1 2-9.10 Introducing Strategy

Question 1

Definitions of Strategy

Answer 1

• ‘..the determination of the long-run goals and objectives of an enterprise and the adoption of courses of action and the allocation of resource necessary for carrying out these goals’
  Alfred D. Chandler
• ‘Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value’
  Michael Porter
• ‘..a pattern in a stream of decisions’
  Henry Mintzberg
• ‘..the long-term direction of an organisation’
  Exploring Strategy

Question 2

What are Strategic decisions about?

Answer 2

• The long-term direction of an organisation
• The scope of an organisation ́s activities
• Gaining advantage over competitors
• Addressing/react on changes in the business environment
• Building on resources and competences (capability)
• Values and expectations of stakeholders

Question 3

What are Strategic decisions are likely to?

Answer 3

• Be complex in nature
• Be made in situations of uncertainty
• Affect operational decisions
• Require an integrated approach (both inside and outside an organisation)
• Involve considerable change

Question 4

Name Three horizons of strategy

Answer 4

1.Extend and defend core business
2.Build emerging businesses
3.Create viable options
➔Over the years you build the horizons and increase profit

Question 4

Who are Stakeholders

Answer 4

Stakeholders are those individuals or groups that depend on an organisation to fulfil their own goals and on whom, in turn, the organisation depends.

Question 5

Difference between Stakeholder and Shareholder

Answer 5

Stakeholders are shareholders/ long-time customers/ employees.
Shareholders are always stakeholders but stakeholders are not always shareholders.

Question 6

Name Levels of strategy

Answer 6

1. Operational strategy
2. Business-level strategy
3. Corporate level strategy

Question 7

What is concerned Operational strategy with?

Answer 7

Operational strategy is concerned with how different parts of the organisation deliver the strategy in terms of managing resources and people

Question 8

What is concerned Business-level strategy with?

Answer 8

Business-level strategy (Geschäftsebene) is concerned with the way a business seeks to compete successfully in its particular market

Question 9

What is concerned Corporate level strategy with?

Answer 9

Corporate-level strategy (Unternehmensebene) is concerned with the overall scope of an organisation and how value is added to the constituent business units

Question 10

What three main themes Strategy statements should have?

Answer 10

• the fundamental goals that the organisation
  seeks, which reflect the stated mission, vision
  and objectives;
• the scope or domain of the organisation’s
  activities;
• and the particular advantages or capabilities
  it has to deliver all of these.

Question 11

What does The Exploring Strategy Model includes?

Answer 11

The Exploring Strategy Model includes understanding the strategic position of an organisation; assessing strategic choices for the future; and managing strategy in action .

Question 12

What is The strategic position concerned with?

Answer 12

The strategic position is concerned with the impact on strategy of the external environment, the organisation ́s strategic capability (resourced and competences), the organisation ́s goals and the organisation ́s culture

Question 13

Fundamental questions for Strategic position

Answer 13

• What are the environmental opportunities and threats?
• What are the organisation’s strengths and weaknesses?
• What is the basic purpose of the organisation?
• How does culture fit with the strategy?

Question 14

What do Strategic choices involve?

Answer 14

Strategic choices involve the options for strategy in terms of both the directions in which strategy might move and the methods by which strategy might be pursued

Question 15

Fundamental questions for strategic choice

Answer 15

• How should individual business units compete?
• Which businesses to include in the portfolio?
• Where should the organisation compete internationally?
• Is the organisation innovatingappropriately?
• Should the organisation buyother companies, formalliances or go it alone?

Question 16

Name Typical strategic choices

Answer 16

• Business strategy
• Corporate strategy and diversification
• International strategy
• Innovation and entrepreneurship
• Acquisitions and alliances

Question 17

What is Strategy in Action about?

Answer 17

Strategy in action is about how strategies
are formed and how they are implemented.
The emphasis is on the practicalities of
managing.

Question 18

Which issues are covered in Strategy in Action?

Answer 18

• Strategy performance and evaluation
• Strategy development processes
• Organising
• Leadership and strategic change
• Strategy practice

Question 19

Fundamental questions for Strategy in action

Answer 19

• Which strategies are suitable, acceptable and feasible?
• What kind of strategy-making processes are
  needed?
• What are the required organisation structures and systems?
• How should the organisation manage the change needed?
• Who should do what in the strategy process? Which people and what activities?

Question 20

What managers are concerned with strategy?

Answer 20

All managers are concerned with strategy

Question 21

How are top managers concerend with strategy?

Answer 21

• Top managers frequently formulate and control strategy but may also involve others in the process.

Question 22

How are middle and lower level managers concerend with strategy?

Answer 22

• Middle and lower level managers have to meet
  strategic objectives and deal with constraints.

Question 23

How are all managers concerend with strategy?

Answer 23

• All managers have to communicate strategy to their teams.
• All managers can contribute to the formation of
  strategy through ideas and feedback.

Question 24

**

What strategy specialists may organisation have?

Answer 24

• Many large organisations have in-house
  strategic planning or analyst roles.
• Strategy consultants can be engaged from
  management consulting firms
• There are a growing number of specialist
  strategy consulting firms

Question 25

Name Three brunches of strategy

Answer 25

• Context – Internal and external
• Content – strategic options
• Process – formation and implementation

Question 26

What are researches of context strategy brunch?

Answer 26

• Industry analysis
• Cultural analysis
• Resource-based view

Question 27

What are researches of content strategy brunch?

Answer 27

Strategy and Performance

Question 28

What are researches of process strategy brunch?

Answer 28

• Strategic planning
• Choice and change
• Strategy-as-practice

Question 29

Give an example of 4 contexts where The Exploring Strategy Model can be applied

Answer 29

• Small businesses (strategic purpose, growth issues and retaining independence)
• Multinational corporations (geographical scope; cultural issues and structure/control issues)
• Public sector organizations (service/quality and managing change issues)
• Not for profit organizations (purpose and funding issues)

Question 30

What are the strategy lenses?

Answer 30

The strategy lenses are ways of looking at strategy issues differently to generate additional insights.

Question 31

What do you need the strategy lenses for?

Answer 31

Looking at problems in different ways will raise new issues and new solutions.

Question 32

Name 4 ways strategy can be seen as

Answer 32

• Design
• Experience
• Variety
• Discourse

Question 33

Make a short introduction to strategy as design

Answer 33

• Strategy can be designed in advance and a detailed plan conceived by strategists.
• This approach is rational and objective.
• Little attention is paid to cultural, political or unpredictable aspects of strategy.
• The design lens is systematic, analytical and logical.

Question 34

Make a short introduction to strategy as experience

Answer 34

• Strategy is influenced by the experience of managers.
• The organisation’s culture and the taken for-granted assumptions and ways of doing things are key drivers of strategy.
• Strategy is likely to build on and continue what has gone before.

Question 35

Make a short introduction to strategy as variety

Answer 35

• Strategy ‘emerges’ from an uncertain and changing environment.
• Strategy comes from a variety of initiatives.
• New ideas ‘bubble up’ from unpredictable sources and not just the top.
• Organisations need to encourage diversity and look for initiatives at the bottom or the periphery of the organisation.

Question 36

Make a short introduction to strategy as discourse

Answer 36

• Attention is focused on the way managers use language to frame strategic problems, make strategy proposals, debate issues and communicate strategic decisions.
• The way managers ‘talk’ about strategy matters – it influences decisions.
• The discourse lens helps to uncover the personal interests and ‘politicking’ of managers.