Devising a Strategy for Accor Research Paper Example | Topics and Well Written Essays - 3750 words

Devising a Strategy for Accor - Research Paper Example Johnson et al. confer additional dimensions to strategy in their definition: i) long-term perspective, ii) meeting competition and iii) stakeholder value. According to them, a strategy is " the direction and scope of an organisation over the long term which achieves the advantage for the organisation through its configuration of resources within changing environment and to fulfil stakeholder expectations. (2004) After understanding what 'strategy' means the next logical step is to design the 'strategy' and work it. Of the four elements that make 'strategy', according to Mintzberg's definition, internal competencies and shortcomings are internal and therefore within the organisation's control. The other two, viz. changes in the environment and contingent moves by intelligent opponents are external and therefore need to be carefully monitored to be turned into an advantage or counter-acted. The external elements, according to Porter evolve into five forces that impact business success as i) industry competitors, ii) potential new entrants, iii) substitutes, iv) suppliers and v) buyers. (2004 4). In order to meet the challenges of the five forces and out-perform competitors, according to him, there are three generic (meaning they are applicable across industries) strategies. They are i) cost leadership, ii) differentiation and iii) focus. (2004 35) Ireland et al. describe six components of strategic leadership that help organisations navigate the choppy waters of the twenty-first century businesses: they are i) determining the firm's purpose or vision, ii) exploiting and maintaining core competencies, iii) developing human capital, iv) sustaining an effective organisational culture, v) emphasizing ethical practices and vi) establishing balanced organisational controls. (2005)