unit

Strategy

UNIT 9 STRATEGY

However beautiful the strategy, you should occasionally look at the results.

Read this letter from Marjorie Scardino to investors. Imagine you are a
manager talking to a group of staff at Pearson. How would you communicate
the strategy in your own words?

Winston Churchill (18741965), British Prime Minister

Our strategy

overview

 /RQJWHUPLQYHVWPHQWLQFRQWHQW

listening and
discussion
Strategy, goals and
values
reading and
language
Living strategy
and death of the
ve-year plan
Rhetorical
questions

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business skills
Brainstorming and
creativity
Writing: mission
statements

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case study
Stella International
Airways: strategy
for the skies

listening and
discussion

Look at the statements below about company goals and strategy. To what
extent do you agree? Justify your ideas to your partner by giving examples.

Strategy, goals
and values

PA = partially agree
CA = completely agree

Marjorie Scardino
Watch the
interview on
the DVD-ROM.

PD = partially disagree
CD = completely disagree

Any organisation should only have to communicate its business strategy to

management, shareholders and investors.

A successful business should make a positive contribution to society.

A good company should mainly focus on competitive pricing and good prots.

The greatest companies can make an impact on the way consumers shop,
think and behave.

Choose the correct word to make a partnership related to strategy with each
word in bold. All the word partnerships appear in the letter in Exercise E.
1 digital

businesses / bubble

wider

2 international

expansion / world

challenged

economies / prots

3 nancial

debt / position

strong

position / change

4 geographic

industries / diversity

fast-moving diversity / world

competitors / markets

CD3.33.6 Listen to four people talking about companies they admire.

How has each company been successful, according to the speakers?

Look at this advice on business strategy. Which strategies are mentioned by

the speakers in Exercise G? Discuss which ones you think are the most valuable.

CD3.1 Listen to the rst part of an interview with Marjorie Scardino,

CEO of Pearson, the international media group, and improve the summary
by adding ve or six more details. Use one to ve words per detail.

1 It is best not to run before you can walk.

Pearson has always been devoted to content, so, for example, a child can use interactive
tools. Pearson starts with the premise that the company has to communicate what it is. Chief
Executive Marjorie Scardino believes organisations have a strong company culture. Whenever
necessary, she personally writes to all staff in Pearson. Management also makes an effort to
communicate in a transparent way so that every one of the companys employees understands.

3 Innovation is key.

2 Holding on to talented staff is one of the biggest challenges.

4 Hold back from launching new products or entering new markets and youll lose out.
5 A retailer can differentiate itself through pricing and an afnity with the customer.
6 Business leaders must be able to deploy specialist knowledge.
7 The goal of a company should be to produce perfect products.

CD3.2 Listen to the second part of the interview. How does Pearson

8 Big companies must foster the entrepreneurialism that exists in smaller ones.

communicate its goals? Write a summary.

D

82

Discuss how you would communicate the goals and values of your place of
study/work.

Consider the strategy of two companies you admire. What do you think they
set out to achieve, and how have they been successful?
83

UNIT 9 STRATEGY

reading and
language
Long-term planning
is essential for any
company. It plots
where a company
wants to go, and
how its going to
get there.

UNIT 9 STRATEGY

Look at the two views about planning on the left. Which do you agree with,
and why? Work with a partner to produce a statement about planning that
you both agree with.

In what ways do you think the four companies on the left below have
developed good strategies? Read the article on the opposite page quickly
and compare your answers.

Strategic planning
is a complete
waste of time. In
this day and age,
you simply cannot
foresee exactly
how markets will
evolve.

/LYLQJVWUDWHJ\DQGGHDWKRIWKHYH\HDUSODQ
by Stefan Stern

Read the article again and complete this summary, using between one and
three words in each gap.
According to the article, old-style strategic planning is a thing of the past. However,
1
beyond trying to survive, companies do need a strategy for
, even in periods of
2
3
, in order to ensure healthy
and competitive advantage.
In a paper on strategic development, experts at Boston Consulting Group talk about the
4
concept of
. They argue good companies act in ve key ways: they respond to
5
6
7
very fast; they try to work with
; they perceive changes in
;
8
they trial their goods and services effectively; and they work with the best
.
9
Strategy has changed, and companies need to be more
.





Discuss these questions.

1

Who do you think is the intended audience of the article?

What is the writers purpose? Is there more than one, e.g. to explain/persuade?

Are there any quotations used in the article? For what purpose are the quotations used?



4 What emphatic techniques are used? Are any repeated?

Language reference: rhetorical questions page 137

Match the words and expressions from the article (18) to their denitions
and synonyms (ah).
1 downturns
(lines 2324)
2 deductive (line 48)
3 oversee (line 71)
4 hidebound (line 77)

6 resilience (line 107)

7 building in some
slack
(lines 107108)
8 endure (line 114)



a) creating some free time when youre not busy

b) periods when business activity is reduced and conditions
become worse



c) ability to become strong and successful again after a difcult

situation or event
d) using the knowledge and information you have in order to
form an opinion about something

5 awareness
(line 106)





e) continue to exist for a long time

f ) knowledge or understanding of a particular subject or situation
g) be in charge of a group of workers and check that the work is
done satisfactorily



h) having old-fashioned attitudes and ideas



Replace the words in italic in these sentences with the words or phrases
from the article in the box.
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The new shopping mall is very successful, but the local shops are closing down.

Their legal team is able to think and understand things very quickly.

Everyone was relaxed at the meal, and the conversation was continuous and uninterrupted.

4 This is not the best time to make radical changes to our strategy.
84













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thriving



The shoe manufacturers know about the importance of the threat posed by foreign imports.

How have businesses you are familiar with adapted to change? You could
choose from one of these sectors. Talk about the challenges they faced and
how they responded.
a bank

a supermarket

a car manufacturer

a mobile phone company

a gym chain

a clothes brand

an Internet service provider

an airline

85

UNIT 9 STRATEGY

business skills

UNIT 9 STRATEGY

Brainstorming
and creativity

Discuss these questions.

What do these quotes on creativity mean? Which do you like best?

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Linus Pauling, chemist and Nobel prize winner

Creativity comes from trust.

Trust your instincts.
Rita Mae Brown, writer

CD3.9 Read this information about high-street retailer Ross & Franks.
Then listen to a management meeting between the CEO, the Director of
Marketing and the Head of Corporate Communications to discuss the brands
future and take notes.
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Decision by democratic majority vote

is a ne form of government, but its
a stinking way to create.

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Lillian Hellman, playwright

When are you at your most creative? First thing in the morning? Late at night? Working
with a group of people or on your own?

Which of these statements do you agree with most/least? Why?

The management in an organisation should be responsible for coming up with
any new ideas.

Linus Pauling

Writing:
mission
statements

Hold a meeting to brainstorm a new marketing strategy for R&F.

Look at parts of some mission statements (af ) and match them to

the organisations (16). Which ones do you think are the best and
most creative?
1 Avis

3 Procter & Gamble

5 International Committee of the Red Cross

The typical work environment is not conducive to being creative.

2 Google

4 Microsoft

6 The World Bank

Whenever we have brainstorming meetings, any interesting ideas are usually

dismissed by some of the more cynical team members.

a) To ght poverty with passion and professionalism for lasting results

A brainstorming session should represent our customer base. If half our customers
are women, then 50 per cent of participants should be women, too.

b) We will ensure a stress-free car-rental experience by providing superior services that

cater to our customers individual needs.
c) To protect the lives and dignity of victims of armed conict and other situations of
violence and to provide them with assistance

CD3.7 Listen to a trainer discussing brainstorming techniques with some

d) To organise the worlds information and make it universally accessible and useful

clients. Complete these tips with between one and four words in each gap.
Do you know of any other techniques?

e) We will provide branded products and services of superior quality and value that
improve the lives of the worlds consumers.

Tips for brainstorming

f ) To help people and businesses throughout the world realise their full potential

.
Clearly dene the
2
There shouldnt be more than
.
3
Think of as many
as possible.
4
all ideas, however wild.
5
Dont spend too long
.
6
Be enthusiastic and
of other peoples
8
ideas after the session.

How to develop a mission statement

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CD3.8 Listen to the next part of the training session and note down the
seven principles of Koinonia.

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Look at the expressions in the Useful language box below and decide which
ones you would use for a) leading the session, b) contributing and building
on ideas, and c) responding to ideas.

useful language
EXPRESSIONS FOR BRAINSTORMING

So, whod like to get the ball rolling?

Ive got one! What if we ? / How about ?
Lets just get the ideas down at this stage.
Thats a great/wacky/cool/unusual idea!
Yes, and heres what Id add to your suggestion
Im thinking (more) along the lines of
Youve taken the words right out of my mouth.

86

Does anyone have any more ideas?

The rule is there are no bad ideas.
I was just going to say that!
Try and suspend judgement until later.
Id like to expand on that.
Lets go around the table once and then open the discussion up.
Heres another thought
Yes, I like that.

Identify four criteria for writing mission statements based on this extract.

You are developing the mission statement for your organisation. Set your
criteria (see Exercise H) and brainstorm some ideas. Write the rst draft.

87

UNIT 9 STRATEGY

3TELLA)NTERNATIONAL!IRWAYS

%DFNJURXQG
Stella International Airways is a Dutch
company with over 250 aircraft. It is one
of Europes leading scheduled carriers,
operating both short-haul and long-haul
routes. In recent years, structural shifts in
the European aviation business have become
apparent, with the trend of passengers
trading down to low-cost carriers (LCCs).

The company has managed to offset

much of the rising cost through fuel
surcharges passed on to customers, but this
has also led to further falls in passenger
numbers, and a shift away from rst- and
business-class to economy travel has become
evident. The company is expected to report a
second consecutive annual loss this year.

Stella, like other established carriers, has

been badly battered by the success of lowcost airlines, losing market share on many
short-haul routes. In addition, the rise in oil
prices has mirrored the fall in Stellas shares
over the past year.

Given this outlook, the airlines CEO has to

devise a strategy to secure the long-term
future of the business.

4%

7%

3%
4%

33%

5.5%
9.5%

12%
22%

Fuel and oil

Staff
Airport and
handling charges
Route charges
and landing fees
Depreciation
Maintenance (parts)
Ground equipment
and IT costs
Marketing and sales
Other

Stella International Airways operating

cost breakdown, last quarter

6%
1.5%
1.5%
1.5%

1%

7.5%
45%

11%

11%
14%

!IR

WAYS

Fuel and oil

Airport and
handling charges
Staff
Route charges
and landing fees
Ground equipment
and IT costs
Maintenance (parts)
Aircraft rentals
Depreciation
Marketing and sales
Other

Rival LCCs operating cost

breakdown, last quarter

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88

7DVN

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An airline needs to make strategic changes in order

to secure its long-term future

CD3.103.12 Managers

7DVN

A)NTERN
ELL

ONAL
A TI

STRATEGYFORTHESKIES

3T

The CEO asked the management team at Stella to report on the airlines
strengths and weaknesses. Listen to these comments and take notes.
CD3.133.15 Staff

6:27DQDO\VLV
You are the management team at Stella responsible for devising a new strategic plan for the company.
Use a SWOT analysis and brainstorm ideas to help you prepare your new strategic vision for the company.
How can you seek to capitalise on the strengths, eliminate the weaknesses, seize the best opportunities
and counter the threats?
Strengths (internal)

Weaknesses (internal)

safety record

losses over two consecutive years

Opportunities (internal and external)

Threats (internal and external)

reducing operating expenses, esp. staff costs

competition from LCCs

%UDLQVWRUPLQJ
Brainstorm a marketing campaign for this alliance based
on the new strategy.
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Watch the Case study

commentary on the DVD-ROM.

:ULWLQJ
Prepare a summary of your
proposals to present to the
companys board of directors.
Writing le pages 146147

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