This document introduces key concepts and terms related to strategy and strategic management. It discusses strategy as the long-term direction and scope of an organization to achieve competitive advantage. Strategic management involves analyzing an organization's strategic position, making strategic choices for the future, and managing strategy implementation. The document outlines different levels of strategy, from corporate to business to operational, and introduces perspectives and frameworks for understanding strategy.

1. 1: Introducing Strategy

2. 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
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-2

3. 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
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-3

4. 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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-4

5. 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
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-5

6. Implications of Strategic Decisions
Complexity
Uncertainty
Operational
decisions
Integration
Relationships and
networks
Change
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-6

7. Levels of Strategy
Corporate-level
strategy
Business-level
strategy
Operational strategy
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-7

8. 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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-8

9. Vocabulary of Strategy
Mission
Vision
Goal
Objective
Strategic capability
Strategies
Business model
Control
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-9

10. 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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-10

11. 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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-11

12. 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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-12

13. Exhibit 1.3 The Exploring
Corporate Strategy Model
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-13

14. 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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-14

15. Strategic Position
Environment
The
Strategic
Position
Capability Purpose
Culture
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-15

16. 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.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-16

17. Strategic Choices
Business-level
Strategic
Choices
Corporate-level
Innovation
International
Evaluation
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18. What is Strategy in Action?
Strategy in action is
concerned with ensuring
that strategies are
working in practice.
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-18

19. Strategy in Action
Processes
Structuring Resourcing
Strategy
in Action
Changing
Practice
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-19

20. Research Approaches
to Strategy
Content Process
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-20

21. Perspectives on Strategy
Complexity Theory
Discourse
Strategy-as-Practice
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-21

22. Strategy Lenses
Strategy as design
Strategy as experience
Strategy as ideas
Strategy as discourse
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-22

23. Exhibit 1.i Design Lens
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-23

24. Exhibit 1.ii Experience Lens
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-24

25. Exhibit I.iv Idea Lens
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-25

26. Exhibit I.v Discourse Lens
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-26

27. Case Example: Electrolux
 Review the strategic choices
Electrolux has?
Exploring Corporate Strategy 8e, © Pearson Education 2008 1-27