Strategic Analysis and Choice: A Structured Approach
Strategy and strategic planning at the firm level often gets a bad reputation because managers aren't trained in it and the tools are unfamiliar, infrequently used and often poorly applied. The outcomes of these efforts can therefore be incomplete, biased, and far too subjective -- and the results disappointing. One purpose of this book is to overcome this problem of familiarity by developing a systematic approach to conducting a strategic analysis. From assessing the general industry environment to analyzing industry forces and firm resources, well known models are introduced and explained. This culminates in selecting a strategy that is consistent with industry and firm specific conditions. Another problem is that the entire strategic process might seem fruitless, especially if it is treated as an episodic or occasional task. If the result of all that work is a document that gets put on a shelf or in a closet, what is the point? The second purpose of this book is to develop the idea that strategic development is a broad based and ongoing process. Strategy may ultimately be the responsibility of the CEO but it needs (and benefits) from the engagement of others. Done right, that engagement and development aligns the organization more effectively. In addition, the models connect to and reinforce each other. To use them well requires reflection and revision. In short, the process is not ever completely done - it becomes less an end than a shared way of looking at the world.