Considine 2011-12 BLB10089-3. Text: Exploring (Corporate) Strategy, 2008 or 2011, © Pearson Education Ltd 1 Introducing Strategy Pete Considine Readings:

Considine 2011-12 BLB10089-3. Text: Exploring (Corporate) Strategy, 2008 or 2011, © Pearson Education Ltd

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Introducing Strategy

Pete Considine

Readings: Chapter 1Exploring Corporate Strategy8th Edition


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Learning Outcomes (1)

To understand:• The basic concepts of strategy and strategic

management • The general characteristics of strategic decisions

and what is meant by strategy and strategic management, distinguishing them from operational management

• How strategic priorities vary by level: corporate, business, and operational

• The basic vocabulary of strategy


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Learning Outcomes (2)

To Understand:• The three key elements of the

Corporate Strategy in terms of the strategy process and strategic management model in Johnson et al. (2008)

• The differences between ‘prescriptive’ and ‘emergent’ approaches to strategy


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Introducing Strategy – Outline

• What is strategy and strategic management?

• Strategic priorities at corporate, business and operational level

• Vocabulary of strategy

• Exploring Corporate Strategy – a

strategic management “model”


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What is Strategy?

Many definitions exist (see the modules Backboard site for week 1). The one below is from the core text: Johnson et al. (2008) Exploring Corporate

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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Strategic Decisions are Likely to :

• Be complex in nature

• Be made in situations of uncertainty

• Affect operational decisions

• Require an integrated approach (both inside and outside an organisation)

• Involve considerable change and also

• Relationships and networks


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LEVELS OF STRATEGY• Corporate level

– Determine overall scope of the organisation

– Add value to the different business units

– Meet expectations of stakeholders

• Business level (SBU) – an SBU is part of an organisation for which there is a distinct external market for goods and service that is different from another SBU – an example?

– SBU-s focus on “How to compete successfully in particular

markets”

• Operational Level

– How different parts of organisation deliver strategy


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Levels of Strategy

Operational strategy

Business-level strategy

Corporate-level

strategy


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The Vocabulary of Strategy

• Mission – overriding purpose• Vision/strategic intent – desired future state• Goal – general statement of aim or purpose• Objective – quantification or more precise

statement of goal• Strategic capability – resources, activities

and processes• Business model – how product, service and

information flow• Control – monitoring of action steps


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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.

• Staffordshire University university_plan_2007_2012_tcm44-4257.pdf

http://www.nokia.com/


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So 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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Exploring Corporate Strategy“Model”?


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Strategic Position

The Strategic Position

Environment

Culture

PurposeCapability


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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. (further readings in Exploring Corporate Strategy, and on Blackboard)


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Strategic Choices

Strategic Choices

Business-level

Innovation

InternationalCorporate-

level

Evaluation


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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.

Further Readings in Core text on Blackboard (& workbook)


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Strategy in Action

Strategy in Action

Processes

Changing

ResourcingStructuring

Practice


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Strategy in Action‘Strategy in action is

concerned with ensuring that strategies are

working in practice’Involving:• Structuring the organisation• Marshalling resources (people,

information, finance, technology)• Managing change


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Processes of Strategy Development

• Intended strategies– Deliberate management intent

• Emergent strategies– Develop out of social and political processes

in and around organisations

Most strategies are a combination ofintended and emergent processes

Most strategies are a combination ofintended and emergent processes


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• Prescriptive – Corporate strategy is essentially a linear and rational process, starting with where-are-we-now and then developing new strategies for the future. Thus, strategy is prescribed in advance.

• Emergent – Corporate strategy emerges, adapting to human needs and continuing to develop over time. Thus, strategy is evolving, incremental and continuous, and therefore it is hard to summarise into a plan.

(see workbook/Blackboard for related Self Managed Exercises – also further readings in journal articles such as Mintzberg and Waters (1985) Of Strategies, Deliberate and Emergent and readings in “core text” Chapter 11)

Prescriptive and Emergent Approaches to Strategy


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Challenges of Strategic Management

• Prevent strategic drift– Progressive failure to address strategic position – Deterioration of performance

• Understand and address contemporary issues:– Internationalisation– E-Commerce– Changing purposes– Knowledge and learning

• View strategy in more than one way– Three strategy lenses – Design, Experience, Ideas

• Managing strategy in different contexts SME, MNE and...?


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The risk of strategic driftA progressive failure to address loss of strategic position

Exhibit 1.4


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Environment Values Resources

Resources

Values

Environment

•The EVR framework (J.L Thompson 2001 p71 ) separates out the SWOT.

•Here have “EVR congruence” between with overlap between Critical Success Factors (CFS’s) and resources or competence's

•Ie the firms strategies would appear to be consistent

Strengths/ Weaknesses

Opportunities And Threats

Values and Leadership


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Environment Values Resources

Resources

Values

Environment •This time the incongruence is

due to strategic drift where an internally cohesive firm simply loses touch with its competitive environment.

•Getting back in alignment often requires a change in management.

•New ideas/innovations are required and a rethink of the firms basic assumptions.

STRATEGIC DRIFT”


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Contemporary Themes

• Internationalisation

• E-Commerce – and spatial technologies

• Changing purpose of organisations

• Knowledge and learning


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The Strategy Lenses• Strategy as design

– Logical analytical process– Planned implementation– Top manager driven

• Strategy as experience– Adaptation of past strategies based on experience– Influenced by taken for granted assumptions (culture)– Bargaining and negotiation

• Strategy as ideas– Importance of variety and diversity for innovation– Emergent strategy from within and around the organisation– Top managers create the conditions for this to take place

• Strategy as Discourse– This lens sees strategy in terms of language, recognising that

managers spend most of their time communicating – based on power, influence, making strategic proposals and debating issues.


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Exhibit I.iv

The Four strategy lenses: a summary


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Chapter Summary

• Strategy as direction and scope of an organisation over the long term

• Strategic decisions made at multiple levels in an organisation

• Strategic position, strategic choices, and strategy in action as the major elements of strategic management

• Two primary streams include strategy content and strategy process

• Strategic issues best seen through several lenses


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Reminders

• Do not forget to visit the Blackboard site for further readings and learning exercises for this week and details on the module/assessment.

• Obtain the core text Johnson Scholes and Whittington (2008) “Exploring Corporate Strategy” (ASAP)

• Prepare work for tutorials and portfolios

Documents

Considine 2011-12 BLB10089-3. Text: Exploring (Corporate) Strategy, 2008 or 2011, © Pearson Education Ltd 1 Introducing Strategy Pete Considine Readings: