DIAN ARIVANI (NPM.

1106112302)

[ARE YOU SURE YOU HAVE A STRATEGY ? BY DONALD C.H AND JAMES W.F]

This article talking about the guidance for constitutes a strategy and what should be the outcome. Almost, when executive call everything strategy, and end up with a collection of strategies, they create confusion and undermine their own credibility. Because of that, with some elements of a strategy, executive could communicate these threads of a strategy to their organization in the mistaken belief that doing this will help managers make touch of choices. Nowadays, the business general, whether they are CEO or entrepreneurs must have a strategy and think strategic. A central, integrated, externally oriented concept of how the business will achieve its objectives. Without a strategy, time and resources are easily wasted on piecemeal, disparate activities and the result will be a potpourri of disjointed, feeble initiatives. A strategy consist of an integrated set of choices, but it isnt a catchall for every important choice an executive faces. The elements of strategy; which is consist of five elements they are : 1. ARENAS; the most fundamental choices strategies make are those of where, or in what arenas, the business will be active. Its important to be as specific as possible about the product categories, market segments, geographic areas, and core technologies, as well as the value-adding stages (product design, manufacturing, selling, servicing, distribution) the business intends to take on. 2. VEHICLES; the means that is needed in order to achieve the goal after deciding the arenas in which the business will active. Selection of vehicles should not be an afterthought or viewed as a mere implementation detail. Failure to explicitly consider and articulate the intended expansion vehicles can result in the hoped-for entrys being seriously delayed. Unnecessarily costly, or totally stalled. 3. DIFFERENTIATORS; it is about how the firm will win in the marketplace, how it will get customers to come its way. It is needed to make up-front, deliberate choices, because without that, two unfortunate outcomes loom. First it top management doesnt attempt to create unique differentiation, top management may seek to offer customers across the broad superiority, trying simultaneously to outdistance competitors on too broad an array of differentiators. 4. STAGING; the speed and sequence of major moves to take in order to heighten the likelihood of success. Decision about staging can be driven by a number of factor, they are resources, urgency, the achievement of credibility, and pursuit of early wins. 5. ECONOMIC LOGIC; at the heart of a business strategy must be a clear idea of how profits will be generated, not just some profits above the firms cost of capital. It is not enough to vaguely count on having revenues that are above costs. Unless theres a compelling basis for it, customers and competitors wont let that happen. All five element strategy are important enough to require intentionality. Most strategic plans emphasize one or two of the elements without giving any consideration to the others. The five elements also for preparation and investment must align with and support each other. The strategist is in the best position to turn to designing all the other supporting activities. The five elements of the hub or central nodes for designing a comprehensive, integrated activity system. In this article, there are some of the skepticism about strategy stems from basic misconceptions that company should avoid. First, strategy need not to be static, it can involve and be adjusted on an ongoing basis. Second, a strategy doesnt require a business to become rigid. It can help to intentionally build in many forms of flexibility. Third, a strategy doesnt deal only with an unknowable, distant future. The appropriate life spans of business strategies have become shorter in recent years, 2-3 years is often more appropriate than 5-10 years. Strategy not primally about planning its is about intentional, informed, and integrated choices.