ABSTRACT
This chapter has outlined the traditional approaches to developing strategy. The following key points were identified:
Strategy needs to be understood in relation to the environment in which an organisation operates.
Once the organisations strategy with relation to its industry is assessed, it is necessary to examine the internal workings of the organisation to determine the extent to which its own processes and resources are contributing to strategic objectives.
Some approaches to strategy can be applicable to both the public sector and private sector. However, these sectors also have fundamental differences in strategic purpose. Generally speaking, the private sector is interested in concepts such as profitability or market share, whereas the public sector is more fundamentally concerned with value creation and value maximization.
There may be some linkages that can be made between models that were originally formulated for the private sector, such as the value chain, the rise of new public management, and the public sector drive for value creation.
However, although some commonly taught models of strategic analysis may be equally applicable regardless of sector, in many cases it is necessary to view public sector strategy as something different and distinct from the private sector, and therefore, different concepts, models, and theories should be used in this context.
