Chapter one: introduction to strategy
Notion of strategy: key concept
Having a strategy or not?
• Fix an orientation: coherence • Concentrate efforts: coordination and vision • Define the company: give sense • Facilitate action: reduce ambiguities without imitating creativity • Integrate different people, make them to work together. Coming from different background).
The 5 component of a business strategy
1. Your company's current or desired core competencies 2. A description of how you will differentiate vs. competitors 3. The industry or industries in which you intend to compete 4. The initiatives you plan to implement in the areas of marketing, operations, information technology, finance and organizational development 5. A financial forecast that shows how your plans will meet stakeholder requirements over the next 3 to 5 years
Definition of core competency from Wikipedia
A core competency is a specific factor that a business sees as being central to the way it, or its employees, works. It fulfils two key criteria:
1. It is not easy for competitors to imitate 2. It can be leveraged widely to many products and markets.
A core competency can take various forms, including technical/subject matter know-how, a reliable process and/or close relationships with customers and suppliers. It may also include product development or culture, such as employee dedication.
Core competencies are particular strengths relative to other organizations in the industry, which provide the fundamental basis for the provision of added value. Core competencies are the collective learning in organizations, and involve how to coordinate diverse production skills and integrate multiple streams of technologies. It is communication, an involvement and a deep commitment to working across organizational boundaries. Few companies are likely to build world leadership in more than five or six fundamental