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Presentation

Main objectives of the course:
Acquire the knowledge of main concepts in strategy to understand the firms’ actions Strengthen the knowledge acquired throughout your curriculum (accounting, marketing, economics…) Improve your culture of business market Become aware of firms current transformations

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Programme

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Introduction The strategicdiagnosis An evolution of the economic and business environment The new strategies of firms

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Introduction

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What is the strategy ? A multiplicity of approaches The theoretical foundations of strategy Methodology of the case studies

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1. What is the strategy ?
The concept of strategy has been borrowed from the military and adapted for use in business Regardless ofthe definitions of strategy, or the many factors affecting the choice of corporate or competitive strategy, there are some fundamental questions to be asked and answered (Who are we ? What do we do ? What kind of firm are we ? …) Many definitions of strategy (Thiétart, Gervais, Porter, Mintzberg…)
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1. What is the strategy ?

Porter (1982) : « La stratégie, face à la concurrence, est unecombinaison des objectifs que s’efforce d’atteindre la firme et les moyens par lesquels elle cherche à les atteindre » Strategor (2005) : « élaborer la stratégie de l’entreprise, c’est choisir les domaines d’activité dans lesquels l’entreprise entend être présente et allouer des ressources de façon à ce qu’elle s’y maintienne et s’y développe »
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1. What is the strategy ?

Chandler : «Strategy can be defined as the determination of the basic long term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out those goals » Thiétart : « la stratégie est l’ensemble des décisions et actions relatives au choix des moyens et à l’articulation des ressources en vue d’atteindre un but »
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1. What is thestrategy ?
Refinements of the concept of strategy continued to focus on its military aspects over the next two millenia:
From Von Clausewitz they learned the dynamic and unpredictable nature of military strategy From Sun Tzu firms learned the tactical side of military strategy and specific tactical prescriptions

A sociological view of strategic management:
A strategy appears gradually Importanceof the internal environment
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1. What is the strategy ?

According to Mintzberg, the strategy should be collective in any organization because:
It shows a way It assures the activities coordination and the motivation of the staff It allows to exploit capacities and skills according to the opportunities in the firm environment

He examined the strategic process and concluded it wasmuch more fluid and unpredictable than people had though

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2. The theoritical background
The strategy is based on theoretical concepts, notably management and economic research The concepts and the tools are directly operational The theoritical background is based on 4 main paradigms Eminent economists produced some of the earliest academic writings about strategy (Coase, Schumpeter,Penrose…)
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2. The theoritical background

Industrial organization is based on SCP paradigm (Bain, Mason, Scherer, Chevalier…) Systemic conception which establishes the interdependence between the structure of the industry and the firms behavior The strategic behavior of firms is not limited to the only price dimension

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2. The theoritical background

The SCP framework arguesthat industry profitability depends on the structural characteristics of the industry and the actions of the firms in the industrial field For example, industry’s structure could determine the conduct of buyers and sellers, their choices of key decision variables…

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2. The theoritical background
The transaction costs theory (Coase, Williamson, Quélin…) determine the suitable governance...
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