Business Strategy

Good Essays
According to Michael Porter, "Almost no consensus exists about what corporate strategy is, much less about how a company should formulate it"[1]. This is due to a combination of factors that relate to strategy terms, concepts and principles – and their practical application.

This article is designed to provide executives with a better understanding of the nature and purpose of strategy and draws on Jack Welch 's record at GE, as well as examples from other companies, to show how these strategy-related terms, concepts, and principles apply in practice.

The terms, concepts and principles of strategy

From my work as a strategy consultant, executive, and professor of strategy in graduate and executive programs, I have found that
…show more content…
Matériel includes capital, physical plant, raw materials, and parts, and less tangible components such as distribution networks, technology, human resources, market data, market reputation, and the ability to borrow. Methods includes a range of management, manufacturing, and marketing functions and processes, such as motivational, negotiating, and alliance skills, and other intangible resources that are covered by the terms "benchmarking," "best practices," "outsourcing," "ISO 9000," "total quality management," "core competencies," and "competitive capabilities." A company 's resources make the formulation of corporate and unit strategies possible and give effect to strategy implementation. Resources are the sine qua non of strategy: without resources, strategy can achieve nothing.

Because resources are a means for implementing strategy, they can be confused with tactics. Both resources and tactics are related to how strategy is achieved, but tactics (from the Greek taktikos, of order or arranging) refers to the detail of strategic designs and to the detailed actions that are needed to effect strategy implementation. Tactics are the detail-how of strategy, whereas resources are strategy 's with-what.

The resources element of the PSR Troika provides the with-what for implementing strategy and, therefore, for achieving policy. It is strategy, however, that drives decisions relating to the acquisition, development, and deployment of a company 's resources; and it
Get Access