Are You Sure You Have Strategy Essay Example

much emphasis will be placed on each. Vehicles, the second element of a strategy, is a choice about how the company will get there – or in related back the arenas element, how the company will attain the needed presence in the particular product category, market segment, or geographic area. This includes decisions about internal development, joint ventures, and acquisitions. Failure to clearly consider the expansion vehicles can result in entry to the arenas being delayed or costly.

The third decision; differentiators helps answer the question how the firm will win in the marketplace. These are advantages that don’t just happen; rather they require executives to make mindful choices about which tactics to use. Some choices in this element include: image, customization, price, and after-sale services. If the strategist does not make these thoughtful, up-front decisions, an advantage will never occur and management may try to offer customers with overall superiority in all areas, which are doomed for failure because of inconsistencies and extraordinary resource demands.

Instead, strategists should give clear preference to those few forms of advantage that are consistent with the competences of the company, and the values of the targeted arenas. Having a convincing advantage does not necessarily mean that the company has to be at the extreme on one differentiating dimension; rather it is sometimes better to have a combination of moderate differentiators. Staging, the fourth element, is choices about the speed and sequence of past decisions regarding arenas, vehicles, and differentiators.

Decisions about staging can be driven by a number of factors including resources, urgency, achievement of credibility, and pursuit of early wins. The final element and heart of a strategy is economic

logic. This element helps answer the question, how will the company obtain its returns – not just simple profits, but profits above the costs of capital. These decisions are rooted in the fundamental capabilities of the organization and include the price charged for the product/service itself, as well as the cost of inputs used to create the product/service. This article propelled me forward in my understanding of a strategy.

It gave me an actual framework to use for identifying what tactics companies are using in their strategy. Looking forward to the beer industry analysis, I can foresee myself using Hambrick and Fredrickson’s views frequently. However, because I have a firm understanding of other’s viewpoints regarding the creation and implementation of strategy and envision myself using them as well, I wish Hambrick and Fredrickson related and compared their beliefs to the beliefs of others.

1. Andrew J. Maki MgtS 4481 Sec. 5 Geoffry Bell, Ph. D. February 6, 2011 Hand-In Summary 1