Knowing Yourself and Knowing the Others

This chapter introduces the basic information for the need of strategic decision-making, including internal key information of the organization, external information. Strategic decision makers are required to conduct analysis and have a deep understanding of the industry trend and of the organization resources and capabilities.

Firms Strategies and Their Three Elements

OutlineThe chapter elaborates on what each specific strategy means and how the three elements of each respective strategy are understood. Studies in this chapter reveal that the Competitive Strategy (or SBU Strategy) is well studied and concluded into systematic academic fruition. However, the academic community has not yet offered systematic insights in corporate strategy in spite of adequate research in competitive strategy and tactics.

Evaluation of Strategy Based on the Three Elements

The implementation of each strategic decision involves investment of a large amount of capital, human resources and managerial efforts. An incorrect decision often means the failure of an investment. Risks of strategic decisions can be reduced if we can re-examine or identify whether the strategic decisions that have been made are consistent with the actual situation of the company and with the external environment and industry development. Based on the basic principles of strategic decision-making presented in this book, this chapter puts forward the basic logic and thinking of the evaluation of strategic decision-making from the standpoint of the three elements of strategy.

Fundamental Elements of the Strategy Concept

This chapter answerers and elaborates on the question of “what is strategy” which has been controversial in the discipline of strategic management over the past half a century. On the basis of proposing the “problem-oriented strategy” and “goal-oriented strategy”, the theory of three elements of the strategy concept is put forward, and is introduced in detail. The chapter suggests that the lack of any element of the three cannot constitute a complete strategy. A strategy without “development goal” is undirected and one that cannot identify “development problem” is confusing, while one without a “guideline” is unrealistic. The chapter also discusses the integrated relationship among the three elements.

Implications for Future Research

On the basis of the three elements of strategy, this chapter puts forward some follow-up research questions and prospects mainly from the following aspects. The first is the study of factors that have influences on the quality of strategic decision. Factors include individual aspects of decision-maker, strategic decision-making information factors, approaches of strategic decision-making, etc. The second is about normative studies. They are about how the world ought to be or how strategy decisions ought to be in given situations. Outcomes of the studies can provide guidance to industry decision makers when facing development issues. Future research includePerhaps the impact of strategic decision-makers on the quality of strategies is far beyond our imagination.

Introduction: What Goes Wrong in Our Understanding of the Strategy Concept?

The term strategy in Chinese originated from war, and the book The Art of War by Sun wu in the Spring and Autumn Period.

Tactics and the Three Elements of Strategy

What is the relationship between tactics and strategy? This chapter answers the question through a military example. In the framework of the three elements of strategy, it presents the relationship between strategy and tactics in Strategic Business Unit (SBU), and at corporate level. The question of whether tactics should be included in strategies is raised and answered.

Strategic Decision Biases and Decision Making Principles

This article, through some examples, introduces a few types of biases in strategic decisions and the reasons for their biases. It proposes a strategic decision tendentious model on the basis of consideration of internal and external situations. Three important principles that ought to be complied with in the strategic decision makings are proposed and introduced.

What Is an Organizational Strategic Decision?

Based on military strategies, the chapter details the three elements of strategy, which represents an integrated decision-making on three core questions concerning a company’s development. First, is the decision on determining long-term development goals; second is that on identifying key development problems and main challenges; third is that on formulating guiding principles for solutions to the main challenges, making it an interdependent whole indispensable to each other. In other words, an overall strategy decision is composed of three sub-decisions, which are related and are matched with the three core elements of the strategy concept.

Why Are There Over 90 Definitions of the Strategy Concept?

Outline: Based on the Three-multiple problem of literature on strategy definition, this chapter analyses literature on strategy definition based on a special research approach developed by the author. The reasons for the aforesaid Three-multiple problem are examined with a sample over 30 definitions. It is found that there are mainly four reasons contributing to the Three-multiple problem. (1) different wordings are used to express the same meaning; (2) a variety of wordings are used to illustrate the content of different sub-classes that are under the same category; (3) different understandings of the strategy concept cause the use of various wordings; (4) extensions of concept are included in literature on strategy definition.