Lecture 1 (management)
Learning outcomes chapter 1
- Recognize the purpose of an organization
- Summarize the strategy of an organization in a strategy statement
- Distinguish between corporate, business and functional strategies
- Identify key issues for an organization’s strategy according to the
Exploring Strategy Framework
Strategy: a coherent mix of policy and action designed to surmount high-stakes
challenges design thinking
“The long-term direction of an organization”
o Can include both deliberate and incremental strategies
o Can include competition and cooperation
o 3 horizons
o Follow objectives OR an emerging coherent pattern
o Firms as discrete entities OR relates internal and external persons
and groups
Key obstacles to realise good strategy
- Can we assess strategies by the current results?
- Compromise (best/worst of both words)
o Lack of focus
o Competitive success vs corporate strategy
- The choice set is not known (induction problem)
Strategy statements: motivating statements summarizing goals, scope and
advantage. Ideally in max 35 words. They have 3 main themes/components:
1. The fundamental purpose/goals (mission, vision, mission, objectives) of
the organization
o The golden circle
, What: every organization on the planet knows WHAT to do.
These are products they sell or the services.
How: some organizations know HOW they do it. These are the
things that make them special or set them apart from their
competition
Why: very few organizations know WHY they do what they
do. WHY is not about making money, that’s a result. WHY is a
purpose, cause or belief. It’s the very reason your
organization exists
“the overriding/motivating purpose of the organization”
strategy statement
o Statement of objectives: statements of specific outcomes that
are to be achieved. Often financial, market-based, competitive
advantage, triple bottom line
2. The scope or domain of the organization’s activities. Refers to 3
dimensions
o Customers, who?
o Geographical location, where?
o Extend of internal activities, how much ourselves?
Vertical integration/specialisation
3. The particular advantages or capabilities it has to deliver all of these.
How the organization will achieve the objectives set regarding its chosen
scope
o Commercial competitive advantage
3 levels of strategy
- Corporate level: concerned with the overall scope of an organisation and
how value is added to the constituent business units
- Business level strategy: concerned with the way a business seeks to
compete successfully in its particular market competitive strategy
- Functional strategy: concerned with how different parts of the
organisation deliver the strategy effectively in terms of managing
resources, processes and people
Exploring strategy includes understanding the strategic position of the
organisation, assessing strategic choices for the future and managing
strategy in action iteratively/feedback loops
,Fundamental questions for strategic position:
- What are the macro-environmental opportunities and threats?
- How can the organisation manage industry forces?
- What resources and capabilities support the strategy?
- What is our purpose? How does culture fit the strategy?
Strategic choices: involve the options for strategy in terms of directions in
which strategy might move and the methods by which strategy might be
pursued.
Fundamental questions for strategic choices
- (Ch.6) What strategy and business model to compete?
o Competitive BU strategy
- (Ch.7) Which businesses to include in the portfolio?
o Corporate strategy
- (Ch.8) Is the organisation innovating appropriately?
o Leadership and innovation
Strategy in action: concerned with how chosen strategies are actually put into
practice
- Structuring an organisation as support
- Systems to control implementation
- Leadership for influencing efforts and
- Strategic change to align (all Ch. 9)
Lecture 2 (marketing)
“consumption is the sole end and purpose of all production”
“and the interest of the producer ought to be attended to only so far as it may be
necessary for promoting that of the consumer”
The marketing concept: the key to achieving organizational goals is being
more effective than competitors in creating, delivering and communicating
superior customer value to your target markets
, Business strategy vs marketing strategy: marketing strategy is lower in the
organization
Business strategy:
Marketing strategy:
Identifying competition
- Differentiation (what you do to an offering): creating tangible or
intangible differences on one or more attributes between a focal offering
and its main competitors
- Positioning: set of strategies a firm develops to differentiate its offering
in the minds of its target customers. Successful positioning will result in
the minds of the target customers
Learning outcomes chapter 1
- Recognize the purpose of an organization
- Summarize the strategy of an organization in a strategy statement
- Distinguish between corporate, business and functional strategies
- Identify key issues for an organization’s strategy according to the
Exploring Strategy Framework
Strategy: a coherent mix of policy and action designed to surmount high-stakes
challenges design thinking
“The long-term direction of an organization”
o Can include both deliberate and incremental strategies
o Can include competition and cooperation
o 3 horizons
o Follow objectives OR an emerging coherent pattern
o Firms as discrete entities OR relates internal and external persons
and groups
Key obstacles to realise good strategy
- Can we assess strategies by the current results?
- Compromise (best/worst of both words)
o Lack of focus
o Competitive success vs corporate strategy
- The choice set is not known (induction problem)
Strategy statements: motivating statements summarizing goals, scope and
advantage. Ideally in max 35 words. They have 3 main themes/components:
1. The fundamental purpose/goals (mission, vision, mission, objectives) of
the organization
o The golden circle
, What: every organization on the planet knows WHAT to do.
These are products they sell or the services.
How: some organizations know HOW they do it. These are the
things that make them special or set them apart from their
competition
Why: very few organizations know WHY they do what they
do. WHY is not about making money, that’s a result. WHY is a
purpose, cause or belief. It’s the very reason your
organization exists
“the overriding/motivating purpose of the organization”
strategy statement
o Statement of objectives: statements of specific outcomes that
are to be achieved. Often financial, market-based, competitive
advantage, triple bottom line
2. The scope or domain of the organization’s activities. Refers to 3
dimensions
o Customers, who?
o Geographical location, where?
o Extend of internal activities, how much ourselves?
Vertical integration/specialisation
3. The particular advantages or capabilities it has to deliver all of these.
How the organization will achieve the objectives set regarding its chosen
scope
o Commercial competitive advantage
3 levels of strategy
- Corporate level: concerned with the overall scope of an organisation and
how value is added to the constituent business units
- Business level strategy: concerned with the way a business seeks to
compete successfully in its particular market competitive strategy
- Functional strategy: concerned with how different parts of the
organisation deliver the strategy effectively in terms of managing
resources, processes and people
Exploring strategy includes understanding the strategic position of the
organisation, assessing strategic choices for the future and managing
strategy in action iteratively/feedback loops
,Fundamental questions for strategic position:
- What are the macro-environmental opportunities and threats?
- How can the organisation manage industry forces?
- What resources and capabilities support the strategy?
- What is our purpose? How does culture fit the strategy?
Strategic choices: involve the options for strategy in terms of directions in
which strategy might move and the methods by which strategy might be
pursued.
Fundamental questions for strategic choices
- (Ch.6) What strategy and business model to compete?
o Competitive BU strategy
- (Ch.7) Which businesses to include in the portfolio?
o Corporate strategy
- (Ch.8) Is the organisation innovating appropriately?
o Leadership and innovation
Strategy in action: concerned with how chosen strategies are actually put into
practice
- Structuring an organisation as support
- Systems to control implementation
- Leadership for influencing efforts and
- Strategic change to align (all Ch. 9)
Lecture 2 (marketing)
“consumption is the sole end and purpose of all production”
“and the interest of the producer ought to be attended to only so far as it may be
necessary for promoting that of the consumer”
The marketing concept: the key to achieving organizational goals is being
more effective than competitors in creating, delivering and communicating
superior customer value to your target markets
, Business strategy vs marketing strategy: marketing strategy is lower in the
organization
Business strategy:
Marketing strategy:
Identifying competition
- Differentiation (what you do to an offering): creating tangible or
intangible differences on one or more attributes between a focal offering
and its main competitors
- Positioning: set of strategies a firm develops to differentiate its offering
in the minds of its target customers. Successful positioning will result in
the minds of the target customers
