BUAD 475 - MW Section 2

Evan Stutzman

February 4, 2013

Strategy: Definitions and Meanings by Nickols Are You Sure You Have a Strategy? by Hambrick and Fredrickson Homework Questions Assigned reading: Are You Sure You Have a Strategy? by Hambrick and Fredrickson (this article can be found on D2L) Question 1 On page 51 (first page of the article), the authors ask the following question, What do these grand declarations have in common? Please complete the chart below by answering the following questions: Question What do they have in common? Besides being grand declarations, what do the authors suggest that they are? Your Answer Only that none of them is a strategy. They are strategic threads, mere elements of strategies.

Question 2 On page 51, the authors talk about strategic fragmentation. Please complete chart below by answering the following question. Question In your opinion, what is strategic fragmentation? Your Answer These are the pieces that contribute to strategy formulation, such as five forces, core competencies, hyper competition, the resource-based view of the firm, and value chains.

Question 3 On page 52, the authors state that strategy has become a catch-all term. Please complete the chart below by answering the following questions: Question What does it mean that strategy has become a catch-all term? Your Answer It now means whatever you want it to mean.

BUAD 475 - MW Section 2 What problems do executives create when they communicate these strategic threads to their organization?

Evan Stutzman

February 4, 2013

When executives call everything strategy, and end up with a collection of strategies, they create confusion and undermine their own credibility.

Question 4 On page 52, the authors state that, Many readers of works on the topic know that strategy is derived fromthe art of the general. Please complete the chart below by answering the following questions: Question In the discussion that follows, what do generals do? How do they define the term strategy? On page 52, they talk about Figure 1 (which is on pg. 53). This may be a somewhat difficult question, but what does Figure 1 tell you about strategy? In other words, how does it broaden your understanding of what strategy is? Your Answer A general must consider the whole and manage multiple group, and multiple areas. They must have a plan of how the business will achieve all of its objectives. A strategy consists of an integrated set of choices, but it isn't a catchall for every important choice an executive faces. How business intends to engage its environment. I believe the figure tells me that strategy is a combination of strategic variables that combine with the mission and objectives of a company to create an overall direction or premise of the strategy.

Assigned reading: Strategy: Definitions and Meanings by Nickols (this article can be found on D2L) Question 5 Read pages 1-3. Then please complete the following chart by summarizing each persons definition or view of strategy: Your Summary Strategy According to George Steiner 1. Strategy is that which top management does that is of great importance to the organization. 2. Strategy refers to basic directional decisions, that is, to purposes and missions.

BUAD 475 - MW Section 2

Evan Stutzman

February 4, 2013

3. Strategy consists of the important actions necessary to realize these directions. 4. Strategy answers the question: What should the organization be doing? 5. Strategy answers the question: What are the ends we seek and how should we achieve them? Strategy According to Henry Mintzberg 1. Strategy is a plan, a "how," a means of getting from here to there. 2. Strategy is a pattern in actions over time; for example, a company that regularly markets very expensive products is using a "high end" strategy. 3. Strategy is position; that is, it reflects decisions to offer particular products or services in particular markets. 4. Strategy is perspective, that is, vision and direction. Corporate strategy is the pattern [italics added] of decisions in a company that determines and reveals its objectives, purposes, or goals, produces the principal policies and plans for achieving those goals, and defines the range of business the company is to pursue, the kind of economic and human organization it is or intends to be, and the nature of the economic and noneconomic contribution it intends to make to its shareholders, employees, customers, and communities. a combination of the ends (goals) for which the firm is striving and the means (policies) by which it is seeking to get there. the framework which guides those choices that determine the nature and direction of an organization. Real issues are strategic management and thinking strategically.

Strategy According to Kenneth Andrews

Strategy According to Michael Porter Strategy According to Kepner-Tregoe Strategy According to Michel Robert

Strategy According to Treacy and Wiersema

Wiersemas three value disciplines are briefly defined be-low: 1. Operational Excellence. Strategy is predicated on the production and delivery of products and services. The objective is to lead the industry in terms of price and convenience. 2. Customer Intimacy. Strategy is predicated on tailoring and shaping products and services to fit an increasingly fine definition of the customer. The objective is long-term customer loyalty and long-term

BUAD 475 - MW Section 2

Evan Stutzman

February 4, 2013

3.

customer profitability. Product Leadership. Strategy is predicated on producing a continuous stream of state-of-the-art products and services. The objective is the quick commercialization of new ideas.