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 ³Strategy is the creation of a unique and
valuable position, involving a different set of
activities.´

³Strategy is a framework which guides those

choices that determine the nature and
direction of an organization.´



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 ³In terms of the three key players (competitors,
customers, company) strategy is defined as the
way in which a corporation endeavors to
differentiate itself positively from its competitors,
using its relative corporate strengths to better
satisfy customer needs.´
-Kenichi Ohmae
³The Mind of the Strategist´



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ßIt is wrriten by Kenichi Ohmae

ßFirst published in japan,1975

ßAll about the art of japanese business

ßThe author is the famous Mckinsey consultant

ßBook is full of charts and jargons.

 =hat you will learn from this book?

1. How japanese people think about strategy

2. How you should conceptualize and execute your strategy

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߄ecret of japanese business

ßThey don¶t have army of strategic planners

ßThey have some remarkable insights

ßThree kinds of thinking process

Mechanical system thinking (rearrangement of elements)
Intuition (local optimization)
„trategic thinking (transformation or changed
configuration)
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߄trategy is always and everywhere the product of an atitude and

the way of thinking

ßIt begins with analysis

߄trategy is intuitive , but it is also analytical ; it is analytical, but

also intuitive.
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ßIdentify the issue that matters the most-critical issue

ßTo do this frame the questions properly

ßEach question would elicit a different response

ßA disciplined method can help anyone arrive at a workable

definition of the critical issue
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ß Xiagram the issue or questions
(eg., Can we lower the cost on this product?).

ß Identify the issue components

(eg., Fixed costs, variable costs, design specs?).

ß Question each component and look at the advantage and

disadvantage of changing that component.
(eg., Can we change the designs specs to use cheaper material?)

ß Offer a specific plan of action for each issue component.

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1. Re-allocate resources.

2. Focus on one¶s relative strength.

3. Redefine the key issue of the business by a bold stroke

4. Be free.
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sing above methodology , you will avoid some of the great

errors of strategy including:

ßTunnel vision

ßAll or nothing
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ßThe purpose of business strategy is to cause events to favor your

strengths.
ßIdentify your strengths and build on them.
ßEvery industry has a key success factor-know yours.
ßPenetrate appearances.
ßAddress the problem, not the symptoms.
ßKnow what separates winners from losers in your industry and
your market.
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ßAnalyze potential improvements in terms of cost, benefit and
strategic advantage.

ßKeep track of customer and market trends-even though

customers may not know what they want.

ßKnow the difference between a ³business´ and a ³product.´

ßThink like an entrepreneur, but think.