Strategy and Goals
Chandler (1962) defines strategy as the "determination of the basic
long range goals and objectives of an enterprise, and the adoption of courses
of action and the allocation of resources necessary for carrying out these
goals". Thus the primary focus is the organization's link to the environment.
It further defines 1) selection of domain (what business will be in) and
2) selection of competitive stance (how will we compete). Porter (1980)
has defined a number of generic competitive strategies, including:
1. Overall cost leadership - high volume, low cost
2. differentiation -- unique, high brand image
3. focus -- on a particular buyer group, market
Strategies often confuse intentions with actions, official with operational
goals (Scott p. 287). Mintzberg (1987) suggests a distinction between "intended"
strategy (plans) , "emergent" strategy (unplanned patterns of
behavior), and "realized" strategy (actual behavior planned or
unplanned). Often unplanned activities (like out of R&D) change corporate
strategy from the bottom ranks up.