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
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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
Integration
Uncertainty
Relationships and
networks
Operational
decisions
Change
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Levels of Strategy
Corporatelevel
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
Capability
The
Strategic
Position
Purpose
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
Businesslevel
Corporatelevel
Strategic
Choices
Innovation
International
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
Strategy
in Action
Changing
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Resourcing
Practice
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Research Approaches
to Strategy
Content
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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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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
 Strategy is a kind of job
 Strategic issues best seen through several lenses
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Case Example: Electrolux (1)
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Case Example: Electrolux (2)
 Why are the issues facing
Electrolux strategic?
 What levels of strategy can you
identify?
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Case Example: Electrolux (3)
 Review the strategic choices
Electrolux has?
 What are the main issues that might
determine the success or failure of
Electrolux’s strategies?
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