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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. *
Considine 2011-12 BLB10089-3. Text: Exploring (Corporate)
Strategy, 2008 or 2011, Pearson Education Ltd
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Strategy Evolution
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Characteristics of Strategic DecisionsLong-term directionScope
of an organisations activitiesCompetitive advantageStrategic fit
with business environmentOrganisation resources and
competencesValues and expectations of power players*
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LEVELS OF STRATEGYCorporate levelDetermine overall scope of the
organisationAdd value to the different business unitsMeet
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
marketsOperational LevelHow different parts of organisation deliver
strategy*
Considine 2011-12 BLB10089-3. Text: Exploring (Corporate)
Strategy, 2008 or 2011, Pearson Education Ltd
-
Levels of Strategy*
Operational strategy
Business-level strategyCorporate-level strategy
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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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Strategic Position*The Strategic
PositionEnvironmentCulturePurposeCapability
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What is Strategic Position?Strategic position is concerned with
the impact on strategy of the external environment, an
organisations strategic capability and the expectations and
influence of stakeholders. *
Considine 2011-12 BLB10089-3. Text: Exploring (Corporate)
Strategy, 2008 or 2011, Pearson Education Ltd
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Processes of Strategy DevelopmentIntended strategiesDeliberate
management intentEmergent strategiesDevelop out of social and
political processes in and around organisations
*Most strategies are a combination of intended 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.*Prescriptive and Emergent Approaches to Strategy
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The Strategy LensesStrategy as designLogical analytical
processPlanned implementationTop manager drivenStrategy as
experienceAdaptation of past strategies based on
experienceInfluenced by taken for granted assumptions
(culture)Bargaining and negotiationStrategy as ideasImportance of
variety and diversity for innovationEmergent strategy from within
and around the organisationTop managers create the conditions for
this to take placeStrategy as DiscourseThis 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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*The Four strategy lenses: a summary
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For Further readingStrategy Safari (Henry Mintzberg)
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