Good Strategy vs Bad Strategy: the Difference and Why it Matters - Book Report/Review Example

The strategies that are prepared with the imaginative thought processes and anticipating the changes that could be implemented rather than hands-on experiments and testing to forecast results might prove to e a failed strategy. The difference between the good strategies and the bad strategies lies in the area of focus and the approach of the organization to finalize ways for meeting the challenges in the business operations. The good strategies on the other hand envisage a diverse way of meeting the challenges that are set apart from the industry trends.

The organization-specific strategies have been relatively successful as compared to the generalized approach or strategies to achieve organizational goals. Good strategies are those that are unique in nature and are adopted by the companies as exceptions to the industry-wide practices. Although several companies have been widely practicing similar strategies that have resulted in all-inclusive failures like the global financial crisis, the companies which have been able to stand out of the industry-wide strategic norms have been able to achieve comparatively more success with the help of their unique strategies.

The strategies framed by the companies could be linked to corporate profitability as the innovative designs and approaches adopted in their business have helped them to overcome the challenges and stand out of the population as the ultimate survivor towards sustainability of the business. Central pillars The major learning outcomes that could be achieved from the concepts of the good strategies and the bad strategies, the underlying differences, and their importance have been explained as follows.

The first learning outcome states that there is an inherent difference in understanding the language of strategy by the organizations. There are several organizations that link strategy with the ideal state of affairs in the business. The practical scenario is, however, different where the companies are required to consider the actual hurdles in the path of progress of the business. The consideration of the actual hurdles in the business operations would help the companies to identify the process gaps and then implement the necessary changes to fill those gaps.

A strategy that does not take the practical hurdles, anticipated changes in the business over a specific timeline could prove to be a failed strategy. The understanding of the factors that are responsible for framing good strategies and bad strategies is extremely important as it determines the success rate of business and corporate profitability (Rumelt 48). The second learning outcome states the pragmatic approach of the organization is setting its organizational vision, mission, objectives, and goals that trigger the strategic policies of the organization.

There have been several organizations that do not set realistic goals in their business due to the fact that their mission and vision statements are overstated. In order to undertake a good strategy, the organizations should be able to set realistic goals considering the challenges in the various business processes. The strategies should be specific to the organization and not follow the industry-wide practice in order to emerge successful in a time of crisis. The third learning outcome in the distinction between good strategies and bad strategies is that the strategy should be innovative in nature and should be designed with steps that are specifically required to fulfill the organizational objectives and goals. 

The strategies should form a cohesive approach involving the various sub-functions of the organization. The coordinated action of the various sub-functions of the organization should explore the various alternatives and the opportunities like leverage, dynamics of the human resources, supply chain management, focus on customer relationships, etc. Effective strategy making is possible through an integration of the argument and the action. The arguments on the foreseeable success due to some preplanned approach could be implemented with a series of planned actions. This is only possible with the help of framing good strategies by the organization. The logic behind strategy formation is to overcome the challenges and achieve the ultimate goal through a sequence of coordinated actions.

The book which explains the subtle differences and the characteristics of the good strategies and the bad strategies, their importance in the business and the industry will certainly impact future managers. The future managers would take into consideration the examples of the past and the explanation presented by the author on the characteristics of good strategies and the reasons why strategies tend to fail. This will lead the future managers to consider the industry-wide practices and then design unique strategies for the organization that are diverse from the strategies adopted in the industry. The uniqueness in the strategies adopted by the future managers would fulfill the first criteria of not aligning to similarity but resorting to the diversified approach of strategy formation. In order to build effective strategies in the future, the managers would consider the practical obstacles in the business processes and the potential of the organization to achieve realistic goals. Instead of moving towards an ideal and over-ambitious approach, the managers would tend to set realistic goals. The belief on the dynamics of the workforce, the leverage potential of the business, the supply chain management, the customer relationships would be taken into consideration for strategy preparation. By using the learning outcomes, the managers would tend to assess the obstacles that could be faced in the realization of the business goals over a specified timeline and then design a coordinated approach for attaining the goals and objectives of the organization.