Creativity and Strategy

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1. Rumelt means by design is that strategy is a design and design means fitting different pieces together as they work as a consistent whole. According to Rumelt, the strategy is a design because it is a skillful arrangement of resources and actions that gives a benefit in a challenging situation. According to Rumelt, there is a tradeoff, if there are limited resources, then the firm must have a "clever and tight" integration of actions and resources (1) On the other hand if the firm has higher quality resources, then there is a lower need for rigid integration of resources and actions. In the design of strategy by Rumelt, there are three elements namely, competitive challenge, actions, and strategic resources. This idea is important for understanding strategy because a successful leader relates insights about competitive challenges, understanding of strategic resources, and ideas about the action to apply the resources.

2. in the context of 20 Mile March, it is important to hold back or employ self-imposed constraints when the conditions are good because the objective of the strategy is to achieve 20 Mile March or consistent performance every day, irrespective of the external environment. Constraints also mean that firm continues its consistency during adverse conditions and enables the firm to perform consistently till it achieves its 20 Mile every day (2). According to the author, those who achieve 40 or 50 miles during a "good environment" also stay indoors for several weeks during snowstorms and adverse weather conditions. It is important to hold back when the conditions are favorable to achieve the same performance when the conditions are unfavorable. The company does not go into hibernation when the conditions are adverse. The author argues that several environmental conditions are out of control. These include competition, technological change, financial markets, and ...