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 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 1-3

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. 1-4

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 1-5

Implications of Strategic Decisions Complexity Uncertainty Operational decisions Integration Relationships and networks Change 1-6

Levels of Strategy Corporate- level strategy Business-level strategy Operational strategy 1-7

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. 1-8

Vocabulary of Strategy Mission Vision Goal Objective Strategic capability Strategies Business model Control 1-9

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. 1-10

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. 1-11

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. 1-12

Exhibit 1.3 The Exploring Corporate Strategy Model 1-13

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. 1-14

Strategic Position The Strategic Position Environment Capability Purpose Culture 1-15

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. 1-16

Strategic Choices Strategic Choices Business- level Corporate- level International Innovation Evaluation 1-17

What is Strategy in Action? Strategy in action is concerned with ensuring that strategies are working in practice. 1-18

Strategy in Action Strategy in Action Processes Structuring Resourcing Changing Practice 1-19

Research Approaches to Strategy Content Process 1-20

Perspectives on Strategy Complexity Theory Discourse Strategy-as-Practice 1-21

Strategy Lenses Strategy as design Strategy as experience Strategy as ideas Strategy as discourse 1-22

Exhibit 1.i Design Lens 1-23

Exhibit 1.ii Experience Lens 1-24

Exhibit I.iv Idea Lens 1-25

Exhibit I.v Discourse Lens 1-26

Case Example: Electrolux Review the strategic choices Electrolux has? 1-27