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International Journal of Arts & Sciences,
CD-ROM. ISSN: 1944-6934 :: 09(01):349–356 (2016)
THE CONCEPT OF THE ENTERPRISE STRATEGY AIMED AT
USING OPPORTUNITIES
Piotr KuraĞ, Maágorzata KuraĞ and Marlena Grabowska
CzĊstochowa University of Technology, Poland
The paper will be devoted to the problem of the enterprise strategy adopting the Resource-Based View.
The Resource-Based View has completely dominated the strategic thinking of both theoreticians and
practitioners of management in the last two decades. However, theoretical, not to say abstract nature of
the RBV model has the major disadvantage, i.e. it is not subjected to operationalization. On the basis of
this view there come into being a lot of currents which differently explain the contents of the strategy.
One of them strongly emphasizes the relationship between the Resource-Based View and using
opportunities since the latter requires the possessing of the surplus of resources which allow for using
opportunities. The presentation of these relationships constitutes the main aim of the paper.
Keywords: Strategy, Strategic management, RBV, Opportunities.
Introduction
The basic assumption of the strategic management of the enterprise is the necessity to build, implement
and develop the specific strategy which, in the simplest terms, may be understood as the specific way of
conduct “in” and “with” the company. In the case of the enterprise, it can be assumed that the primary
objective of its existence is generating benefits for its owners. The benefits are profits generated by the
company and also an increase in the market value of the enterprise. In this context, the strategy of the
company amounts to such a way of conduct which enables the achievement of the assumed goal. It is
built while taking into account external conditions and the potential of the company. The environment
provides the enterprise with some specific opportunities for development. The capability of using
opportunities and avoiding threats, while simultaneously using strengths of the company, constitute the
conditions necessary to build the effective strategy of development, allowing the enterprise to occupy a
better competitive position on the market. The summary of the above considerations may be the definition
by K. Obáój, who claims that “The strategy amounts to what has fundamental impact on life or death,
success or failure of the company” [Obáój, 2007]. This approach has been formulated while referring to
the high level of generality. M.A. Hitt, R.D. Ireland and R.E. Hoskisson define the strategy in more detail,
claiming that “A strategy is an integrated and coordinated set of commitments and actions designed to
exploit core competencies and gain a competitive advantage. When choosing a strategy, firms make
choices among competing alternatives as the pathway for deciding how they will pursue strategic
competitiveness.” [Hitt, Ireland, Hoskisson, 2011]. The above definition has been adopted by the authors
in the present paper.
The aim of the paper is the attempt to depict the most important assumptions of the strategy oriented
towards using opportunities. To achieve this objective, there has been made the review of the subject
349
350 The Concept of the Enterprise Strategy Aimed at ...
literature available to the authors, its detailed analysis and, subsequently, the synthesis of the obtained
information.
The Strategic Context of the Functioning of the Enterprise
Contemporary companies function in a very complex and unpredictable environment, therefore success is
uncertain. In these conditions, possessing the strategy plays the most significant role in the functioning of
the organization.
Enterprises and particularly their managers now and then must face the fundamental strategic
questions (referring to the strategy), which relate to:
-the sense of the existence of the company at present and its vision of the functioning in the future,
-markets and products,
-the dominating model of operation [Obáój, 2007].
The responses to the above questions create specific platforms for the operation of the company.
They share some common characteristics which determine the essence of decision-making in the
enterprise.
Firstly, all strategic decisions concern long time horizon and they cannot be changed easily or
rapidly. This refers to both the mission and vision of the company and the selection of the markets
attended and products offered. The dominating model of operation should also remain stable in a longer
time perspective.
Secondly, the objective of decisions taken at all these platforms is to build competitive advantage. It is
more difficult to maintain competitive position than to achieve it. The change in external conditions requires
the adjustment of organizational solutions to these changes. Therefore, it is important to be able to fit and
adapt the vision of the company to future conditions of its functioning. Clear identification of markets and
the range of products makes the enterprise attractive, particularly if it offers desirable and unique products.
On the other hand, a good model of operation builds operational effectiveness of the company.
Moreover, the main strategic decisions should maximally use the available resources and
capabilities of the enterprise, and decisions themselves must be internally coherent, i.e. the vision must
be adjusted to markets and products and the model of operation should enable the development of the
vision and constant improvement of the company. Only good adjustment of these elements does enable
the creation of the effective strategy.
The above considerations aim at depicting problems and the area of decision-making characteristic
of the strategy. Nevertheless, possessing the best strategy does not determine the success of the enterprise.
The strategy, most of all, should be properly managed. The combination of the category of the strategy
with the essence of classical management results in a hybrid, which commonly occurs in the scientific
literature as strategic management. To accurately render the essence of the issue, there can be cited the
definition formulated by A. Strabryáa, who claims that strategic management “(…) can be understood as
the information and decision-making process (supported with functions of planning, organization,
motivation and control), which aims at the settlement of the key problems of the enterprise activity, its
survival and development, particularly taking into account the impact of the environment of crucial
factors of production potential.” [Stabryáa, 2000].
Along with the change in the conditions of the functioning of enterprises, e.g. increasing
globalization, which completely changed the image of the global economy and the dimension of
competitiveness, there changed the views of the strategy and the ways of dealing with the strategy itself.
On the one hand, it is the consequence of changes in the environment and, on the other, the cumulation of
knowledge and experience of practitioners and theoreticians of management. In turn, there occurred and
passed different concepts, approaches and recommendations. However, some of them have influenced
and been reflected in strategic thinking of managers so much that they are now the standards in
management of contemporary enterprises. While combining the achievements based on common
assumptions, nowadays, there can be discussed the streams, approaches or schools of strategic
Piotr Kura´
s et al. 351
management. The nature and aim of the present paper does not allow to describe all of them. Therefore,
the decision has been made on the presentation of only one of the classification types, which is, however,
rather commonly accepted in the whole world, the one by P. McKiernan [1997], who identifies four
generally recognized approaches in strategic management:
-planning approach,
-evolutionary approach,
-positioning approach,
-Resource-Based View.
The planning approach is mainly associated with the researchers such as: H.I. Ansoff [1965],
J. Argenti [1980], K. Andrews [1987]. It focuses on long-term planning to achieve “adjustment” between
the strategy of the specific organization and its environment. Strategic management is presented as the
process beginning with the stage of specifying goals, through the internal and external analysis, to
formulating and implementing the complete strategy. Each stage of this process is structured and planned.
The main advantage of this approach is enclosing compiled information in the form of structures, defining
and focusing on business objectives, establishing control tools and possibilities of measurement of results.
The basic constraints of this approach include the risk of failing to meet the plan as a result of operating in
increasingly less predictable environment, which may result in wrong decisions.
The evolutionary approach is mainly associated with the works of subsequently listed researchers in the
following configurations: H. Mintzberg and J.A. Waters [1985], H. Mintzberg, J.B. Quinn and S. Ghoshal
[1995]. In their works, the researchers suggest that, in spite of the whole complexity and changeability of the
environment, enterprises “somehow get by”. The studies by J.B. Quinn indicated, though, that enterprises
rather do not make important long-term decisions in an accidental way. They are more the result of the
adaptation of the existing strategy to changing conditions of the environment. In this sense, it can be stated
that the strategy evolves in a rational way in response to changes in the environment. Therefore, the strategy
is the combination of purposeful plans with current adjustments in time.
The positioning approach is most of all associated with the name of M.E. Porter [1980, 1985]. This
approach became popular and basically dominated the strategic thinking of practitioners in the eighties.
The advantage of this approach is the suggestion of specific tools for strategists in the organization.
These, most of all, include the concept of the overall strategy, the model of five forces and the model of
the value chain. Additionally, Porter suggested the methodology of building the strategy which firstly
assumed the necessity to conduct the analysis of the environment of the enterprise (using the model of
five forces) to make the assessment of the potential of the specific sector. The internal analysis (using the
value chain) aims at the isolation of activities aimed at an increase in value added of the company. The
final stage is the selection of the overall strategy. These actions are to lead to the achievement of
competitive advantage of the enterprise on the market. The criticism of this approach amounts to four
objections, i.e. it is a static approach, the level of profitability of the sector does not determine the
profitability of the specific enterprise [Rumelt, 1991] it concentrates on competition rather than
possibilities of cooperation and greater emphasis on the environment than competencies of the company.
Resource-Based View – RBV combines a lot ideas from previous approaches. In this case, it is
acknowledged that building the strategy is a formal process. However, compared to the positioning
approach, there is a change from the external-internal focus to internal-external one. While not
questioning the necessity to conduct external analyses, the source of competitive advantage is placed
inside the company and particularly in the resources available for it and core competences and
distinguishing capabilities. However, the possession of such resources itself is not sufficient. It is
necessary to use them effectively and combine them in appropriate configurations skillfully [Tomski,
2013]. From the point of view of the strategy, this approach assumes that the (possessed or possible to
achieve) resources controlled by the company and knowledge along with experience and capabilities
constitute more important basis for decision-making than the environment of the enterprise.
Two schools, i.e. the school of simple rules and the school of real options, have evolved from the
Resource-Based View as the one not fully capable of explaining many cases not fully subjected to its
352 The Concept of the Enterprise Strategy Aimed at ...
assumptions. The school of real options assumes that, in the conditions of great uncertainty of the
environment, it is irrational to develop large investment projects. It is better to divide them into smaller
parts to provide the option of subsequent movements, which can be compared to gradual climbing stairs
while giving oneself the right for giving up further climbing [Obáój, 1998]. The school of simple rules,
being the inspiration for the development of the present paper, is characterized in the subsequent part of
the study in more detail.
The Strategy as the System of Simple Rules for Operation Directed Towards Using
Opportunities
The starting point of the emergence of the school of simple rules is the criticism of the positioning
approach and the Resource-Based View. Paradoxically, at times when enterprises operated, following
relatively simple markets, their strategies were characterized by relatively high level of complexity.
Nowadays, there prevails the view that, at the time of the unstable environment of the enterprise,
strategies must be both complex and simple, i.e. based on simple rules that create a coherent whole
[Nogalski, Rybicki and Szpitter, 2004]. According to K.M. Eisenhardt and D.N. Sull, the managers of the
strategy of the enterprise, instead of adopting the position or using competences, should select a few key
strategic processes and concentrate their efforts on them. These processes may concern: innovation,
product, partnership, entering new markets etc. On the other hand, simple rules should constitute the
guidance system allowing managers to capture opportunities [Krupski, 2004].
Opportunities appear and disappear faster than the administration managing the enterprise,
constrained by the necessity of the implementation of the adopted strategy, can respond to them.
Opportunities disappear more rapidly than it is possible to create the resources for their efficient use.
Therefore, the operation based on the previously adopted, deeply structured strategy becomes ineffective.
Therefore, it becomes necessary to change the logic of conduct. It is assumed that the success of the
company depends on its capabilities to respond quickly to emerging opportunities, faster than competitors
[Krupski, 2004].
The configuration of goals and opportunities and degrees of their use in generating the strategy is
presented in Table 1.
Table 1. Goals and opportunities in the strategy of the enterprise
ORIENTATION TOWARDS STRATEGIC GOALS
Strong Poor
I
·Deep structuring of strategic goals
·Implication of human resources,
physical, financial, information
and relational ones
·Strategic controlling based on
goals and opportunities
·Essential correction of the
strategy with reference to
opportunities
II
·No strategic goals
·Creating resources, mainly
information and relational ones
·Recognizing and using
opportunities
·Strategic controlling based on
opportunities
III
·Deep structuring of strategic goals
·Implication of human, physical
and financial resources
·Strategic controlling based on the
achievement of goals for the
improvement of the adopted
strategy
IV
·No strategic goals
·No capabilities for recognizing
and using opportunities
·Accidental activities and
resources
Source: [Krupski, 2003].
ORIENTATION TOWARDS OPPORTUNITIES
Poor Strong
Piotr Kura´
s et al. 353
The above approach allows for the identification of four possible theoretical approaches to the
formulation of the strategy with the assumption of different levels of orientation towards goals and
opportunities. The subject of our interest is the field II, amounting to strong orientation towards
opportunities with simultaneous poor orientation towards goals. In this case, the contents of the strategy
includes exclusively the redundancy of resources, mainly information and relational ones and using
opportunities. On the basis of these observations, R. Krupski formulates the definition of the strategy in
“the language of simple rules” concluding that “the strategy amounts to defined (ex ante) ideas, most of
all, referring to the innovation of values, defined opportunities which must be used and defined
redundancies of resources and competences which must be created due to both opportunities and threats”
[Krupski, 2004]. The category of innovation of value, listed in the definition, is associated with creating
new demand which could not be satisfied so far due to technological reasons.
Simple rules for operation can be formulated on the basis of various problem areas while
simultaneously creating different types of rules. They are presented in Table 2.
Table 2. The typology of simple rules for operation
Types of rules Essence Example
Principles of the
mode, processes
and procedures
The rules referring to the mode of
conduct, answering the question:
what makes a specific process
unique?
Alpinus S.A. Strong leadership. General planning
and programmatic approach transferred from
experiences collected during climbing expeditions
Principles of the
boundaries of
operating
The rules allowing to assess which
of the opportunities are within our
scope and which are not and why?
Cisco repurchases only the companies that possess
more than 75 employees, and 75% of the staff
must have education in engineering
Principles of
hierarchy
The rules allowing to specify the
hierarchy of opportunities or threats
In Intel, the most important criterion of allocation
and development of production capacity is gross
margin – generated on the product
Time principles
The rules allowing to synchronize
activities referring to emerging
opportunities in time
Hewlett-Packard – Break Even Time is the basis
for launching the product onto the market
Principles of
withdrawal
The rules allowing managers to
withdraw from “yesterday’s “
changes
Oticon – if the leader of the project withdraws
from it, the project is closed
Source: [Nogalski, Rybicki and Szpitter, 2004].
In Table 2, there are presented five simple rules formulated by K.M. Eisenhardt and D.N. Sull,
illustrated by specific examples. The analysis of the table indicates that individual enterprises adopt the
specific simple rule which is clear for everybody.
In the subject literature, there are also theoretical approaches associated with the problem of
opportunities. Most of all, they concern such issues as: definitions of opportunities, types of opportunities,
life cycles of opportunities and the ways of considering opportunities in strategic management.
In Poland, an interesting model was suggested by R. Krupski [2014]. There is the assumption that
using opportunities does not have to be emergent in nature and, on the contrary, it may be systematic in
nature. The planned use of opportunities is possible only as a result of planning the redundancy of
resources (beyond the needs of current exploitation). The author himself called this model “the Resource-
Based View model towards the planned use of opportunities”. The elements of the model at the strategic
level are redundancies of resources and the filter of opportunities which can be e.g. the mission of the
company or specified simple rules. They are subjected to strategic planning. Other operations result from
subsequent stages of the development of these projects, i.e. defining the project, organizing the project
354 The Concept of the Enterprise Strategy Aimed at ...
team, planning the course of the project, planning resources, organizing the performance of the project,
coordinating development of the project and its closure [Trocki, Grucza, Ogonek, 2003].
R. Krupski conducted the research including Polish enterprises and, as result, he identified ten types
of opportunities, which were used by them in their own development. The results of this research are
presented in Table 3.
Table 3. Types of opportunities and the number of the identified cases
No Types of opportunities Number of identified
cases
1 Extremely cheap, unplanned purchase of means of production, property etc. 43
2 Unexpected offer of cooperation from a well-known large company 13
3 The use of various aid EU funds 8
4 New favorable system solutions (e.g. referring to shelter workshops) 7
5 The repurchase of the failing local competitor 5
6 The withdrawal from the market of the local competitor and takeover of their
customers
4
7 Acquiring a new investor, the merger of companies 4
8 Breakdown recovery 3
9 Unexpected successful tender 2
10 Unexpected increase in the demand from the macro-environment (e.g. foreign
markets)
2
Total 91
Source: [Krupski, 2011].
The analysis of the data included in Table 3 indicates that the most frequently used opportunity,
which becomes the reason for development of the enterprise, is the extremely cheap unplanned purchase
of tangible assets. It amounts to almost half of the cases.
An essential factor is also the unexpected offer of cooperation from a large company.
Conclusions
Since its inception, strategic management has been making an attempt to response to the question how the
enterprise should behave to achieve long-term success on the market. Over years there have been a lot of
attempts to answer this question. Some of them, in their time, gained rather widespread acceptance, of
both theoreticians and practitioners of management, for example, it is difficult to question the need for
strategic planning. However, along with increasing unpredictability of individual national economies and
the whole global economy, the usefulness of strategic plans has apparently decreased. Another example is
the positioning approach which dominated the thinking of strategists for many years. This approach
gained recognition of theoreticians and, most of all, practitioners since it provided specific strategic tools.
Nevertheless, it turned out that this approach does not explain many cases of development of enterprises.
There has emerged Resource-Based View, which is the most popular nowadays. However, it also does not
respond to all dilemmas of management.
An interesting proposition is the school of simple rules, which assumes that, in the conditions of
great complexity of the environment and its unpredictability, the activity of the company cannot be based
on highly formalized and very elaborate detailed strategies. The strategy must be simple and clear for all
the stakeholders of the enterprise. The company should adopt a few simple rules in its activity and be
driven by them in the course of its operations. Such a principle can be the directing of the company
Piotr Kura´
s et al. 355
towards using opportunities which are characterized by the fact that they suddenly occur on the market
and equally rapidly disappear. Therefore, the art consists in the identification of opportunities and
responding to them before competitors do.
The redundancy of resources is necessary for rapid and effective use of opportunities. In this sense,
this concept should not be treated as individual theoretical being but more as creative and interesting
development of the Resource-Based View. For this reason, according to the authors of the present paper,
there is a need for further development of the presented issue.
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