Abstract: Based on a standard model of strategic management,this paper interprets the strategy process as a process of the evolution of strategy states,where any change is caused by strategic decisions and exogenous stochastic disturbances,and employs the dynamic programming technique to model strategic decisionmaking rationality.The results show that the employment of dynamic programming can not only determine the value (competitive advantage) of a given strategy state,the corresponding sequence of optimal strategy-formulation,and the strategy-implementation decisions,but also identify the effects of the information revelation in a strategy process on a firm's (or an organization's) value (competitive advantage).These results,to some dgree,logically consistently support the design and planning schools in strategic management,both of which base their findings on rational decision-making.

Key words: strategy, strategy process, strategic decision-making, dynamic programming