SI 422SI422 Midterm Study Guide.

Module 1:What is Strategy? What is Strategy according to Porter and to Grant? ● Strategy is the creation of a unique and valuable position, involving a different set of activities. ○ Grant’s View: Strategy is not a detailed plan or program of instructions; it is a unifying theme that gives a coherence and direction to the actions and decisions of an individual or an organization.” ■ Designed to help the firm use its internal resources and characteristics to deal with its industry & competitive environment- Strategy must FIRTH the the firm and its environment ■ firm strategy requires understanding the external (industry) environment and internal (firm) environment and making choices to create the greatest fit between the two. That said,… ○ Porter’s View: refers to performing different activities from rivals or performing them in a different way ■ Choose the right configuration of activities, incentives, systems and make the right tradeoffs ■ STRATEGY RESULTS ON A UNIQUE ACTIVITES ■ Role of activities in strategy? Tradeoffs in Strategy Profitability varies across and within industries What is strategic management according to Grant? Operational effectiveness vs. Strategy (and which is needed to achieve sustained competitive advantage?)