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:
    1. Technico-Economic Variables: Core functioning of the business, e.g., results, growth, positioning, competition.
    2. Social Variables: Consider the company as a social fabric, focus on motivation, social climate, employee involvement.
    3. 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.