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Comparing Business and Military Strategies

The concept of strategic management has its roots in military strategy. Terms such as "objectives," "mission," "strengths," and "weaknesses" were initially developed to address challenges on the battlefield. The word "strategy" itself originates from the Greek word strategos, which refers to a military general and combines stratos (the army) and ago (to lead).

Similarities between Business and Military Strategies

There are several parallels between business and military strategies:

  1. Competitive Advantage:

  2. A key objective in both business and military strategies is to gain a competitive advantage over adversaries or competitors.

  3. Exploiting Weaknesses:

  4. Both business and military organizations aim to leverage their strengths to exploit the weaknesses of their competitors or enemies.

  5. Continuous Attention to Changing Conditions:

  6. Success in both domains is not the result of accidental strategies. Instead, it comes from continuous monitoring of changing external and internal conditions and the formulation and implementation of strategies accordingly.

  7. Element of Surprise:

  8. The element of surprise is a powerful tool in both business and military strategies, providing a significant competitive edge when executed effectively.

Differences between Business and Military Strategies

Despite their similarities, there is a fundamental difference between business and military strategies:

  1. Assumption of Competition vs. Conflict:
  2. Business strategy is formulated based on the assumption of competition, where multiple entities compete in a market. In contrast, military strategy is based on the assumption of conflict, where entities are engaged in direct confrontation.

Assurance Learning Exercise 1B: Strategic Planning for My University

Purpose

This exercise aims to demonstrate the process of identifying critical external and internal factors that serve as the underlying basis for strategies formulated and implemented by organizations, such as a university.

External Factors

External influences on a college or university include trends in various areas, such as:

  • Economic: Budget cuts, funding changes, and economic downturns.
  • Social and Cultural: Shifts in societal values, cultural trends, and demographics.
  • Technological: Advancements in educational technology, the rise of online courses.
  • Political and Legal: Changes in government policies, legal regulations affecting education.
  • Environmental: Sustainability initiatives, the impact of climate change on campus operations.
  • Demographic: Population shifts, changes in student demographics.
  • Competitive: Increased competition from other institutions, including online platforms.

Examples of external factors: - Declining numbers of high school graduates. - Increased competition among colleges and universities. - Rising numbers of adults returning to education. - Increased foreign student enrollment. - Growing popularity of online courses.

Internal Factors

Internal factors within a college or university include:

  • Faculty and Staff: Quality and satisfaction of teaching and non-teaching staff.
  • Students: Student demographics, engagement, and performance.
  • Alumni: Alumni support and involvement in university activities.
  • Academic Programs: Strength and diversity of academic offerings.
  • Athletics: Success and reputation of athletic programs.
  • Infrastructure: Physical facilities, maintenance, and student housing.
  • Administration: Efficiency and effectiveness of university administration.
  • Financial Resources: Fundraising efforts, endowments, and budget management.
  • Campus Life: Student clubs, fraternities, sororities, and other extracurricular activities.

Instructions

  1. Step 1: On a separate sheet of paper, create four headings: External Opportunities, External Threats, Internal Strengths, and Internal Weaknesses.
  2. Step 2: Under each of the four headings, list five factors related to your college or university.
  3. Step 3: Discuss the factors as a class and write them on the board.
  4. Step 4: Reflect on what new insights you gained about your university from the discussion. Consider how this type of analysis could inform strategic planning for the institution.

This exercise provides a structured approach to analyzing the strategic position of a university by considering both external and internal factors. It helps in understanding how these factors influence strategic planning and decision-making within the educational sector.

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