What this is

Strategy is a powerful tool for organisations to achieve their goals. It draws upon various theories such as military theory, management theory, game theory, complexity theory, and systems theory to provide insights into decision-making, competitive dynamics, complexity, and interconnectedness. By incorporating principles from these theories, organisations can develop adaptive, effective and sustainable strategies for businesses of the future.

Why this is important

The significance of strategy lies in its ability to provide direction, make decisions, and align actions in complex environments. Modern organisations are increasingly embracing holistic and dynamic perspectives, as opposed to traditional reductionist approaches. By incorporating principles from these diverse theories, such as military theory, management theory, game theory, complexity theory, systems theory and more, organisations can develop strategies that are adaptive, resilient, and effective.

How we do it : the methodologies and models

To develop a strategy, organisations typically follow two major processes: development and implementation. Development involves analysing the environment, making a diagnosis, and formulating guiding policies. It incorporates concepts such as business models, competitive advantage, value chain, and mission statements. Frameworks and tools like the Balanced Scorecard, Blue Ocean Strategy, OKRs, Hoshin Planning, and Scenario Planning support the strategy development process.

Implementation involves setting goals, allocating resources, and communicating guiding principles. It requires analysing the environment, engaging in strategic planning and thinking, and translating strategies into action plans. It also involves foreseeing future consequences and adapting to changes in the dynamic environment.

By following these processes and utilising methodologies, concepts, and tools, organisations can effectively develop and execute their strategies. This approach aligns their actions with their strategic plan, helping them achieve their desired goals.

Overall, the incorporation of diverse theories and methodologies enables organisations to navigate complexity, make informed decisions, and adapt to the ever-changing business landscape.

Key concepts in strategy development:

Key frameworks and tools in strategy development:

Key steps in strategy implementation:

Researched and written by Rebecca Agent with editorial support from Grammarly (English AUS) and ChatGPT

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WORKS CITED

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Lindstädt, H., & Müller, J. (2009, December 2). Making game theory work for managers. Retrieved from McKinsey: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/making-game-theory-work-for-managers

Porter, M. E. (1980). Competitive Strategy. New York: Free Press.

Porter, M. E. (1996, Nov - Dec). What is Strategy. Retrieved from Harvard Business Review (Magazine): https://hbr.org/1996/11/what-is-strategy