“The essence of formulating strategy is relating a company to its environment.”

—  Michael E. Porter

Source: Competitive strategy, 1980, p. 3

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Michael E. Porter 13
American engineer and economist 1947

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“The essence of strategy is choosing what not to do.”

Michael E. Porter (1947) American engineer and economist

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“There are times when a company’s know-how, product range, and labor relations are in harmony with the world around it. The business situations are familiar, the company is well organized, and employees are trained and prepared. During those times, managers do not need to develop and implement new ideas. Their job is to allocate resources to promote growth and development, channeling capital and people to the parts of the organization best positioned to benefit from the current state of affairs. Those parts of the organization then become larger, better established, and more powerful.
But just when the company has organized itself, outside circumstances may change. New technologies come on the scene, markets shift, interest rates fluctuate, consumers’ tastes change, and the company must enter a new phase of life. In order to stay in sync with the outside world, it must be able to alter its marketing strategy, its product range, its organizational form, and where and how it does its manufacturing. And once a company has adapted to a new environment, it is no longer the organization it used to be; it has evolved. That is the essence of learning.”

Arie de Geus (1930) Dutch businessman

Cited in: Richard C. Huseman, Jon P. Goodman (1998), Leading with Knowledge: The Nature of Competition in the 21st Century. SAGE Publications, p. 72.
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“Science is the description of phenomena and the formulation of their relations.”

Boris Sidis (1867–1923) American psychiatrist

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“Companies earn their profits by exploiting their environment. Mining and oil companies exploit the physical environment; social media companies exploit the social environment. This is particularly nefarious because social media companies influence how people think and behave without them even being aware of it.”

George Soros (1930) Hungarian-American business magnate, investor, and philanthropist

Remarks delivered at the World Economic Forum https://www.georgesoros.com/2018/01/25/remarks-delivered-at-the-world-economic-forum/ (25 January 2018)

“Ludwig von Bertalanffy's formulation enables exchange processes between the organism, or organisation, and the elements in its environment to be dealt with in a new perspective, it does not deal at all with those processes in the environment itself which are among the determining conditions of the exchanges. To analyse these an additional concept is needed - the causal texture of the environment.”

Eric Trist (1909–1993) British scientist

Source: The Causal Texture of Organizational Environments (1963), p. 20, cited in: Academy of International Business, University of Hawaii at Manoa. College of Business Administration (1982) Proceedings of the Academy of International Business: Asia-Pacific Dimensions of International Business, December 18-20, 1982, Honolulu, Hawaii. p. 163

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“Classical political economy nearly touches the true relation of things, without, however, consciously formulating it. This it cannot so long as it sticks in its bourgeois skin.”

Karl Marx book Das Kapital

Vol. I, Ch. 19, pg. 594.
Das Kapital (Buch I) (1867)

“In a nutshell, Blue Ocean Strategy proposes that strategy can shape industry structure, whereas competitive strategy sees strategy as choosing the right position under given structural constraints. The field of strategy has been long dominated by a structuralist view; in other words, the idea that the industry’s structure is fixed. Strategy, as commonly practiced, tees off with industry analysis and is conventionally about matching a company’s strengths and weaknesses to the opportunities and threats present in the existing industry. Here, strategy becomes a zero-sum game where one company’s gain is another company’s loss, as firms are bound by existing market space.”

W. Chan Kim (1951) South Korean economist

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“The essence of the phenomenon of gambling is decision making. The act of making a decision consists of selecting one course of action, or strategy, from among the set of admissible strategies.”

Richard Arnold Epstein (1927) American physicist

Source: The Theory of Gambling and Statistical Logic (Revised Edition) 1977, Chapter Three, Fundamental Principles Of A Theory Of Gambling, p. 43

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“The essence of society is difference, related difference.”

Mary Parker Follett The New State

Source: The New State, 1918, p. 33
Context: We see now that the process of the many becoming one is not a metaphysical or mystical idea; psychological analysis shows us how we can at the same moment be the self and the other, it shows how we can be forever apart and forever united. It is by the group process that the transfiguration of the external into the spiritual takes place, that is, that what seems a series becomes a whole. The essence of society is difference, related difference. "Give me your difference" is the cry of society to-day to every man.

“The company is a living system. Employees are its lifeblood. Strategy is the brain and measurement and communication the central nervous system. Culture is the DNA. Leadership and continued entrepreneurial energy are its soul and spirit. Governance and accountability are its rhythms and disciplines, like exercise, a means of keeping this living organism fit and lean. Leadership gives a company energy. Governance assures its honesty.”

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