Introduction to Management 23/09/2020
Session 2
Strategy
1. What is Strategy
Definition
• “Strategy is the determination of the long-run goals and objectives of an enterprise and
the adoption of courses of action and the allocation of resource necessary for carrying
out these goals.” – Alfred Chandler (1963)
Reason for creating strategy
• Orientation/providing direction
• Building a “shared understanding”
• Coordination of activities
• Anticipation of future developments
• Information and involvement of stakeholders
• Reflection and challenging the status quo
• Basis for management power
• Ex-post rationalization of decisions (putting in question established managerial
decisions)
2. Strategy Content, Context, and Process
Definition
1
, Strategy Process and Types
• Strategy types with different degrees of reactivity to context
Strategy Process definition
• “Strategic Management is what managers do to develop the organization’s strategies. It
is a six step process that encompasses strategic planning, implementation and
evaluation.” – Robbins and Coulter (2018)
• Strategy process steps:
• Identifying the organization’s current mission, goals, and strategies
• Doing an external analysis
• Doing an internal analysis
• Formulating strategies
• Implementing strategies
• Evaluating results
2
Session 2
Strategy
1. What is Strategy
Definition
• “Strategy is the determination of the long-run goals and objectives of an enterprise and
the adoption of courses of action and the allocation of resource necessary for carrying
out these goals.” – Alfred Chandler (1963)
Reason for creating strategy
• Orientation/providing direction
• Building a “shared understanding”
• Coordination of activities
• Anticipation of future developments
• Information and involvement of stakeholders
• Reflection and challenging the status quo
• Basis for management power
• Ex-post rationalization of decisions (putting in question established managerial
decisions)
2. Strategy Content, Context, and Process
Definition
1
, Strategy Process and Types
• Strategy types with different degrees of reactivity to context
Strategy Process definition
• “Strategic Management is what managers do to develop the organization’s strategies. It
is a six step process that encompasses strategic planning, implementation and
evaluation.” – Robbins and Coulter (2018)
• Strategy process steps:
• Identifying the organization’s current mission, goals, and strategies
• Doing an external analysis
• Doing an internal analysis
• Formulating strategies
• Implementing strategies
• Evaluating results
2
