ONEof Mintzberg's five P's of strategy"is PLAN

• 1. Clearly explain why you selected that particular P -PLAN concept (that is, "Why do you believe it is important to the overall strategic management process?")
• 2. Discuss a focal company in an industry of your choice as the background information to explain how that company uses the above-mentioned P - Plan.
• 3. Explain from the viewpoint of the strategic leaders of that company whether that particular concept requires more of the perspective of an art or the perspective of a science.

Use the appropriate Leo course materials, scholarly reference sources and corresponding in-text citations in all your postings.

NOTES: Defining Strategy: The Five Ps Defining strategy is not simple. Strategy is a complex concept that involves many different processes and activities within an organization. To capture this complexity, Professor Henry Mintzberg of McGill University in Montreal, Canada, articulated what he labeled as "the 5 Ps of strategy." According to Mintzberg, understanding how strategy can be viewed as a plan, as a ploy, as a position, as a pattern, and Saylor URL: http://www.saylor.org/books Saylor.org 7 as a perspective is important. Each of these five ways of thinking about strategy is necessary for understanding what strategy is, but none of them alone is sufficient to master the concept. [1] Figure 1.1 Defining Strategy: The Five Ps Images courtesy of Thinkstock (first);Wikipedia (second); OldNavy (third); James Duncan Davidson from Portland, USA (fourth)

Strategy as a Plan Saylor URL: http://www.saylor.org/books Saylor.org 8 Strategic plans are the essence of strategy, according to classic view of strategy. A strategic plan is a carefully crafted set of steps that a firm intends to follow to be successful. Virtually every organization creates a strategic plan to guide its future. In 1996, Apple's performance was not strong, and Gilbert F. Amelio was appointed as chief executive officer in the hope of reversing the company's fortunes. In a speech focused on strategy, Amelio described a plan that centered on leveraging the Internet (which at the time was in its infancy) and developing multimedia products and services. Apple's subsequent success selling over the Internet via iTunes and with the iPad can be traced back to the plan articulated in 1996. [2] A business model should be a central element of a firm's strategic plan. Simply stated, a business model describes the process through which a firm hopes to earn profits. It probably won't surprise you to learn that developing a viable business model requires that a firm sell goods or services for more than it costs the firm to create then distribute those goods. A more subtle but equally important aspect of a business model is providing customers with a good or service more cheaply than they can create it themselves. Consider, for example, large chains of pizza restaurants such as Papa John's and Domino's. Franchises such as Pizza Hut provide an example of a popular business model that has been successful worldwide. Saylor URL: http://www.saylor.org/books Saylor.org 9 Image courtesy of Derek Jensen, http://wikimediafoundation.org/wiki/File:Bremen-indiana-pizza-hut.jpg. Because these firms buy their ingredients in massive quantities, they pay far less for these items than any family could (an advantage called economies of scale). Meanwhile, Papa John's and Domino's have developed specialized kitchen equipment that allows them to produce better-tasting pizza than can be created using the basic ovens that most families rely on for cooking. Pizza restaurants thus can make better-tasting pizzas for far less cost than a family can make itself. This business model provides healthy margins and has enabled Papa John's and Domino's to become massive firms. Strategic plans are important to individuals too. Indeed, a well-known proverb states that "he who fails to plan, plans to fail." In other words, being successful requires a person to lay out a path for the future and then follow that path. If you are reading this, earning a college degree is probably a key step in your strategic plan for your career. Don't be concerned if your plan is not fully developed, however. Life is full of unexpected twists and turns, so maintaining flexibility is wise for individuals planning their career strategies as well as for firms. For firms, these unexpected twists and turns place limits on the value of strategic planning. Former heavyweight boxing champion Mike Tyson captured the limitations of strategic plans when he noted, "Everyone has a plan until I punch them in the face." From that point forward, strategy is less about a plan and more about adjusting to a shifting situation. For firms, changes in the behavior of competitors, customers, suppliers, regulators, and other external groups can all be sources of a metaphorical punch in the face. As events unfold around a firm, its strategic plan may reflect a competitive reality that no longer exists. Because the landscape of business changes rapidly, other ways of thinking about strategy are needed.