Essay on Major Theories, Frameworks, Techniques, and Applications

2233 Words 9 Pages
Major Theories, Frameworks, Techniques, & Applications
What is Strategy?
A majority of our course centered on the seemingly simplistic question: What is strategy? Strategy is one of those words that several individuals know, but cannot necessarily define; I was one of those individuals prior to this course. Strategy is about positioning an organization in a way that is competitively advantageous and can deliver long-term, sustainable, and superior results. This ranges from making decisions based on which industries to participate in, what goods and services to offer, and how to allocate resources most efficiently. Strategy is different from tactics because it is a long-term approach to achieving a broader goal, whereas tactics are
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It must also describe the company’s current position and the desired end results. These beginning and ending markers must also be measurable and quantifiable so that a company will know when it has met its objective. Providing measurements allows a given company to benchmark its success over time and alter the SMART objectives if necessary. Additionally, objectives must be achievable and realistic so that the company is motivated to achieve them. If an objective is much too ambitious, management may not have the motivation to attempt to reach the goal because they know it can never be attained in the given time period. The goal must also be relevant in that it aligns with the company’s basic strategy. Finally, a goal must be time-oriented so that the company can set benchmarks and monitor its performance over a period of time. This time period must be realistic and should typically not exceed five years so as to more accurately project the desired results.
Porter’s Five Forces Porter’s five forces model is widely used to analyze an industry. It can be used to assess potential profitability, the degree of industry attractiveness, and the degree of competition. The model is comprised of the following forces:
• The threat of entry: an industry becomes less competitive if the barriers to entry are high, so it is in the best interest of the firms currently in an industry to try to prevent new firms from entering. Threats to new entry may include time,

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