Strategic Analysis and Choice: A Structured Approach

Strategy and strategic planning at the fi rm level often gets a bad reputation
because managers aren’t trained in it, and the tools are unfamiliar,
infrequently used, and often poorly applied. The outcomes of these
efforts can therefore be incomplete, biased, and far too subjective—and
the results disappointing. One purpose of this book is to overcome this
problem of familiarity by developing a systematic approach to conducting
a strategic analysis. From assessing the general industry environment
to analyzing industry forces and fi rm resources, well-known models are
introduced and explained. This culminates in selecting a strategy that is
consistent with industry and fi rm specifi c conditions.
Another problem is that the entire strategic process might seem fruitless,
especially if it is treated as an episodic or occasional task. If the result
of all that work is a document that gets put on a shelf or in a closet, what
is the point? The second purpose of this book is to develop the idea that
strategic development is a broad based and ongoing process. Strategy may
ultimately be the responsibility of the CEO but it needs, and benefi ts
from, the engagement of others. Done right, that engagement and development
aligns the organization more effectively. In addition, the models
connect to and reinforce each other. To use them well requires refl ection
and revision. In short, the process is not ever completely done—
analysis becomes a lens you constantly bring to bear on your fi rm and its
environment.