Strategic Thinking
BUS 302 Spring 2010
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What is Strategy?
 Strategy
is a pattern of actions
designed to achieve a certain goal.
A
firm is acting strategically when its
actions:
– Are purposeful
– Move the firm toward long-term goal
achievement
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What is Strategic Thinking?
 Strategic
Thinking - Five Characteristics
– Systems Perspective - see the big picture
– Sense of Direction or Destiny - view of the
future
– Openness to new experience
– Deal with the gap between current reality and
intent for the future
– Using facts in creative and critical thinking
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Strategic Thinking &
Success
 Successful
strategic thinking results from:
– Choosing goals that are consistent with the
environment
– Making sure that the competencies
(strengths), internal structures and activities of
the firm are consistent with selected goals
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Why Fit Goals to the
Environment?
 Survival
of the firm depends on resources
 Resources come from stakeholders
 Stakeholders place demands on the firm
 Competitors vie for the same resources
 Failure to meet stakeholder demands
endangers the firm’s survival
 A good “fit” - chosen goals designed to
meet stakeholder demands better than other
firms
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Why Fit Goals to
Competencies, Structures
and Activities?
 All
firms possess strengths - “core competencies”
 Best chance of achieving goals occurs when a firm
“plays to its strengths”
 Firms also have many internal parts (structures)
which undertake activities to achieve goals
 A good “fit” ensures that internal parts/activities
work together to support the firms strategic goals
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