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Chapter 15 strategy process
Refection: how a firm’s managers develop, implement and change its strategy. Firms face different internal and external condition, and their strategy processes reflect these differences. Despite the wide variations in strategy process, any successful process will include certain basic elements. Paramount among these is the formulation of a strategy with clear goal, scope, competitive advantage and logic. Formulation of such a strategy is almost always affected by two different processes. The first is a set of activities that are intended to define the firm’s strategy and are understood to be part of the strategy process. These are refered as intentional part of process. The second process is a set of activities initiated by manages who might not even be participants in the intentional process that affect the firm’s strategy but not foreseen by the intentional process. This process is refered as autonomous part of strategy process. Some principles of the strategy process : 1. Strategy thinking is more important than strategic planning; 2. The essence of a strategy is a statement of objective, scope, competitive advantage and logic;3. Strategy is an inherently creative process;4. Strategy is not just the responsibility or domain of the firm’s most senior management;5. The firm’s organization and its strategy are intimately interrelated.6.no matter how much planning the firm does, the strategy will still evolve in unintended ways;7. Corporate strategy must add value to business level strategies. Business strategy process: strategy identification, strategy evaluation, strategic option development, strategic option evaluation, strategy selection, strategy communication, strategy implementation.