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Lecture on Strategy
Jul 11, 2024
Lecture on Strategy
Introduction to Strategy
Definition
: Strategy involves defining goals and then choosing and implementing the means to achieve them.
Contexts
: Applies to individuals, businesses, and states.
Individuals
: E.g., obtaining a job by earning a diploma.
Businesses
: E.g., Microsoft increasing users by making Office available on iOS devices.
States
: E.g., France reducing road violence by increasing radar use.
Business Strategy Elements
Tools, Methods, and Concepts
: Utilize various variables such as action and representation variables.
Types of Variables
:
Technico-Economic Variables
: Core functioning of the business, e.g., results, growth, positioning, competition.
Social Variables
: Consider the company as a social fabric, focus on motivation, social climate, employee involvement.
Political Variables
: Internal power dynamics and management issues, not related to political science.
Process Characteristics
Systemic Process
:
Multiple interacting actors, including managers, employees, external stakeholders (e.g., suppliers, clients, shareholders).
Competitors influence the company's strategy.
Dynamic Process
:
Continuous evolution due to interactions of various actors.
Changes in objectives, means, and external demands (e.g., client requests, competitive strategies).
Challenges in Strategy
Technico-Economic Variables
:
Increasing complexity due to a global network of numerous actors.
Global competition from various regions like Europe, USA, Asia, and emerging markets (e.g., China, Brazil, Vietnam).
Social Variables
:
Evolution in the significance of work amidst other social structures (e.g., family, social networks, leisure activities).
Political Variables
:
Shift in authority dynamics; need for better explanation and perspective to ensure long-term employee engagement.
Conclusion
The strategy is a complex, dynamic, and systemic process with numerous interacting variables and actors.
Contemporary challenges include increased unpredictability, evolving social norms, and changing authority relations.
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