CROSS THE CHASM- Geoffrey Moore, in his book Crossing the
It establishes dominance and brings
Chasm, states that organizations are given opportunities to
be creative in the context of the environment.
He adds that opportunities are around, it is the
creative mind that wins. Creativity is strategy and strategy is
creativity.
GENERAL ELECTRIC- The GE-McKinsey Matrix (a.k.a. GE
Matrix, General Electric Matrix, Nine-box matrix) is a portfolio
analysis tool used in corporate strategy to analyze strategic
business units or product lines. This matrix combines two
dimensions: industry attractiveness and the competitive
strength of a business unit into a matrix.
JACK WELCH- Jack Welch was an Irish chemical engineer with
a PhD in chemical engineering from the University of Illinois.
-With no passion for bureaucracy, he went on to create a flat
management hierarchy. He abolished various positions.
- He challenged his members to action.
- He propagated the strategy, "Fix it, sell it, or close it."
BALANCED SCORECARD- Strategy is balanced scorecard.
Being able to quantify performance is a competitive strategy.
It gives organizations real measurement figures, thereby
allowing them to plan and devise ways of attaining their set
goals.
STRATEGY MAPS- Strategy maps are visual tools used in
identifying strategic goals, designing strategies, and
implementing them. They are used to connect the intangible
assets to value-creating processes. They show the four
perspectives of the balanced scorecard in four layers:
KAPLAN AND NORTON- According to Kaplan and Norton, it is
a strategy template which illustrates four important
perspectives for performance measurement, namely, learning
and growth, customer, internal process, and financial.
BENCH MARKING- Benchmarking is a process of measuring
the performance of a company's products, services, or
processes against those of another business considered to be
the best in the industry, aka “best in class.”
RE-ENGINEERING- In their book Re-engineering the
Corporation, Michael Hammer and James Champy looked at
technology as an important strategy to moving organizations
or businesses toward achieving corporate or entrepreneurial
success faster.
LI- Mere possession of common knowledge may or may not
assure survival but ownership of intellectual capital generates
Li.
-Li refers to any gain, profit, advantage, and benefits.
- It is being the best, attaining the highest position, amassing
wealth, or creating monetary advantage.
- Li is more than survival. It propels the organization to
become monopolistic.
- It creates leverage.
about comparative advantage.
INTELLECTUAL CAPITAL- Intellectual capital includes
intellectual property ownership, human resource assets,
market assets, and infrastructure assets.
FELINE YOUNG- Strategy is intellectual capital. Felina Young
defined intellectual capital as the synergistic confluence and
interrelationships of the organization's valued resources.
PAUL HAWKEN, AMORY, HUNTER LOVINS- Strategy is natural
capital. In the book Natural Capitalism, Paul Hawken, Amory,
and Hunter Lovins look at strategy as natural capital.
CONTINUOUS ADAPTATION- Adaptation strategy concerns
specific ways in which the firm makes adjustments, as it seeks
to survive and capitalize on external circumstances. Such
adjustments can be made in a variety of product, market and
resource management areas (Ginsberg, 1988; Snow and
Hrebiniak, 1980).
KENICHI OHMAE- “The Mind of the Strategist”
Kenichi Ohmae writes that the mind of the strategist
is creativity.
DIFFERENTIATION- Your differentiation strategy is the way in
which you make your firm stand out from otherwise similar
competitors in the marketplace. Usually, it involves
highlighting a meaningful difference between you and your
competitors. And that difference must be valued by your
potential clients
RICHARD PASCALE- Strategy is mindset. Richard Pascale, in
his book Managing the Edge considers strategy as a frame of
mind and an attitude.
Pascale says that organizations should develop within their
system an outlook that is deliberate and monitored. He gives
this example about success, saying, "Nothing fails like
success."
CONCEPT- Intellectual Elasticity, Mindset, Learning, Natural
Capital, Intellectual Capital
STRATEGY-multifaceted
INTELLECTUAL ELASTICITY- Strategy is intellectual elasticity.
Considered as Japan's only management guru, Kenichi Ohmae
wrote The Mind of the Strategist in 1982.
-He says, "Strategies stem from creative minds and not from
rote memory. There are no magic formulas for creating
brilliant formulas."
ECONOMIES OF SCALE- Economies of scale is a condition
exhibited when the average cost (AC) or the cost per unit of
output declines over a range of output (product/ service).
IMPLICIT CONTRACT- In the context of the labor market, an
implicit contract is an employment agreement between an
employer and an employee that specifies how much labor is
supplied by the worker and how much wage is paid by the
employer under different circumstances in the future.
KEIRETSUS- Keiretsu is a Japanese term referring to a
business network made up of different companies, including
manufacturers, supply chain partners, distributors, and
occasionally financiers.
NASH EQUILIBRIUM- a Nash equilibrium is a set of strategies,
one for each of the n players of a game, that has the property
that each player's choice is his best response to the choices of
the n–1 other players
NON-COOPERATIVE SOLUTION- Solutions in non-cooperative
game are similar to all other games in game theory, but
without the ones involved binding agreements enforced by
the external authority. The solutions are normally based on
the concept of Nash equilibrium, and these solutions are
reached by using methods listed in Solution concept.
DOMINANT STRATEGIES – A zero-sum game is a game where
any benefit gained by one is lost to another. In this game, the
sum of the payoffs is always zero where one player loses
whatever the other players awin. Dominant strategies give
the highest payoff. If one strategy yields a higher payoff than
a second e strategy, regardless of which strategies the other
players choose, the first strategy is said to dominate the
second. If one strategy dominates all other strategies for a
particular player in the game, it is said to be a dominant
strategy for that player and the second strategy is the
dominated strategy.
SEQUENTIAL MOVES- Sequential moves are steps taken
chronologically where an action is a consequence of a
previous move.
MUSASHI MIYAMOTO- The Way of Strategy of Musashi is
shown as five books called The Book of Five Rings or Go Rin
No Sho. Go Rin refer to the five parts of the human body,
namely, the head, left and right elbows, and left and right
knees.
MAXIMUM PAYOFF- With a maximin strategy, a firm
determines the worst outcome for each option, then chooses
the option that maximizes the payoff among the worst
outcomes. If Firm A chooses H, the worst payoff would occur
if Firm B chooses H: A's payoff would be 30.
GAME THEORY- Game theory even gained prominence with
the winning of John Nash as the 1994 Nobel Memorial Prize in
Economics.
VOID BOOK- The Void Book explains the true spirit of strategy
and is the penultimate book.
GROUND BOOK- The Ground Book is the roadmap to
strategy. It shows the way of strategy.
SUCCESSFUL STRATEGIST-
SUNTZU & The Art of War
-This book is the oldest military classic in Chinese literature
written around 400 to 320 BC.

ZERO-SUM GAME- A zero-sum game is a game where any
benefit gained by one is lost to another.
-In this game, the sum of the payoffs is always zero where
one player loses whatever the other players win. Dominant
strategies give the highest payoff.
-Its authorship has not been identified.
-The Art of War is included in the Seven Military Classics.
Since then, the book underwent translations into different
"original" versions.

-If one strategy yields a higher payoff than a second strategy,

regardless of which strategies the other players choose, the
first strategy is said to dominate the second.

-If one strategy dominates all other strategies for a particular

player in the game, it is said to be a dominant strategy for
that player and the second strategy is the dominated
strategy.

DOMINANT STRATEGY EQUILIBRIUM- The dominant strategy

in game theory refers to a situation where one player has a
superior tactic regardless of how the other players act.

TREE DIAGRAM- Sequential games are usually illustrated

using tree diagrams, referred to as the extensive form of a
game. They consist of nodes and branches.

-In sequential games, the order of action is given. The action

of one individual is dependent on the first move.