Introduction To Strategy

Question 1

Strategy

Answer 1

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 (Johnson et al., 2006).

Question 2

Levels of strategic decision making

Answer 2

Strategic Level - Corporate Strategy
Tactical Level - Business level Strategy
Operational Level - Operational Strategy
(Evans et al., 2003)

Strategic Level: Long term, complex, based on uncertain information, made by senior management, affect the whole organisation
Tactical Level: Medium term, semi-complex, some uncertainty, how the corporate objectives will be met and strategies implemented
Operational Level: Shorter term objectives, not complex, based on certainty, dependent on higher strategy

Question 3

Why have a strategy?

Answer 3

• Organisations may suffer strategic drift - a lack of focus and direction.
• Turbulent environments - the environment changes
• Organisational fragmentation - functional areas/departments may have their own agendas
• Thomas Cook case - struggling due to intense competition, scheduled flights, political problems at destinations etc.*

Question 4

Strategic Interference

Answer 4

The impact that one organisation’s strategy has on another’s.

• Interaction between strategies of different organisations, eg cross channel transport options
• Some organisations may have incompatible missions which may cause deliberate strategic interference, eg pressure groups
• An individual strategy may run counter to the national strategy, eg expansion of aviation

Question 5

Four main approaches to strategy

Answer 5

1. Classical Approach
   - Delibrate, traditional view of rational decision making, good leadership, profit maximisation
2. Evolutionary Approach
   - Strategy emerges through competitive conditions
3. Processual Approach
   - Humans constrained by knowledge, satisfactory, relevant to complex, bureaucratic organisations
4. Systemic Approach
   - Strategy which fits its context and dictated by the organisational culture, recognises that the workforce are not robots

Question 6

Corporate strategy in aviation

Answer 6

Internally-focused
-Profit focuses etc

Externally-focused
-Designed to influence the strategies of others (NGOs etc)

Question 7

Four key elements of strategic planning (Tribe, 1997)

Answer 7

1. The vision/mission
2. Strategic analysis
3. Strategic choice
4. Strategic implementation