The word ‘Strategy’ derives from the Greek word stratēgos, which derives from two words: stratos (army) and ago (ancient Greek for leading). Stratēgos referred to a 'military commander' during the age of Athenian Democracy. A Strategy is a long term plan of action designed to achieve a particular goal, most often "winning." Strategy is differentiated from tactics or immediate actions with resources at hand by its nature of being extensively premeditated, and often practically rehearsed. Strategies are used to make the problem easier to understand and solve.
In India, documented evidence on concept of Strategy dates back to 4th century BC through ‘The Arthashastra’ (Arthaśāstra), which is a treatise on statecraft, economic policy and military strategy; written by Chāṇakya, a professor at Taxila University and later the prime minister of the Maurya Empire.
According to Nick Obolensky, professor of Leadership and Strategy, the concept of strategy being applied to contemporary business first emerged after the Second World War through people such as Bob McNamara, then President of Ford and later Secretary of Defense under Kennedy. ‘Theory of Games and Economic Behavior’ by Von Newmann & Morgenetern formulated methods of resolving conflicts in politics, war and business. Moving beyond the traditional assumption that a market is a Zero-Sum Game, ex CEO of Intel, Andy Groves, coined a new word ‘Co-Opetition’ – a merger of cooperation and competition. Adam Brandenburger of Harvard Business School and Garry Nalebuff of Yale School of Management elaborated on the subject in their seminal work ‘Co-Opetition’ using the Value Net, which is a schematic map that helps visualize the game of markets.
Any successful business strategy, according to professor Obolensky, will need to ensure it has the following three building blocks: 1) fast & efficient processes and systems (IT strategy); 2) a structure & culture that supports the overall strategy (HR strategy); and 3) a shrewd financing strategy.
Any of the below three basic models can be employed to formulate a strategy: 1) matrix-based formulation model – with independent and dependent variables plotted on scale along ‘x’ and ‘y’ axes; 2) mnemonic letter-based formulation model such as SWOT; and 3) issues/theme-based models such as Porter’s Five Forces model.
In India, documented evidence on concept of Strategy dates back to 4th century BC through ‘The Arthashastra’ (Arthaśāstra), which is a treatise on statecraft, economic policy and military strategy; written by Chāṇakya, a professor at Taxila University and later the prime minister of the Maurya Empire.
According to Nick Obolensky, professor of Leadership and Strategy, the concept of strategy being applied to contemporary business first emerged after the Second World War through people such as Bob McNamara, then President of Ford and later Secretary of Defense under Kennedy. ‘Theory of Games and Economic Behavior’ by Von Newmann & Morgenetern formulated methods of resolving conflicts in politics, war and business. Moving beyond the traditional assumption that a market is a Zero-Sum Game, ex CEO of Intel, Andy Groves, coined a new word ‘Co-Opetition’ – a merger of cooperation and competition. Adam Brandenburger of Harvard Business School and Garry Nalebuff of Yale School of Management elaborated on the subject in their seminal work ‘Co-Opetition’ using the Value Net, which is a schematic map that helps visualize the game of markets.
Any successful business strategy, according to professor Obolensky, will need to ensure it has the following three building blocks: 1) fast & efficient processes and systems (IT strategy); 2) a structure & culture that supports the overall strategy (HR strategy); and 3) a shrewd financing strategy.
Any of the below three basic models can be employed to formulate a strategy: 1) matrix-based formulation model – with independent and dependent variables plotted on scale along ‘x’ and ‘y’ axes; 2) mnemonic letter-based formulation model such as SWOT; and 3) issues/theme-based models such as Porter’s Five Forces model.
An effective strategist must use her experience and instinct and apply the right type of model that is best suited in the unique situation of a company in question, and the context within which the company operates.
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