Strategy & Using Analytical Tools
Mintzberg (1985) offered that strategy as a “pattern in a stream of decisions”
As identified by Mintzberg (1987) there are a host of reasons as to why organisations need strategy: setting direction; focusing effort; gaining agreement; defining the organisation; providing consistency and distraction avoidance. Strategy needs to be linked with the long term direction of the company, as strategic decisions are normally made with the goal to achieve competitive advantage over competitors as an end result, furthermore strategic decisions will widely be concerned with the scope of the organisations activities. Conventionally, the practice of strategy has focused on the application of rational, analytical strategy tools and techniques developed by leading academics such as Igor Ansoff (1965) and Michael Porter (1980). However, as other academics have highlighted (Hamel and Prahalad, 1994) these tools have proved insufficient in times of uncertainty within business. Retailing for example is characterised by intense competition, and analytical tools are imperative in challenging the robustness of a companies current strategy thus highlighting areas that might need to change in order to achieve competitiveness in a new market.
The application of the ‘Five Forces Framework'developed by Porter 1980 are one such tool that can enable you to fathom the sources of competitive pressures from within and around the business. So whether you are indeed a company looking to enter the competitive retailing industry or perhaps a London builders merchant looking to expand, take time over your business strategy, link it to your long term goals and utilise the variety of tools at your disposal effectively.
Similar Posts:
I Wondered, Lonely As A Cloud. : crude light of the…
When marketing fails to hit the spot : I can’t help…
Five Ways to Prevent a Website Do-Over : Building a website…
What Writing A Book Is : On writing a book: Writing a book is a…
Comments are closed!