Strategic Management
Contemporary Strategy Analysis
Chapter 1: The Concept of Strategy
Introduction and Objectives
We will distinguish strategy from planning. Strategy is not a detailed plan or program of
instructions; it is unifying theme that gives coherence and direction to the actions and
decisions of an individual or an organization.
The Role of Strategy in Success
While these strategies did not exist as explicit plans, to both Queen Elizabeth and Lady Gaga
we can discern a consistency of direction based upon clear goals and an ability to bend
circumstances towards their desired outcomes.
What do these two examples tell us about the characteristics of a strategy that are conducive
to success? In both stories, four common factors stand out (figure 1.1):
• Goals that are consistent and long term
• Profound understanding of the competitive environment
• Objective appraisal of resources
• Effective implementation
Strategies that build on these four elements almost always play an influential role.
They are goal focused. They know the environments within which they play and tend to be
fast learners in terms of recognizing the paths to advancement. They know themselves well in
terms of both strengths and weaknesses. Finally, they implement their career strategies with
commitment, consistency, and determination. There is a downside, focusing on a single goal
may lead to outstanding success but may be matched by dismal failure in other areas of life.
For most of us, personal fulfillment is likely to require broad-based rather than narrowly
focused goals.
The same ingredients of successful strategies – clear goals, understanding the competitive
environment, resource appraisal, and effective implementation – from the key components
of our analysis of business strategy.
Contemporary Strategy Analysis
Chapter 1: The Concept of Strategy
Introduction and Objectives
We will distinguish strategy from planning. Strategy is not a detailed plan or program of
instructions; it is unifying theme that gives coherence and direction to the actions and
decisions of an individual or an organization.
The Role of Strategy in Success
While these strategies did not exist as explicit plans, to both Queen Elizabeth and Lady Gaga
we can discern a consistency of direction based upon clear goals and an ability to bend
circumstances towards their desired outcomes.
What do these two examples tell us about the characteristics of a strategy that are conducive
to success? In both stories, four common factors stand out (figure 1.1):
• Goals that are consistent and long term
• Profound understanding of the competitive environment
• Objective appraisal of resources
• Effective implementation
Strategies that build on these four elements almost always play an influential role.
They are goal focused. They know the environments within which they play and tend to be
fast learners in terms of recognizing the paths to advancement. They know themselves well in
terms of both strengths and weaknesses. Finally, they implement their career strategies with
commitment, consistency, and determination. There is a downside, focusing on a single goal
may lead to outstanding success but may be matched by dismal failure in other areas of life.
For most of us, personal fulfillment is likely to require broad-based rather than narrowly
focused goals.
The same ingredients of successful strategies – clear goals, understanding the competitive
environment, resource appraisal, and effective implementation – from the key components
of our analysis of business strategy.
