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1: Introducing Strategy
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-2
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
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-3
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
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-4
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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-5
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
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-6
Implications of Strategic Decisions
Complexity
Uncertainty
Operational decisions
Integration
Relationships and networks
Change
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-7
Levels of Strategy
Operational strategy
Business-level strategy
Corporate-level
strategy
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-8
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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-9
Vocabulary of Strategy
Mission
Vision
Goal
Objective
Strategic capability
Strategies
Business model
Control
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-10
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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-11
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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-12
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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-13
Exhibit 1.3 The Exploring Corporate Strategy Model
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-14
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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-15
Strategic Position
The Strategic Position
Environment
Culture
PurposeCapability
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-16
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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-17
Strategic Choices
Strategic Choices
Business-level
Innovation
InternationalCorporate-
level
Evaluation
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-18
What is Strategy in Action?
Strategy in action is concerned with ensuring
that strategies are working in practice.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-19
Strategy in Action
Strategy in Action
Processes
Changing
ResourcingStructuring
Practice
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-20
Research Approaches to Strategy
Content Process
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-21
Perspectives on Strategy
Complexity Theory
Discourse
Strategy-as-Practice
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-22
Strategy Lenses
Strategy as design
Strategy as experience
Strategy as ideas
Strategy as discourse
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-23
Exhibit 1.i Design Lens
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-24
Exhibit 1.ii Experience Lens
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-25
Exhibit I.iv Idea Lens
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-26
Exhibit I.v Discourse Lens
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-27
Case Example: Electrolux
Review the strategic choices Electrolux has?
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