Slide 1.1
Introducing Strategy
Asad Ghalib
ghaliba@hope.ac.uk
Room 105
Liverpool Hope Business School
Ext: 3903
Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy Powerpoints on the Web, 10th edition ©Pearson Education Limited 2014
Learning outcomes
At the end of this lecture, you should be able to:
Summarise the strategy of an organisation in a
‘strategy statement’.
Distinguish between corporate, business and
operational strategies.
Identify key issues for an organisation’s strategy
according to the Exploring Strategy model.
Understand different people’s roles in strategy
work.
Definitions of strategy (1)
‘…the determination of the long-run goals and objectives
of an enterprise and the adoption of courses of action and
the allocation of resources 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
unique mix of value’
Michael Porter
a
Definitions of strategy (2)
‘… a pattern in a stream of decisions’
Henry Mintzberg
‘…the long-term direction of an organisation’
Exploring Strategy
Three horizons for strategy (1)
• Horizon 1:
Extend and defend core business.
• Horizon 2:
Build emerging businesses.
• Horizon 3:
Create viable options.
Three horizons for strategy (2)
Source: M. Baghai, S. Coley and D. White, The Alchemy of Growth, Texere Publishers, 2000. Figure 1.1, p. 5
Levels of strategy (2)
• Operational strategy is concerned with how different parts of
the organisation deliver the strategy in terms of managing
resources, processes and people.
• Business-level strategy is concerned with the way a
business seeks to compete successfully in its particular
market.
• Corporate-level strategy is concerned with the overall
scope of an organisation and how value is added to the
constituent business units.
Levels of strategy (1)...