Origin of firm strategy from the military

Since its emergence in the early 19th century, the term “strategy” has been widely and commonly used in management science. Although the concept of firm strategy has been strongly developed in Europe, encompassing both military and management, a historical perspective reveals that the notion of “strategy” originated in the military context. It was first

History of firm strategy and strategic management

From military studies, the concept of firm strategy was developed and applied in modern management science since the 19th century. Although originating from military strategy, firm strategy exhibits significant differences. In nature, military strategy is to defeat the enemy in a win-lose battle. Meanwhile, firm strategy can pursue different goals, albeit always linked to

Concept of Firm: Definition, Nature and Classification

Regardless of the different approaches, in general, firm is a “strategic” organization that has mission of producing, trading and distributing products, services to customers and/or consumers. To perform these, firm adopt strategy by strategically self-organizing, mobilizing and impacting on its resources (including: materials, finance, human resources, equipment and machinery, information) in a certain scope, by complying with the legislations, and in ensuring a certain profitability

Definition, Nature and Sources of Firm Profit

Profit, in economics, is the portion of assets that investors gain through investment after deducting related costs, including opportunity costs. It is the difference between total revenue gained and total costs incurred in the transaction. In classical and Marxian economics, profit is a return to the owner of (i) production materials or natural resources used in productive activity involving labor, or (ii) income from bonds, stocks, and investments in the financial

Firm Strategy: Definition, Nature and Characteristics

Porter (1985) defined strategy, in terms of competitive strategy, “… is the search for a favorable competitive position in an industry, the fundamental arena in which competition occurs. Competitive strategy aims to establish a profitable and sustainable position against the forces that determine industry competition”.

Strategic decision versus Tactical decision in firm

Strategic management is associated with making strategic decisions that often concern the long-term future of the firm, its changing business environment, and all the resources and people related to the firm. Therefore, strategic decisions are distinguished from others by the specific features versus Tactical decision in

The Best Business Strategy Examples Ever Seen

Most entrepreneurs dream of an innovative product or service that surprises their rivals and takes new markets by storm. What they tend to forget is that there needs to be an excellent business strategy accompanying the product. From Tesla, Airbnb, and Toyota to Hubspot, Apple, and Paypal – let’s dive into their business strategies