Strat 1

uncertainty caused by competing parties seeking optimization of individual returns

• 1)Goals:objectives/position
• 2)Deliberation: reasoning, predicting, planning, designing3)Action: interrelated and coordinated
• 4)Integration: connections among coherent deliberation, actions, and goals

earn money, survival/desirable position, increase social welfare

market shares, productivity, innovation, quality

• -Identify alternative paths/choices to achieve goals
• -Evaluate alternatives and situations
• -Determine sub-goals
• -Vision

• -Understanding competitors, customers, info collecting (collecting data,planning, designing)
• -Hiring, advertising, equipment updating (implementation of strategy)
• -**Actions must be interrelated and coordinated**

• -Integration of thinking, future positions, and actions
• -Consistency in active thinking and interrelated actions leads to the achievement of goals

• 1)Actions/thinking w/o goals
• 2)Irrational thinking that's not executable
• 3)Random Action
• 4)Thinking w/o actions
• 5)Achievement of goals cannot be attributed to reasonable thinking and interrelated actions

management of strategy formulation and strategy implementation to achieve long-term survival while earning sustainable returns

• 1)Process of managing strategy: deliberation over business comp. + critical actions
• 2)Consist of all mgmt. components
• 3)Org. Level goal: Profit target
• 4)Long=term
• 5)Sustainable

• 1) Proactive Strategy: Thinking → Actions → Goals
• 2) Emergent Strategy: Thinking → Actions → Rethinking → Actions → Goals
• 3) Spontaneous Strategy/Strategy Shift:  Actions → Thinking → Actions → Goals

Parties/individuals with the right to claim the outcomes of business

Managers, employees, etc

shareholders and creditors, etc

customers, suppliers, governments, unions, etc.

• 1)Goal conflicts among stakeholders
• 2)Competitors are always watching
• 3)Uncertainty inside and outside
• 4)Uncontrollable issues
• 5)Knowledge constraint of firms
• 6)Cognitive limitation of strategists