Strategy, Process, Organization, and Systems

Strategy, Process, Organization, and Systems

DOI: 10.4018/978-1-4666-2512-9.ch002

Abstract

Building on the understanding of the theories and models of firms, this chapter reviews the basic principles of strategic management of business enterprises. Firstly, the basic principles of business strategy are explained. Secondly, the role of corporate strategy and its relationships with business unit strategies are discussed. Thirdly, this chapter describes the principles of strategy maps—a customer-centered strategic alignment model which is widely used in industry as a methodology for managing the diligent execution of strategy to deliver on the differentiating customer value propositions. Finally, because of the increasing importance of corporate governance compliance, such as Sabiane Oxley, firms must also pay due consideration to ethics in information technology deployment.
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Basic Principles Of Strategy

Strategy is not about finding the universally best way of competing, nor it is an effort to be all things to every customer. Strategy is about defining a way of competing that delivers unique value in a particular set of uses or for a particular set of customers (Porter, 1985). Indeed, as Thompson and Strickland (2003, p. 3) postulate, “a company’s strategy is the game plan management is using to stake out a market position, conduct its operation, attract and please customers, compete successfully, and achieve organizational objectives.” To establish and maintain a distinctive strategic positioning, Porter (2001) stipulates that a company needs to follow six fundamental principles:

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