1: Introducing Strategy

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Learning Outcomes (1)

Understand the characteristics of strategic decisions and what is meant by strategy and strategic management, distinguishing them from operational management

Understand how strategic priorities vary by level: corporate, business, and operational

Understand the basic vocabulary of strategy

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Learning Outcomes (2)

Understand the three key elements of the Exploring Corporate Strategy strategic management model

Understand the kinds of people involved in strategy – managers, in-house specialists and strategy consultants – and the work they do

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What is Strategy?

Strategy is the direction and scope of an organisation over the long term, which

achieves advantage in a changing environment through its configuration of

resources and competences with the aim of fulfilling stakeholder expectations.

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Characteristics of Strategic Decisions

Long-term direction

Scope of an organisation’s activities

Competitive advantage

Strategic fit with business environment

Organisation resources and competences

Values and expectations of power players

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Implications of Strategic Decisions

Complexity

Uncertainty

Operational decisions

Integration

Relationships and networks

Change

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Levels of Strategy

Operational strategy

Business-level strategy

Corporate-level

strategy

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What is a Strategic Business Unit?

A strategic business unit (SBU) is a part of an organisation for which

there is a distinct external market for goods or services that is different

from another SBU.

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Vocabulary of Strategy

Mission

Vision

Goal

Objective

Strategic capability

Strategies

Business model

Control

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Vocabulary of Strategy: Nokia

Vision/Mission

Connecting is about helping people feel close to what matters. Wherever, whenever, Nokia believes in communicating, sharing, and in the awesome potential in connecting the 2 billion who do with the 4 billion who don’t.

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Vocabulary of Strategy: Kingston University

Mission

To promote participation in higher education, which it regards as a democratic entitlement; to strive for excellence in learning, teaching, and research; to realise the creative potential and fire the imagination of all its members; and to equip its students to make effective contributions to society and the economy.

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What is Strategic Management?

Strategic management includes understanding the strategic position of a organisation, making strategic

choices for the future, and managing strategy in action.

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Exhibit 1.3 The Exploring Corporate Strategy Model

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What is Strategic Position?

Strategic position is concerned with the impact on strategy of the external

environment, an organisation’s strategic capability and the expectations and

influence of stakeholders.

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Strategic Position

The Strategic Position

Environment

Culture

PurposeCapability

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What are Strategic Choices?

Strategic choices involve understanding the underlying bases

for future strategy at both the business unit and corporate levels

and the options for developing strategy in terms of both the directions and methods of

development.

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Strategic Choices

Strategic Choices

Business-level

Innovation

InternationalCorporate-

level

Evaluation

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What is Strategy in Action?

Strategy in action is concerned with ensuring

that strategies are working in practice.

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Strategy in Action

Strategy in Action

Processes

Changing

ResourcingStructuring

Practice

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Research Approaches to Strategy

Content Process

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Perspectives on Strategy

Complexity Theory

Discourse

Strategy-as-Practice

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Strategy Lenses

Strategy as design

Strategy as experience

Strategy as ideas

Strategy as discourse

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Exhibit 1.i Design Lens

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Exhibit 1.ii Experience Lens

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Exhibit I.iv Idea Lens

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Exhibit I.v Discourse Lens

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Case Example: Electrolux

Review the strategic choices Electrolux has?