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Key concepts

Strategy context means the circumstances surrounding and influencing the way that a strategy develops and operates.

Survival-based theories of strategy regard the survival of the fittest in the competitive market place as being the prime determinant of corporate strategy.

Uncertainty-based theories of strategy regard a prescriptive, defined strategy as being impossible to develop because the strategic process is unpredictable, unstable and liable to chaotic outcomes.

The network-based strategic route forward explores the links and degree of co-operation present in related organisations and industries and places a value upon that degree of co-operation.

Network externalities refer to the development of an overall standard for a network that allows those belonging to the network to benefit increasingly as others join the same network.

Network co-operation refers to the value-adding relationships that organisations develop inside their own organisation and outside it with other organisations.

The game-theory route forward refers to structured methods of bargaining with and between customers, suppliers and competitors of the organisation, such structuring involving the quantification of possible outcomes at each stage of the strategy decision-making process.

The learning-based strategic route forward emphasises learning and crafting as aspects of the development of successful corporate strategy. It places particular importance on trial and feedback mechanisms.

Double loop learning consists of a first loop of learning that checks performance against expected norms and adjusts where necessary coupled with a second loop that re-appraises whether the expected norms were appropriate in the first place.

Dominant logic is the way in which managers conceptualise the business and make critical resource allocation decisions.

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