Strategy
Pankaj Ghemwat(textbook) : Strategy
Strategy can be defined as determination of the basic long term goals and objectives of the
organization and the adoption of courses of actions and allocating resources necessary for carrying
out those goals.
SWOT analysis
s- Strengths
w- Weakness
o- Opportunities
t- Threats
Many firms distinctive competence was not defined
So to solve this problem strategist had to decide which aspects of the firm were enduring and
unchanging relatively over long periods of time and which were very responsive to the changings in
the market and pressures of the environmental force. This help to understand that strategy in the
long run firm development
Distinctive competence was used with the context that in case of long term investment there would
be greater risk.
So if the opportunities a firm is seeking is said to outrun the present distinctive competences then
firms willingness has to be taken into account like if they want to take such big gamble.
, Ansoff theory was based on the fact that
there should be a common thread with its existing products. Common thread being the firm’s
mission commitment to exploit an existing need in the market.
BCG group
Experience curve: it was developed to explain the price and competitive behavior in the extremely
fast growing element. It was developed to understand why one competitor out performs the other
in the same set of resources and comparable management skills.
Claim: each doubling of cumulate output, total costs decline by 20% because of economies of scale,
organizational learning and technological innovations.
Bruce claimed that with this experience curve one should be able to predict stability of
competitiveness between firms and able to calculate the market share changes and effects of
growth due to this.
Portfolio planning: Growth –share matrix the relative potential of the diversified firm’s portfolio of
business units as areas of investment was compared by plotting them on the grid
So the basic logic here was to maintain a balance between cash cows (mature business) and stars
and while allocation some resources to the fund question mark. Dogs were sold off.
Pankaj Ghemwat(textbook) : Strategy
Strategy can be defined as determination of the basic long term goals and objectives of the
organization and the adoption of courses of actions and allocating resources necessary for carrying
out those goals.
SWOT analysis
s- Strengths
w- Weakness
o- Opportunities
t- Threats
Many firms distinctive competence was not defined
So to solve this problem strategist had to decide which aspects of the firm were enduring and
unchanging relatively over long periods of time and which were very responsive to the changings in
the market and pressures of the environmental force. This help to understand that strategy in the
long run firm development
Distinctive competence was used with the context that in case of long term investment there would
be greater risk.
So if the opportunities a firm is seeking is said to outrun the present distinctive competences then
firms willingness has to be taken into account like if they want to take such big gamble.
, Ansoff theory was based on the fact that
there should be a common thread with its existing products. Common thread being the firm’s
mission commitment to exploit an existing need in the market.
BCG group
Experience curve: it was developed to explain the price and competitive behavior in the extremely
fast growing element. It was developed to understand why one competitor out performs the other
in the same set of resources and comparable management skills.
Claim: each doubling of cumulate output, total costs decline by 20% because of economies of scale,
organizational learning and technological innovations.
Bruce claimed that with this experience curve one should be able to predict stability of
competitiveness between firms and able to calculate the market share changes and effects of
growth due to this.
Portfolio planning: Growth –share matrix the relative potential of the diversified firm’s portfolio of
business units as areas of investment was compared by plotting them on the grid
So the basic logic here was to maintain a balance between cash cows (mature business) and stars
and while allocation some resources to the fund question mark. Dogs were sold off.
