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Corporate Strategy By Igor Ansoff

Decent Essays
Igor Ansoff (1918-2002), is a Russian American scholar who published the book “Corporate Strategy” in the year of 1965. This book had a big role in shaping the business world. He was the first one who defined the term of strategic management. In this book the scholar tried to define in detail the strategic management role in companies. The aim of this was to develop a way where potential of the firm had to meet the firm’s objectives. He tried to introduce planning into the companies so there would not be any waste for the company. The book tried to explain the way how a company should operate individually as every company has their own goals and resources. He believed that every company should make strategies that suit their policy and their…show more content…
This way of making a strategy enables the company to set the objectives and to follow the course without any mistakes. To go through this it is important to have strong management that knows how to lead the course and to motivate the employees. In his book he also defined an important concept that is used even now in strategic management and that is the concept of synergy.
Ansoff described the concept as 2+2=5 factor. Ansoff defined this as “effect which can produce a combined return on the firm’s resources greater than the sum of its parts”. (Ansoff, 1965)
He also developed a matrix in this book and this matrix defines that there are only four strategies and those are:
• sell existing products in existing markets;
• sell new products in existing markets;
• sell existing products in new markets;
• sell new products in new markets. (Ansoff,
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He distinguished planning and strategy as being very clear that those two terms are different, through his whole book he was explaining how planning is coming before making a strategy and how planning is more important the strategy itself. One of his key point in the book was that the company should more invest on the insight of the company then on the figures, as he believes that there is no high output and profit if the employees are not satisfied. By reading his book, I have come to a conclusion that every step has to be planned so the company gets to their
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