“Mintzberg 5‘P’s of Strategy”

Made by :Vivek SharmaBMI : 22 / 173MBA GEN ‘B’

STRATEGY

• A strategy is a long term plan of action designed to achieve a particular goal.

• The word derives from the Greek word stratēgos, which derives from two words: stratos (army) and ago (ancient Greek for leading). Stratēgos referred to a 'military commander' during the age of Athenia Democracy.

MINZTBERG SAY’S

1. Strategy is a plan, a "how," a means of getting from here to there.

2. Strategy is a pattern in actions over time; for example, a company that regularly markets very expensive products is using a "high end“ strategy.

3. Strategy is position; that is, it reflects decisions to offer particular products or services in particular markets.

4. Strategy is perspective, that is, vision and direction.

THE 5P’s

PLAN

PERSPECTIVE PLOY

POSITION PATTERN

PLAN

• It is a set of consciously intended course of action, a guideline (or set of guidelines) to deal with a situation.

• By this definition strategies have two essential characteristics:1)They are made in advance of the actions to which they apply2)They are developed consciously and purposefully.

PLOY

• It is a specific manoeuvre intended to outwit an opponent or competitor.

• The real strategy (as plan, that is, the real intention) is the threat, not the new practice area itself, and as such is a ploy.

• Threatened litigation often falls into this category.

PATTERN

• A pattern is a stream of actions.• Defining strategy is incomplete and needs an

out line that encompasses the resulting behavior.

• The outcome of strategy does not derive from the design, or plan, but from the action that is taken as a result.

• A pattern makes a strategy consistent in behavior, whether or not intended.

POSITION

• Position implies a specific means of locating a firm in its environment.

• In management terms: a "domain" consisting of a particular combination of services, clients and markets.

• Position is defined competitively.

PERSPECTIVE

• Perspective looks inward into the firm.• Strategy is a perspective shared by members

of an organisation, through their intentions and / or by their actions.

• In effect, when we talk of strategy in this context, we are entering the realm of the collective mind - individuals united by common thinking and / or behaviour.