Question one, part a:1. These historical inputs are recognized and understood by the phrase “the way we do things around here” or the way business is now. History is the fusion and creation of internal and external cultural factors from the past that define the paradigm and context through which strategies were developed by decision makers within the company. History is the antecedents to strategy development which includes stories, symbols, power, structure, controls, rituals, and routines (refer to Appendix 1). Identifying historical context has the advantage of allowing companies to develop strategies while avoiding recency bias and serving as a reference point to legitimize future strategies based on past successes. It allows companies to develop strategic scenarios based on adapting past situations with different variables and to innovate based on historical expertise. This combination of actions, thoughts and historical procedures forms a path dependency which is the boundary across which the strategy develops and this has an impact on subsequent outcomes or the way the business wants to be (Johnson, Whittington, Scholes, 2011 ). Historical path dependence can leave businesses in a difficult position as they seek to find a balance between maintaining competencies, core values ​​and stakeholder trust as the dynamism of the business environment increases at an accelerating rate (Reuters, 2011) . The ability to balance historical competencies and adapt them to future benefits will impact the positive or negative outcomes of future strategic choices (Chi, Kilduff & Gargeya, 2009). Strategy is not an entity in itself, but is the emergent synthesis of a combination of historical and future contingencies, attitudes, capabilities… half of the article… mance, International Journal of Productivity and Performance Management, Vol. 58 No. 7, pp. 645-669 (Emerald Group Publishing) viewed 9 September 2011.Dictionary.com, 2011, Legitimacy, viewed 10 September 2011, < http://dictionary.reference.com/browse/legitimacy>Johnson, G, Whittington & R , Scholes, K, 2011, “Exploring Strategy”, Prentice Hall, London.Marketingteacher.com, 2011, Generic Strategies - Michael Porter (1980), viewed 10 September 2011, < http://marketingteacher.com /lesson-store /lesson-generic-strategies.html>Reuters.com, 2011, “Market volatility dampens small business growth,” viewed September 9, 2011, oxfordcollegeofmarketing.com, 2011, From goals to strategy, viewed September 9 10, 2011,