What is strategy ?
Strategy is the direction and scope of an
organisation over the long term : ideally, which
matches its resources to its changing
environment, and in particular its markets,
customers or clients so as to meet stakeholder
“The clear cut choices about how to compete”
“ The direction or path chosen to pursue the
What is the difference between Strategy
Strategy is the path or choice made to
pursue the goal.
Tactic is the rate or speed at which you
pursue the strategy.
Evolution of the concept of strategic
word Strategy comes from the Greek
work- Strategia, which means a General or
Military Commander( the art of the general)
Thus literally it means, “ the view of the army
from the clouds”
War and Strategy are inseparable.
Strategic Management can be defined as
the set of decisions and actions resulting in
formulation and implementation of strategies
designed to achieve both the short and long
term objectives of an organization.
The strategist’s work is to challenge the
existing set up with a single question -Why?
Work done in the field of Strategy
Igor Ansoff- pioneered the concept of
All of them of them enriched the concept of
strategic management with their original insights.
Ansoff’s Strategic Success Paradigm
Ansoff conducted extensive research
on acquisitions by American companies
between 1948 and 1968.
He found that acquisitions based on a
rational strategy fared far better than
those that were based on opportunistic
Ansoff’s success paradigm identified the following There is no universal success formula for all
The level of turbulence in the environment
determines the strategy required for the
success of a firm.
The aggressiveness of the strategy should be
aligned with the turbulence in the environment
to optimize the firm’s success.
management's capabilities should be
aligned with environment to optimise the
capability variables i.e.- cognitive,
psychological, political, anthropological
and sociological variables, all jointly
determine the firm’s success.
The above findings , he translated into a diagnostic
instrument called “ Strategic Readiness Diagnosis”
Ansoff’s other contributionsHis book “ Corporate Strategy” (1965), played a key
role in the development of strategic planning.
An analytical Approach to Business Policy for
Growth and Expectation.
He introduced gap analysis and the concept of
synergy to a wide audience for the first time.
He created the famous “ Ansoff’s Grid”
Henry Mintzberg- Strategy as craft
next most influential thinker in the
field of strategic management – he gave
the personal side of the manager into the
Advocated a more humane approach to
strategy formulation and implementation
and coined “crafting strategy”.
Seminal work entitled “ The rise and fall
of Strategic Planning” & “Strategy Safari”
Peter Drucker ‘s contribution
contribution to business strategy
was the introduction of the concept of
Management by Objectives (MBO).
focus was shifted from processes to
Major contributions- The practice of
Management , The Essential Drucker
Competitive Strategy and Competitive Advantage
on environment analysis, he introduced the
“ five forces model” .
He introduced generic strategies like focus, cost
leadership and differentiation.
He also introduced the value chain analysis.
Literally his contributions include- Competitive
strategy(1980), Competitive Advantage(1985), The
Competitive Advantage of nations (1990)
notable contributors in the field of
strategy includeC.K. Prahalad and Gary Hamel
Sumantra Ghoshal and Christopher Bartlett.
Chan Kim and Renee Maubourgne.