Session 3 Part 1 The Strategic Position Business Strategy

Organisational purposes Corporate governance Whom should the organisation serve? How should purposes be determined? Business ethics Which purposes should be prioritised? Why? Organisational purposes Mission Objectives Cultural context Which purposes are prioritised? Why? Stakeholders Whom does the organisation serve?

Common conflicts of expectations Growth versus profitability Short term versus investment Control versus professional managers Ownership versus funding Ownership versus accountability Efficiency versus jobs Mass appeal versus quality

Positioning related to specific strategies Stakeholders Positioning related to specific strategies Stakeholders may need to be sub-divided Distinguish the role for the individual Identify “political” priorities by: plot how stakeholders would line up plot how stakeholders would need to line up identify mismatches include key maintenance activities

For external stakeholders Control of strategic resources Within organisations Hierarchy (formal power), e.g. autocratic decision making Influence (informal power), e.g. charismatic leadership Control of strategic resources, e.g. strategic products Possession of knowledge and skills, e.g. computer specialists Control of the environment, e.g. negotiating skills Involvement in strategy implementation, e.g. by exercising discretion For external stakeholders Control of strategic resources e.g. materials, labour, money Involvement in strategy implementation, e.g. distribution outlets, agents Possession of knowledge (skills), e.g. subcontractors Through internal links, e.g. informal influence

Should organisations be responsible for ... INTERNAL ASPECTS Employee welfare ... providing medical care, assistance with mortgages, extended sickness leave, assistance for dependants, etc.? Working conditions ... enhancing working surroundings, social and sporting clubs, above minimum safety standards, etc.? Job design ... designing jobs to the increased satisfaction of workers rather than for economic efficiency?

Should organisations be responsible for ... EXTERNAL ASPECTS Green issues Products Markets and marketing Suppliers Employment Community activity