• 7.3: How Do Managers Develop Strategy?


      • 7.3.1: The Components of a Business Strategy

        • The Five Components of a Business Strategy Page

          Watch this short video, which sets the stage for our discussion of business strategy.

        • Strategy Formulation URL

          Read this article and, if applicable, think about one of your own past experiences with strategic planning. Were you aware of your specific role in helping the organization achieve its goals? Did the organization implement its plan effectively? Was the company flexible enough to adapt to marketplace changes as they occurred? Did the organization take appropriate measures to monitor the plan and evaluate its success or failure in achieving its stated goals?

      • 7.3.2: Strategy Is Essential for Management Success

        • Developing Strategy Through Internal Analysis URL

          Read this section, which further explores the importance of well-thought-out managerial strategies. You will learn how to evaluate resources, potential capabilities, and core competencies, and then use them to support the development and implementation. This section focuses on identifying what your company does better than its competition and how you can use this insight to your advantage when developing a business strategy. As a manager, you will need to understand your company's best assets and use them to meet business needs. Pay attention to the VRIO (valuable, rare, inimitable, organization) framework for internal analysis. This tool will help you to determine whether a company has identified its true core competencies.

        • Developing Strategy Through External Analysis URL

          Read this section, which covers the external environmental forces that impact the strategy and success of an organization. It is important for you to note that as a manager, you likely will be unable to control many influential elements that are external to your organization. Therefore, you must gather as much information as possible in any relevant situation in order to meet challenges that may arise from you external environment. Keep in mind that not all external factors have a negative impact; some may actually present opportunities.

        • Formulating Organizational and Personal Strategy With the Strategy Diamond URL

          Read this section, which discusses how to identify whether or not a manager has presented a well-crafted and concise strategy. Pay special attention to the strategy diamond presented in the text; it is a strong visual resource for determining the characteristics of a solid strategy.

        • Developing Successful Strategies: Planning To Win URL

          Read this article, which describes how organizations can develop effective strategies that enable them to achieve their goals. This article provides an excellent example of how a fictional community coalition might develop strategies to meet its goal of reducing teen pregnancy.

      • 7.3.3: Discussing the Five Competitive Forces of Strategy

        • The Five Competitive Forces that Shape Strategy Page

          This video features Professor Michael Porter of Harvard Business School. Porter is a leading thinker in the field of management. In this video, he discusses his Five Forces model and uses the airline and soft drink industries to reinforce and illustrate this model. Using this information, how might you use the Five Forces as a tool to improve strategy in your own organization (or one you are familiar with)?