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

Strategy Evolution

Characteristics of Strategic DecisionsLong-term directionScope of an organisations activitiesCompetitive advantageStrategic fit with business environmentOrganisation resources and competencesValues and expectations of power players*

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

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.*

Strategic Position*The Strategic PositionEnvironmentCulturePurposeCapability

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

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

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

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

For Further readingStrategy Safari (Henry Mintzberg)

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