Business Strategy Nikolaos Karanasios Assistant Professor CEO of - PowerPoint PPT Presentation

Business Strategy Nikolaos Karanasios Assistant Professor CEO of the Serres Business & Innovation Centre 01

Concept and History of Strategy

Concept of Strategy Etymology from Sanskrit सॄतती = sRti Words from this root: Street, Strada, Strata, Strasse, странствие, Στρατός, Στρατηγός The general meaning is “road” A mark on land that one can walk on A paved land line that one can walk to go someplace (strati= layers) ΣΤΡΑΤΟΣ = army (originally the infantry)

Concept of Strategy ... ΣΤΡΑΤΗΓΟΣ From the words: ΣΤΡΑΤΟΣ = Army & ΗΓΟΥΜΑΙ-ΗΓΕΤΗΣ = Leader But, Do army Leaders make war, or follow the latin adage; “ Si vis pacem, para bellum”?

Concept of Strategy ... There are numerous definitions, but the concept remains the same over the centuries. The LEADER must exploit the potential and maximize the benefits of the organization, in the long-run. So, Strategy is a predetermined use of peace and war outside and inside the organization, which are expected give the best results over time....

WAR...  Truce  Offense  Conflict  Aggression  Fringe  Raid  Combat  Invasion  Blitz  Battle  Siege  Fight  Devastate  Confrontation  Ruin  Defend  Destroy  Enemy  Attack  Opposer  Competition  Adversary  Competitor

Similar Concepts to Strategy  Objectives ● Master Plan  Tactics Objectives Master Plan Tactics  Targets  Policy ● Manoeuvring Targets Manoeuvring Policy  Tasks  Planning Tasks ● Negotiating Planning Negotiating  Roles  Scheduling Roles Scheduling ● Leadership Leadership  Milestones  Programming Milestones Programming ● Foresight Foresight  Progress  Values Progress Values ● Value-chain Value-chain  Success  Mission Success Mission ● Fusion Fusion  Philosophy  Vision Philosophy Vision ● Conglomerate Conglomerate  Roadmap  Budgeting Roadmap Budgeting

Some principles of Strategy ● Strategy is Secret and Remains Secret Strategy is Secret and Remains Secret ● Strategic Plans are elaborated by top executives only, Strategic Plans are elaborated by top executives only, employees excluded employees excluded ● Strategic planning is continuous not scalar Strategic planning is continuous not scalar ● Strategic plans are not single plans but sets of plans Strategic plans are not single plans but sets of plans ● Strategic plans are long term (5-10 years) plans, at Strategic plans are long term (5-10 years) plans, at least least ● Strategic plans are based on alternatives and not on Strategic plans are based on alternatives and not on conflicts conflicts ● Strategy is about the character of the business Strategy is about the character of the business subject subject

But, what is the concept? This is not a definition; This is not a definition; Strategy is: Strategy is: A methodological (even scientific) A methodological (even scientific) Procedure Procedure Of deciding Of deciding And achieving And achieving A role A role In the competing world In the competing world

Methodology ΜΕΘ-ΟΔΟΣ = the road map through ΜΕΘ-ΟΔΟ-ΛΟΓΙΑ = Methodology = reasoning the choice of the road to follow (for the solution of a problem) Methodology is the systematic (ΣΥΣΤΗΜΑ = set together) sequence of actions in order to achieve a desired result. Strategy is a methodology while it is a systematic sequence of deciding about the desired result and then the design of the particular activities of satisfying this desire.

Scientific? Science [ΕΠΙΣΤΗΜΗ] may be defined as: Science [ΕΠΙΣΤΗΜΗ] may be defined as: Knowing the exact expected result of a specific Knowing the exact expected result of a specific action or activity. action or activity. What sciences apply in business? Mathematics – provide models Statistics – predict a possibility Accounting – Calculate values Finance – compute the cost of money Human behavior – forecasts people reactions