Good Strategy, Bad Strategy



Good/Bad Strategy

Thesis Statement

The book helps to understand about the strategy's real meaning from both the conceptual perspective and strong case studies of famous companies such as US Army, NASA, Nvidia, and Apple that had fruitfully applied good strategy. It also provides the understanding of the bad and good strategies. Rumelt starts by pointing out that maintaining and applying a strategy is the main task of the leader. The book gives detailed explanation about the policies and the implementation of both positive and negative examples. However, through examples the consequences are elaborated and results are evaluated.

Major Learning Outcomes of the Book

In the book author defined the strategy as the work engaged by the leaders of the company, but only just because power of some one is the thinking, it does not build it strategic. According to the book designing key priorities, budgets, vision and goals are not strategy, while some people consider those as the strategy for the company.

The book shows that the strategy has three elements. The author calls the good strategies as “Kernel”. First is the diagnosis of obstacles and main challenges experienced by the company. Second is the guiding policy for the organization that is how it can plan to obtain or beat the challenges. Third is the collection of coherent actions and supply commitments made to carry out the leading policies. The guiding policy is the final way of approaching that will be used to conquer the challenges identified in the diagnosis. Writer says that guiding policy is not about the set of vision or goals for the strategy. The policy does not take anywhere the company wants to go in order meet success; instead it shows some guidelines or general rules for supporting the organization to meet the target.

Intense preferences are intriguing when you can find methods for expanding their worth. As such what would you be able to do with this preference that will accelerate better conclusions contrasted with another person? Keep tabs on finding approaches to 1) develop the point of interest, 2) expand it, 3) make higher interest for what the playing point offers or 4) make it harder for others further bolstering get this good fortune.

Rumelt claimed that the good strategies are rare. The reason behind this is that the excellent strategy need commendable leader to make choice of plan and strategies, and does not say ...