1: Introducing Strategy

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 1-2

 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 Integration
Uncertainty Relationships and
networks
Operational
decisions Change

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 Levels of Strategy

Corporate-
level
strategy

Business-level
strategy

Operational 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 Strategic capability

Vision Strategies
Goal Business model
Objective 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

Environment

The
Capability Strategic Purpose
Position

Culture

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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

Business-
level

Corporate-
level International
Strategic
Choices

Innovation 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

Processes

Structuring Resourcing
Strategy
in Action

Changing 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?

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