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Chapter 3.       Strategy1 
By Marylynn Placet and Kristi M. Branch 
The word “strategy” has been in use since Sun Tzu wrote the Art of War in the fourth century 
B.C. (Sun Tzu 1971).       Sun Tzu wrote, of course, about military strategy.  The literature on 
corporate strategy, which emerged in the 1950s and 1960s (Chandler 1962; Ansoff 1965; 
Learned et al. 1965) is vast and continues to grow at an astonishing rate.            Strategic management – 
the way in which a firm identifies its strategic direction and aligns its operational processes to its 
strategy – has become an academic discipline in its own right, like marketing and finance 
(Mintzberg et al. 1998:18; Rumelt et al. 1994:15).  In essence, strategy has to do with 
understanding where an organization will go in the future and how it will get there.               Most 
academicians and corporate managers believe strategy affects the overall welfare of the 
corporation, and strategy making is an important activity, though a few believe firms are better 
off without a strategy (see Inkpen and Choudhury 1995).             Many who believe strategy is 
important, however, find fault with the ability of formalized strategic planning processes to deal 
adequately with the pace of change facing organizations in today’s environment. 
The disruptive changes created by revolutionary technologies (including communication and 
information processing technologies), globalization, and new business methods can turn an 
organization’s current advantages into barriers for future success and have led to new thinking 
about the focus and goal of strategy (Christensen and Overdorf 2000; Miller and Morris 1999; 
D’Aveni 1994; Brown and Eisenhardt 1998; Tushman and Anderson 1997).  D’Aveni (1994) and 
Dudik (2000) argue that under the dynamic conditions affecting many organizations today, which 
D’Aveni calls hypercompetition, strategy that seeks to sustain organizational advantage needs to 
be replaced with strategy tha
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