Principles of Strategy

Duro and Standstrom have mentioned about 10 principles of strategy, which are drawn from the military rule or warfare, but are equally applicable to business.

These are given in the following:

  1. Set a goal and stick to it.
  2. Maintain good morale (good leadership is aprecondition for this).
  3. Accumulate forces.
  4. Act aggressively.
  5. Aim for surprise.
  6. Make sure your own forces are secure.
  7. Use your forces economically.
  8. Coordination (either through chain of command or through cooperation).
  9. Try to be adaptable.
  10. Simplicity (clear and simple plans and concise orders/instructions)

OveLiljedahl has discussed the relevance and applications of the aforementioned principles to business strategy and has given examples from the Scandinavian Airline Systems (SAS) as pronounced by their MD.

1. Set a goal and stick to it

SAS: We will be the best airline in Europe.

2. Maintain good morale

SAS: The personality of the leader; motivation courses

3. Accumulate forces

SAS: Concentration on profitable European routes

4. Act aggressively

SAS: ‘Investing’ its way out of the crisis in a stagnating market

5. Aim for surprise

SAS: While competitors pay 100 million kroners for a new DC9a, SAS repaints and changes interiors of all its 80 planes for 50 million kroners

6. Make sure your own forces are secure

SAS: Delegate responsibility for results; each unit ensures its own security

7. Use your forces economically

SAS: Personnel and fleet tailored to suit the need for resources

8. Coordination

SAS: The aim is known and understood by all employees

9. Try to be adaptable

SAS: Adaptation to new threats from outside; adapting to deteriorating sales opportunities in the airline industry advising aircraft manufacturers on how to build modern fleet aircraft.

10. Simplicity

SAS: Single strategy; instead of getting 100 per cent better on one point, get 1 per cent better on 100 points.

Sarav Author

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