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Common elements in successful strategies - Strategy is done before the implementation; you need simple consistent long-term goals - Strategy entails desired state of the future; long-term and short-term goals also functional - Management by objectives: peter drocker o Breaking things down to get things done; aka simple consistent long-term goals o External Analysis: Need a profound understanding of the environment o Internal Analysis: Objective appraisal of resources; all resources: human capital, financial capital, social capital, time Effective Implementation - Strategy has the basic 4 elements Ceo of our own careers History Strategic Decisions - Sustained competitive advantage o Ex. Supply and demand; we will never reach equilibrium since supplies are always being added o You can have a competitive advantage but if you have something that is not easily immitateable, that is the ideal o Sustainable is not about innovating and creating new technology, e.g. zellers looked slightly looked like Walmart but didn’t feel like it since they did businesss different, it’s in the interdependencies in those discrete activities thus leading to above average profits for a longer period of time  E.g. pizza pizza doing with dipping sauce – easily way to copy, it is not giving anyone an advantage since it was only temporal and now everyone has it - If u cant find an advantage – stay ready for change Distinction - Porter believes people follow 5 generic strategies and the rest is tactic - Strategy to win the war and tactics to win the battles Evolution of strategic management - Last 3 in the columns are all contexts - Questions for competitive advantage remains for all companies Strategy defined - All have same word in common; goals - Need more resources to be able to absorb fail

Sources of superior profitability - ROI o Each business unit competes in a landscape of competitors o Depends where u want to business ur company o WE aren’t doing corporate strategy !! o We focus on business Firm’s Strategy? - Static – compete for present - Dynamic – plan for future o Vision is long term, mission 5 yrs Identify a firm’s strategy? - Strategic intent is a hybrid goal; combines mission and vision, it is definitive and clear - You should be able to infer its priorities of strategy based on the financial investments Roles of strategy - Helps assess quality of decisions by letting us measure the outcomes - Managing a group – used to coordinate and unite people - Don’t penalize people for not accomplishing the stretched objective aka set it higher to ensure productivity is better as well as focus and direction Who’s interest? - Stakeholders vs shareholders? - Milton freedom argues maximize shareholder profits, he lets the shareholders decide if they want to donate money to csr initiatives – he isn’t against donating but believes the banks shouldn’t decide where the money goes and the corporation shouldn’t be paying the charities Profit and purpose Basic framework - Internal - External

GMS 804 BUS800 -...