The concept of strategy

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The concept of strategy by Mind Map: The concept of strategy

1. Strategy

1.1. Gives coherence and direction to decisions

1.2. Understanding the game to gain competitive advantage

1.3. Quest for success

1.4. Strategy≠Planning

1.5. Strategy≠tactic

2. Michael Porter: “Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value”

2.1. Focus on internal resources and capabilities.

3. Environment

3.1. External: Industry analysis

3.1.1. Strategic fit: Consistency between external and internal environment

3.2. Internal: Resources and capabilities

4. Factors of strategy

4.1. Goals are simple, consistent, and long term

4.1.1. Goals and values of the firm

4.2. Profound understanding of the competitive environment

4.2.1. The INDUSTRY environment: competitors, customers, suppliers

4.3. Objective appraisal of resources

4.3.1. Resources and capabilities of the FIRM

4.4. Effective implementation

4.4.1. Structure and systems of the FIRM

5. Corporate vs Business strategy

5.1. Corporate: Where in the industry the firm competes

5.1.1. Example: Coca-Cola soft drinks industry allocated worldwide.

5.2. Business: How the firm competes in the industry

5.2.1. Example: Coca-Cola having brand image based on advertising and promotion

6. Characterstics of strategy

6.1. As a decision support

6.1.1. strategy constraints the range of alternatives and acts as a heuristic and facilitates the use of analytic tools.

6.2. As a coordinating device

6.2.1. promote communication to all organizational members.

6.3. As a target

6.3.1. Direction for the future

7. Examples of success

7.1. Madonna

7.1.1. Knew since she was a little girl that she wanted the whole world to know who she was, therefore she had a direction to her decisions (strategy)

7.1.2. Strategic use of sex and understanding the industry and advantages of multimarket presence.

7.2. North Vietnam defeats South Vietnam (allied with the U.S.)

7.2.1. Using strategy understanding the U.S. hate towards long wars: Long war based on a three-phase theory of revolutionary war (Mao Tse Tung): 1)Passive resistance and political support 2)Guerrilla warfare 3)Counteroffensive

7.3. Armstrong winning 7 tour de France

7.3.1. Single minded focus strategy: training, dieting, mental resilience and psychological warfare suited for the tour de France.

7.3.2. Understanding the importance of team loyalty and analyzing the requierement for success in the tour de france.