Adequacy of Assertion by Kenneth Andrews on Strategy free essay sample

Strategy is a term that comes from the Greek word strategic, meaning generalship. In the military, strategy often refers to maneuvering troops into position before the enemy is actually engaged. In other words strategy refers to the deployment of troops. Once the enemy is engaged attention shifts to tactics. Thus, in business, strategy involves the deployment of resources (like troops in the military sense) towards achieving a vision or an ultimate objective.Kenneth Andrews is first edition of The Concept of Corporate Strategy In 1971 and updated In 1980 defined corporate strategy as the pattern of decisions In a company that determines and reveals Its objectives, purposes or goals, produces the principal policies and plans for achieving those goals, and defines the range of businesses the company is to pursue, the kind of economic and human organization it is or intends to be, and the nature of the economic and non-economic contribution it intends to make to its shareholders, employees, customers, and communities. We will write a custom essay sample on Adequacy of Assertion by Kenneth Andrews on Strategy or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Numerous definitions of treated have been made. However some of these definitions with time and experience have been criticized as having some weaknesses.Generally any good strategy must satisfy the following: 0 C] C] C] C] Fit the situation of the business/ organization Help the company to achieve sustainable competitive advantage Have the ability to boost the performance of the company Be flexible enough to adapt to changing circumstances of the industry and market Be worth Implementing as compared to the forgone alternatives with respect to the risks Involved The adequacy or otherwise) of Kenneth Andrews assertion that the strategy of a company is a purposes or goals, produces the principal policies and plan for achieving those goals shall in the ensuing paragraphs be analyzed.Adequacy of Kenneth Andrews definition of strategy Page 2 The following can be deduced from Kenneth Andrews assertion: 0 0 That the strategy of a company is a reflection of the pattern of decision. These pat tern of decisions in turn determines the objectives, purposes or goals and also the principal policies plan for achieving those goals. 1 . From Kenneth Andrews definition of strategy, we see a true fact that strategy should dictate the kind of decision patterns corporate organizations make. 2. Strategy must always inform the goals, purposes and objectives of an organization.These objectives or goals must finally lead to the achievement of the strategy and aiming at the vision 3. Kenneth Andrews assertion also sees strategy as a unified integrated plan to attain the firms ultimate objective or vision 4. Kenneth Andrews assertion encapsulates the four categories which other definitions of strategy covers (especially y Henry Integer, 1994). Biz: 0 0 Plan, a how, a means from one point to another Pattern in actions over time. For example a company that regularly markets very expensive products is using a high-end strategy. E. G.Jaguar cars, which are very luxurious and expensive, and wouldnt produce a car that sells below a certain high value 0 0 Position, I. E. Reflects decision to offer products or services in particular markets Perspective, I. E. A vision and direction, a view of what the company or organization is to become 5. Andrews definition of strategy also spells out the need for a vision/mission statement and aligns decisions, targets, goals, policies with vision mission statements On the other hand, some limitations/weaknesses criticisms of Kenneth Andrews assertion include: 1 .Kenneth Andrews assertion does not stress on the need for strategy to give the firm a competitive advantage. A winning strategy must always boost the performance of the company. 2. The assertion does not also address on dwelling on the firms core competencies Page 3 3. Flexibility in strategy to adapt to changing circumstances is not well considered or factored in Kenneth Andrews assertion. 4. Kenneth Andrews definition of strategy does not consider how well the strategy fits the situation of the company 5.Again, the assertion does not show any action to capture emerging markets 6. Assessment, considerations and analysis of the external environment is not well taken care of by or possible effect of industry players 8. The sensation doesnt seek to analyze and mitigate possible threats or other external forces such as the bargaining power of appliers/buyers, rivalry within the industry, barriers to entry and threats of new entrants.