Porter, Mintzberg What is strategy?

Topic 1

Summary
This particular paper is concerned with two different articles and they investigate the question
"What is the strategy?" by analyzing the articles, highlighting the main points of each article and
focusing on the authors' views of the observing topic.
The first article named "What is Strategy?" by Michael E. Porter was published by Harvard
Business Review in 1996. Porter, in his article, presents an elaborated understanding of a
strategy term and its importance of defining the strategy for sustainable and successful
businesses.
The article divided into five sections and in these sections widely discussed follows; (1)
operational effectiveness and its difference from the strategy (2) unique activities as a
competitive advantage (3) necessity to define and choose the right trade-offs (4) ability to
combine competitive advantage with sustainability and last but not less important (5) impact of
management in the strategy.
The term "operational effectiveness (OE)" defines by Porter as having an advantage by
producing single activities on an operational level better than competitors. Although OE's
efficiency is greater than the strategic position, compared OE, strategic positioning's value is
greater. Moreover, OE has lower average costs per unit than strategic positioning. As was
mentioned before by definition the most significant difference of OE is the performance of
related activities by the better way when the strategic position stands for performing in a
distinctively different way or might have an interest in other areas than rivals.
According to the previous passage, competitive advantage by Porter is being different, which
require creating a unique and valuable position. He affirms that a company should concentrate
on one particular area where it competes better than contenders. In the article, a way of creating
uniqueness might be by following; (1) variety-based (2) needs-based and last but not least (3)
access-based positioning.
A unique position is the essence of strategy, however, it is not enough to guarantee a sustainable
advantage. Porter in his article also highlights that a sustainable strategic positioning requires
trade-offs, which means that more than one thing necessitates less of another. Creation of a need
for the choice and protection against repositioning and straddlers are also tasks of trade-offs.
Success and reaching it requires the ability to put attention and combining all of the factors and
aspects into one, not only particular parts what and how a company will perform but also how
activities are related to each other, as said by the author; "Everything matters for reaching the
success". The fitting and managerial core is crucial at strategic positioning.

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Porter, Mintzberg What is strategy? Topic 1

The second article "Of Strategies — deliberate and emergent" by Henry Mintzberg and James A.
Waters published by John Wiley & Sons, in 1985 is a charged for giving another view to
strategy. The aim of the second article is giving a better understanding of the strategy, its types,
their variety and complexity, and finally how it works in practice.
According to them, the strategy is set or sequence of actions assumed by someone for reaching
specific outcomes, also it might be proposed goals of an organization, which achieves by the
specific way. Organizational strategies by Mintzberg and Waters (1985) were classified as
deliberate, where the collective goals, plans, and vision of an organization realized by internal
participates (mostly by leadership) and without external influences, and as emergent strategies.
When strategy emerges colliding of aims with a changing reality over the time and it should
adapt into this time requirements.
By simplifying, in the deliberate strategy main focus on control and leadership role/decisions in
the organization, and on the other hand, an emergent strategy might be described as an
organization in learning over the time, what worked in practice. It can be a set of actions steady
over time, "a realized pattern was not expressly intended" in the primary plan of strategy.
However, both of these above-named strategies are not in existence purely. Because of
compatibility without any intentions.
In their article (1985) infers 8 types of ideal strategies; (1) the planned strategy, (2) the
entrepreneurial strategy, (3) the ideological strategy, (4) the umbrella strategy, (5) the process
strategy, (6) the unconnected strategy, (7) the unconnected strategy and the last one is (8) the
imposed strategy.
By giving a brief overview of strategies might say follows;
In the planned strategy, the organization must engage a lot of resources to a particular mission.
By the second strategy focus more on the person, who is responsible forthe cooperetions. This
figure articulates a vision and needs to this cooperation environment. This person could be in the
managerial position and he might influence most of the valuable decision. On the other hand, in
the third strategy named the ideology strategy, the vision doesn't belong to one particular person
but also supports and shares by other members of the company.
Creation of simply boundaries and the establishment of the general directions for the company
usually used in the umbrella strategy, certainly in necessity umbrella could be removed. In the
next strategy involves only processes, which answer companies requirements and its content, this
way of setts up calls the process strategy and this strategy is usually common in unpredictable
and uncontrollable environments. The unconnected strategy is usually using by daughter
companies, sub-units, franchises and at the complex-structured and connected companies,

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Porter, Mintzberg What is strategy? Topic 1

however, they are loosely connected with mother company, they although have own strategies.
By the seventh consensus strategy, decisions and actions commence collective action. By this
strategy, actions happen slowly gather by regulation. Finally, the imposed strategy, here the
strategy set up by interacting with external players. By most of the cases here the influence of
environment is eternal.

Critique
After providing introductory and contextual information to both articles we can summarize
follows.
In Porters article, we observe the following conclusions a company's primary goal is improving
its operational effectiveness, which leads to the productivity shift. Where the main focus on lies
on creating uniqueness, which makes business strategy competitive. Choosing a new position
depends on the ability to find new trade-offs. According to previous and force a new system of
matched pursuits into a sustainable position. Despite having a competitive advantage is
important by creating business and be able to compete is important, in my opinion, it is not
enough by maintaining business and making it long run. Michael Porter's strategy gives fast but
although temporary results, in addition, the strategy is not only focusing on the production. By
keeping this point should be also highlighted that nowadays is Porter's view of strategy is not
actual, as his article didn't occupy all aspects and nuances of the business environment. On the
other hand, as said in the Porte's article "Everything matters for reaching success", Mintzberg
and Waters, the understanding of strategy is widened. Moreover, the Mintzberg and Water's
strategy focuses not only on production but also the external and internal environment affects the
organization and the details in organizations structure is crucial, not only position on the
competitive market. According to them, different organizations might have different strategies
and not only activities advantage compared with rivals.

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