Académique Documents
Professionnel Documents
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What is Strategy?
Harvard Business Review November December, 1996
Michael E. Porter
Harvard Business School
Competitive Advantage
Outperforming the competition
usually measured by Return on Equity
Operational Effectiveness
Operational effectiveness (doing individual activities well) can and will likely be readily copied and therefore is not a sustainable source of advantage.
However, it is still a necessary, (although not sufficient) condition for competitive advantage.
Strategy renders choices about what not to do as important as choices about what to do. - Michael Porter, What is Strategy?
For consistency with strategy For mutual reinforcement To optimize effort and mix of activities
McGill University
Deliberate strategy (Porter / Harvard) Strategy is the conscious, analytical development of a distinct position in the environment
Emergent strategy (Mintzberg / McGill) Strategy is an intuitive process through which the organization evolves by adapting to its environment
Organizational Goals
Position School Process School
Competitive Advantage
(strategy
Continued Existence
(strategy is)all
is)essential to superior performance, which, after all, is the primary goal of any enterprise
Michael Porter
What is Strategy?
Relationship to Environment
Position School Process School
Learn and evolve Determine, develop through ongoing and defend an experience within advantageous position the environment in the environment Dont be afraid to Be disciplined about experiment this choice
Organizational Capabilities
Position School Process School
Build mutuallyreinforcing fit among organizational activities in tightly focused support of chosen strategic position
Encourage experimentation and variety in activities, from which potential new strategies may emerge
Lets Compromise
Strategy formation walks on two feet one deliberate, the other emergent.
Henry Mintzberg
Of Strategies Deliberate and Emergent