BUSS1000 Chapter Notes - Chapter 4: Intentionality, Peter Drucker, Ikea
5 Jun 2018
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See doc for IKEA examples
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A strategy consists of an integrated set of choices, but it isn't a catchall for every important
choice an executive faces.
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company's mission and objectives guide strategy.
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strategy addresses how the business intends to engage its environment, choices about internal
organizational arrangements are not part of strategy. So we should not speak of compensation
policies, information systems, or training programs as being strategy.
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Arenas: where will we be active?
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Vehicles: how will we get there?
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Differentiators: how will we win in the market place?
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Staging: what will be our speed and sequence of moves?
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Economic logic: how will we obtain our returns
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The elements of a strategy:
The most fundamental choices strategists make are those of where, or in what arenas, the
business will be active.
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This is akin to the question Peter Drucker posed decades ago: "What business will we be in?"5
The answer, however, should not be one of broad generalities. For instance, "We will be the
leader in information technology consulting" is more a vision or objective than part of a
strategy.
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In articulating arenas, it is important to be as specific as possible about the product categories,
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Arenas:
Are you sure you have a strategy? Readings
Thursday, 5 April 2018
1:55 PM
Lecture Page 1
