ?
7. Strategic Management
• Strategic management is the study of why some
firms outperform others.
• How to create a competitive advantage in the
market place that is unique, valuable, and
difficult to copy
• “Total organization” perspective, integrating across
functional areas.
• Strategies put together an understanding of the
external environment with an understanding of
internal strengths and weaknesses.
8. Definition of Strategic
Management
Strategic management consists of the analysis, decisions, and
actions an organization undertakes in order to create and
sustain competitive advantages
9. Definition of Strategic Management
Analysis
Strategic goals (vision, mission, strategic
objectives)
Internal and external environment of the firm
Decisions
What industries should we compete in?
How should we compete in those industries?
Actions
Allocate necessary resources
Design the organization to bring intended
strategies to reality
16. Amity Business School
Key Terms in Strategic
Management
• Vision statement
– answers the question “What do we want to
become?”
– often considered the first step in strategic
planning
17. Amity Business School
Key Terms in Strategic
Management
• Mission statements
– enduring statements of purpose that
distinguish one business from other similar
firms
– identifies the scope of a firm’s operations in
product and market terms
– addresses the basic question that faces all
strategists: “What is our business?”
18. Amity Business School
Key Terms in Strategic
Management
• External opportunities and external
threats
– refer to economic, social, cultural,
demographic, environmental, political, legal,
governmental, technological, and competitive
trends and events that could significantly
benefit or harm an organization in the future
19. Amity Business School
Key Terms in Strategic
Management
• Internal strengths and internal
weaknesses
– an organization’s controllable activities that
are performed especially well or poorly
– determined relative to competitors
20. Amity Business School
Key Terms in Strategic
Management
• Objectives
– specific results that an organization seeks to
achieve in pursuing its basic mission
– long-term means more than one year
– should be challenging, measurable,
consistent, reasonable, and clear
