Universiti Utara Malaysia Strategic Thinking in Developing Effective Strategies A Review of the Literature BPMN 6023: Strategic Management Lecturer: Assoc. Professor Dr Saari Prepared by: Lim Yew Wei 1.0 Introduction 3-5 2.0 Definition of Subject 5-6 3.0 1st Articles : Implication of Intuition for Strategic thinking: Practical Recommendations for Gut Thinker 6-9 4.0 2nd Articles : Management Framework Guiding Strategic Thinking In Rapidly Changing Markets 10-15 5.0 3rd Articles : Thinking Strategically About Thinking Strategically 15-19 6.0 4th Articles : Strategy Thinking - Learn to Optimize Its Power 20-22 7.0 5th Articles : The Need for …show more content…
All managers have resources (time, talent and capital) to varying degrees within their organizations. So, technically, all managers are strategists. The reality, however, is that not all managers are good strategists. Herein lies the pearl of great opportunity: the deeper you can dive into the business and resurface with strategic insights, the more valuable you’ll become to your organization. Effective resource allocation drives profitability (more resources invested in the right activities) and productivity (fewer resources invested in the wrong activities). The result is a high-performance organization in which all levels of management are encouraged and equipped to shape its strategic direction. 2.0 Definition of Subject 3.1 What is Strategy and Why is it Important Why every company needs a sound strategy to compete successfully, manages the conduct of its business, and strengthens its prospect for long-term success? A company’s Strategy consists of the competitive moves and business approaches that managers are employing to compete successfully, improve performance, and grow the business. Strategy is the process by which individuals and organizations make choices about scarce resources so as to satisfy wants over time. In making their choices individuals and organizations are constantly assessing market and non-market forces as vehicles to enhance economic welfare but they do so in an environment of complexity and
‘Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through it’
Strategy is a set of complicated tactics formulated by the executives of a company directed towards the achievement of company’s goal (Salmela, 2002). It is about all the path ways that a company would follow to reach its ultimate goal. It is a company’s strategy which helps to identify what it does better than the other companies in the industries, which may be different from what it does best. For successful strategy formulation and implementation, a company should know the needs of customers and should have knowledge of its competitors. Through a good strategy a company would identify that opportunity which makes it different from the others (Thompson, 2005).
Of all the Athenian leaders during the time of the Sicily invasion, Nicias possessed the clearest vision and a demonstrated ability to think
She said she often hears from executives: "My managerial team needs to be more strategic. I have managers who are fine at executing, but they are not strategic."
According to Slack et al. The corporate strategy or business strategy is the guide lines for the whole corporation’s businesses in relation to its markets, customers, and the competitors (2007). In the same context, the same authors discussed the link between the corporate strategy and
A competitive strategy, or business-level strategy, is the way a business used to successfully enter and penetrate into a market (Eastwood et al, 2006), and also, to succeed in this chosen market against its competitors (Johnson et al, 2014). A company needs to develop and apply appropriate strategy to help the company to generate distinctive competences (David, 2007). Compared with the strategies implemented in other levels of operation, competitive strategy is more focused on the competition against other competitors and strategic choices to better attain market share (Harrison and St. John, 2009). According to
A company that would like to expand and continue the health of the company needs to formulate strategy. There should be goals that plans and actions of a company would attempt to reach. A company may utilize competitive strategies that in which goals are made with competition in mind and corporate strategy concerns goal-directed plans and actions that target business choices (Coulter, 2013).
An organisation’s strategy plays an important role of providing direction of where company wants to be and how best to allocate the company’s resources to meet its objectives. The formulation of business strategies has evolved over the years and has been made more difficult in recent by the uncertain operating environments and global financial crises.
Alfred Chandler(1963) defines strategy as ‘ the determination of the long-run goals and objectives of an enterprise and the adoption of courses of action of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals’. And Michael porter(1996) sees it as ‘Competitive strategy is about being different. It means deliberately choosing different set of activities to deliver a unique mix of value’.
Strategy can be defined as being different from one’s competitors, finding the race to operate and accomplished it. According to Michael Porter (1996), while becoming better at what you do is desirable, it will not benefit you in the long run because it is something other competitors can also do. Strategies for organizations are originally developed by Michael E. Porter in 1979 by introducing the five forces model. A company can identify the industry profitability and attractiveness by analyzing the five forces of Porter (Johnson et al., 2008). And then a reasonable strategy can be set up in line with the strengths and the weakness of an organization is able to create a plan for a stronger position for the organization within its
“Competitive strategy involves positioning a business to maximize the value of the capabilities that distinguish it from its competitor’s” (Porter 1980:47). A successful business plan requires first and foremost the formation of an appropriate strategy. Through the implementation of a suitable strategy, the company is able to obtain its own industry niche and gain an understanding of its customers (Porter 1985). Whichever strategy is adopted it must be adequately integrated within the firms goals and missions to achieve a competitive advantage (Parker and Helms 1992).
In this modern hypercompetitive marketplace, a company must be a powerful competitor to survive. A company must possess a powerful strategy in order to become a powerful competitor. But what makes a good strategy for the company?
In the domain of management, strategic management encompasses identification together with definition of strategies. Usually, managers employ these strategies to strive for high performance as well as competitive advantage for a business establishment. In this respect, strategic management draws higher profitability if well planned and executed. In addition to that, it includes decisions as well as acts managers set about, and which determines the outcome of the organization’s performance. Incisively, a science is whatever skill that manifests detailed use of facts for a particular purpose. Subsequently, art is clearly characterized as the skill critical for any human tasks. Not only is strategic management a behavioral science,
A strategy is said to be a plan that is made for the long term success of a product or brand. It is extremely important to have a strategy in order to figure out a direction towards which any company is able to focus all its resources efficiently and achieve desired outcomes. Formulating effective strategies is a considerably long process in itself that combines analysing several factors, situations and issues that are already present in a company and looking to improve on them alongside trying to implement various innovations and ideas to collectively create a direction towards which they can move and direct the resources available to them.
A strategy, according to Robbins and Barnwell (2002, p. 139) is “the adoption of courses of action and the allocation of resources necessary to achieve the organisation’s goals”.