Strategic Management: thought and action

We use the resource-based theory of the firm as our primary orienting device, but we also stress the inescapable paradoxes of strategic thinking. The basic idea is that strategic leadership is needed precisely because there are no easy formulas to navigate complex settings. We emphasize that strategic ideas are developed almost continuously, in the midst of action, with a wide range of inputs from within the organization and beyond. The book is therefore a learning tool, rather than a conventional, more static textbook. (From Chapter 1) Everyone is a strategist. We all act, everyday, to achieve desired results – trying to avoid being the person left clearing the dishes after dinner, seeking a desired job interview, or demonstrating for a worthy cause. This book focuses on business strategists whose purpose is to create something of value to customers or clients, and make enough money doing so to stay in business. Their activities are similar to what we all do to achieve our individual desires. We collect resources and organize activities to achieve our objectives. We learn from our own failures and successes, along with outcomes we observe for others. As the world changes, our strategies change. Strategic 'success' is in the eye of the beholder. Since our primary focus is on profit-making firms, we will describe "above industry-average profitability" as an important measure of success. It is a widely used comparative measure of ability, and one very few firms manage to achieve over time. When other goals are added (to be socially responsible as well as profitable, for example), the strategist’s task becomes even more difficult.