What is strategy?

Definition: strategy is what we want to do, what we want our organization to be & where we want it to go.


Why do we need a strategy?

- for understanding our position in the market place
- to give some sense of direction
- focusing on key issues

What does a strategy involve:

- Where are we now & how did we get there? What did we do well or badly to arrive at our current position
- What business are we in? Will this remain the same or will we need to change over business? If so, what?
- What factors, internal or external to the organization will or can have a telling impact on what we do in the future?

The steps written in "What does a strategy involve" above are a continuous process.

Where does strategy fit:

Strategy Models:

# Growth model

Growing market share by reduction in production cost & increasing sales
# Porter's 5 forces model:
# Growth by Mergers, Acquisitions & Takeovers
[Inorganic growth model]
- GE / Mckinsey Model [latest]
- BCG [old strategic tool]
- Value Chain -Porter
- Core Competitiveness - C K Prahlad/ Gary Hamel

- GE / Mckinsey Model

It's also called as Product Portfolio Matrix.


- Value Chain

- Core Competitiveness

- How does activity "X" significantly improve the end product for the customer?

- Does "X" offer access to a range of application & needs?

- What would happen to our competitiveness if we lost our strength in "X"?

- How difficult is it for others to imitate activity "X" & compete with us?

- 7S - Mckinsey

Ansoff, Porter, Prahlad, Hamel, Mintzberg, Goldratt, Tom Peters

Guidelines for strategic formulation:
- be different
- learn from the past
- change continuously
- be innovative
- involve people [CFT - cross functional team]

Strategic analysis:
- external environment - SLEPTW analysis
- internal environment - SWOT
- competition - 5 forces model

While making a strategy, look for the following perspectives also:
- strategic horizon
- alternate strategy
- leadership
- customers
- people
- control
- integration
- processes
- results

During the process of strategic formulation:
- seriously question
- involve everyone
- avoid "paralysis by analysis"
- encourage & foster innovation & creativity
- go for a balance
- embrace conflict
- remember that strategy never stops

4 types of organizations:
- short lived
- watchers
- learning organizations &
- movers

Strategic formulation & implementation:

Learning strategy framework