Welcome to Foundations of Business Strategy module one.
An Introduction to Strategic Analysis.
In this module we will define strategy.
We will discuss strategic analysis.
We will introduce the concept of a strategist challenge.
We will spend some time talking about competitive markets.
And introduce the idea of the fundamental principle of business strategy.
And then at the end we'll discuss two perspectives in strategy.
On the source of economic grants.
Let me begin with a story of a company many of you are probably familiar with
Apple started in the late 1970s,
as an entrant into the personal computer industry to wild success early on.
But then competitive entry occurred.
IBM and in particular there partners Windows from Microsoft and
Intel with the micro processor company had an alternative product that eventually
became dominant standard in the personal computer industry.
And for nearly two decades, Apple languished as an also ran in the industry,
commanding by 2002, no more than 3% of the personal computer market.
And by 2002, some were even talking about the demise of Apple.
Michael Dell famously saying, just put them out of their misery.
And then something happened.
The iPod, and then over the course of the next ten years,
a succession of amazing new products, the iPhone,
the iPad, iTunes, changed radically the fortunes of Apple, and
now they are one of the most respected and highly valued companies in the world.
Was there a conscious change in strategy here?
Was this just an emergent phenomenon that happened in the company?
These are the types of questions we are going to ask as we consider
Now business strategy is a term that is bantered about in the popular press.
You see it in the Wall Street Journal.
You'll see it on CNBC.
But what exactly does it mean.
I like to joke there are as many definitions for
strategy as there are strategy professors.
So here is one definition from Kenneth Andrews
a famous strategist who had a book in 1971,
called The Concept of Corporate Strategy and it does a nice job summarizing.
This idea of business strategy.
So he says, strategy is the pattern of decisions in a company that determines and
reveals its objectives, purposes, or goals, produces the principal policies and
plans for achieving those goals, and defines the range of business the company
is to pursue, the kind of economic and human organization it intends to be, and
the nature of the economic and noneconomic contribution it intends to make
to its shareholders, employees, customers, and communities.
So let me highlight some of the pieces of this definition here.
So, let me suggest the following simple strategy scheme up to help us map out
what an organizations strategy might be.
We start with this idea of the strategic mission.
A firm's value, it's purpose, what's the scope of its operations.
How do we define the business?
And how do we express its aspirations?
Last but not least, strategic action.
This is where the rubber really hits the road.
What are the action a firm takes along with their plan to achieve their mission.
This could include things like a merger and acquisition,
perhaps innovating a new product line, or developing a robust supply chain.
Once again, together these strategic actions help define what the strategy of
the organization is.
Strategy and Execution for Emerging Markets
How can multinationals, entrepreneurs, and investors identify and respond to new challenges and opportunities around the world? In this Q&A, HBS professors and strategy experts Tarun Khanna and Krishna G. Palepu offer a practical framework for succeeding in emerging markets. Plus: Book excerpt with action items. Key concepts include: The ambition level of large, fast-growing emerging markets around the world rivals that of companies in the United States in the late 19th and early 20th centuries. Khanna and Palepu outline how to identify and respond to institutional voids in product, labor, and capital markets. Investors and entrepreneurs can respond to niches in institutional infrastructure in the private sector, such as the need for information analyzers and advisors, aggregators and distributors, transaction facilitators, and more. A useful starting point for managers is to construct an institutional map to identify institutional voids—which may themselves present business opportunities. Western multinational companies as well as local entrepreneurs are innovating products to attract the emerging middle class. Such innovations could potentially benefit consumers living in mature markets. Closed for comment; 0 Comment(s) posted.