The “What is Strategy” video gives us background information as to the big picture of an organization and what its structure is. First, Porter explains that strategy is not the same as vision/values or operational effectiveness, but rather defines the company’s distinctive approach to competing and the competitive advantages on which it is based. Instead, we can start by understanding the foundation which is to understand the industry (structure) and positioning within the industry. The 5 forces that are drivers in an industry are 2) Threat of substitute products or services 2) Bargaining power of suppliers 3) Threat of new entrants 4) Bargaining power of buyers 5) Rivalry among existing competitors. A company can use this understanding to create a more competitive place in the value chain, the set of activities involved in delivering value to customers. An example of a strategy is “The Good Jobs Strategy” as stated in Ton’s video. Her main idea is that bad jobs cost companies more than they realize with heavy inaccuracies and that it is a vicious cycle unless we fix the root cause. Good jobs compared to bad jobs would not include 1) Poverty-level wages 2) Chaotic schedule 3) No training 4) Poorly designed work 5) No meaning or purpose. A great example of this is the podcast on the company Managed By Q. Typically, almost every technology startup emulates the model of holding down the cost of labor. Instead, Teran treats its employees well, therefore turnover is far lower, engagement and job performance is far higher than that of most of its competitors. And that, in turn, would lead to high customer satisfaction and retention. We are able to look at true beliefs we can retain at the lowest level — students. She speaks on the topics of career management, identity, leadership, and values. Students are able to apply her lessons to organizational behavior, leadership, and ethics in their own experiences and careers.
I think the most important point that relates to all three sources is that a company’s strategy is an influential tool for running a business. The reason why this is so important is that it is a systemic change rather than a surface-level. Furthermore, Philpot’s podcase will ultimately influence the structure of businesses in the long run because we would be able to teach important values at a younger age when they can put them into effect.
