STRATEGY
					"Strategy is the overall plan for deploying resources to establish a favorable position…
Four common elements to all strategy						a tactic is a scheme for a specific action."				p.14
	1. Goals that are:
		Simple				Strategic decisions:
		Consistent					Are important
		Long-Term					Involve a significant commitment of resources
	2. Understanding of Competitive Environment						Are not easily reversible
	3. Objective Appraisal of Resources
	4. Effective Implementation					Types of military strategy adapted for business:
							Offensive/Defensive strategy mix
For a strategy to be successful it must be consistent with the:							Outflanking vs. Frontal Assault
	External Environment						Roles of Graduated Responses
	Internal Environment							To Aggressive Initiatives
		Goals					The Benefits of Surprise
		Values					Deception
		Resources					Envelopment
		Capabilities					Escalation
		Structure					Attrition
		Systems
						Ultimate aim of business is rarely the total destruction
Benefits of strategy:							of competition (as it is in war)
	Direction					There has been a SHIFT IN EMPHASIS
	Purpose						from planning to strategy making
	Deploy resources in the most effective manner					planning: detailed mgmt of growth paths
	Coordinate the decisions made by different individuals					strategy: positioning the firm in markets
							and in relation to competition
						since the 1974&1979 oil shocks -> macro instability.
							inference: Macro Instability -> Shift In Strategic Thinking Models
Strategy Wisdom From Academia and Industry:
	You can use industrial organization economics to analyze the determinants of firm profitability (michael porter, HBS)
	How are profits distributed between the different firms in a given industry? (other researchers)
	What is the impact of market share and learning on costs and profits? (Boston Consulting Group)
	What determines industry profitability and what determines profitably differences within industry? (PIMS Project)
	The resources and capabilities of the firm are the main source of competitive advantage & foundation for strategy
		This is known as the resource-based view of the firm
	Old status quo: Industry Analysis
			Firms should seek out attractive markets and favorable strategy positions
			Resulted in substantial imitation of strategies between firms
	New model: resource-based view of the firm
		firms look to differentiation to create value
		firms exploit differentiation to establish unique positions of competitive advantage
			…a different set of activities to deliver a unique mix of value (Michael Porter, HBS)