MNG4801 – STRATEGIC MANAGEMENT
TOPIC 1: TOPIC 2: TOPIC 3: TOPIC 4: TOPIC 5:
DEVELOPMENT OF BUILDING BLOCKS THE BUILDING BUILDING BLOCKS DEVELOPING A
STRATEGIC OF STRATEGIC BLOCKS OF OF STRATEGIC STRATEGIC
MANAGEMENT AS PLANNING STRATEGY CONTROL MANAGEMENT
IMPLEMENTATION PLAN
A MANAGEMENT
APPROACH
Study unit 1.1 Study unit 2.1 Study unit 3.1 Study unit 4.1 Study unit 5.1
Development of Strategic Direction Strategy Strategic Control Developing a
Strategic Implementation Methodologies and Strategic
Management as a Approaches Management plan
Management
Approach
Study unit 1.2 Study unit 2.2 Study unit 3.2
Importance of Internal Short-term Objectives,
Strategic Environmental Functional Tactics and
Management Analysis Policies
Study unit 1.3 Study unit 2.3 Study unit 3.3
Strategic External Leadership
Management Environmental
Terminology Analysis
Study unit 1.4 Study unit 2.4 Study unit 3.4
Contemporary Strategy Selection Organisational Culture
Business
Environment
Study unit 3.5
Reward Systems
Study unit 3.6
Resource Allocation
Study unit 3.7
Organisational
Architecture, Systems
and Processes
Page 1 of 49
,TOPIC 1: DEVELOPMENT OF STRATEGIC MANAGEMENT AS A MANAGEMENT
APPROACH.
STUDY UNIT 1.1 DEVELOPMENT OF STRATEGIC MANAGEMENT AS A MANAGEMENT
APPROACH
1. Development of Strategic Management over the years.
• Definition:
(1) a plan designed to achieve a particular long-term aim,
(2) the art of planning and directing military activity in a war or a battle.
• Original meaning to lead the army – military or political connection.
• Until 20th century a way of thinking about survival and of achieving success through
leadership, mostly in war and sometimes politics.
• Late 19th century – Industrial Revolution – required little strategy.
• New type of organisation – invested in manufacturing and marketing – had management
hierarchies to coordinate functions.
• First need for strategic thinking
2. From business policy to classical planning school.
• 1950 Strategic Management taught in Harvard Business School
• All organisations should have a clearly defined set of goals to keep moving in a deliberate
chosen direction and preventing it from drifting in undesired directions.
• 1960s – Focussed on matching the organisations strengths and weaknesses
(distinctive competencies) with opportunities and threads in the marketplace.
• The idea of competitive thinking immerged.
• Four categories of common thread in a business – product/ mission matrix and growth vectors.
• Strategic planning introduced by Chandler in the allocation of resources in achieving the long
• term goals.
• Classical School – Strategy is a deliberate, rational process where organisations were efficient
and rational resource-allocating mechanisms.
• 1970s – strategy-as-planning also called classical planning school
Page 2 of 49
, STUDY UNIT 1.2 IMPORTANCE OF STRATEGIC MANAGEMENT
Strategic Management is a management approach.
1. WHAT STRATEGIC MANAGEMENT ENCOMPASSES?
a) DIFFERENT VIEWS OF STRATEGY
• Strategy as a plan: overall direction and course of action for the organisation.
• Strategy as a position: The way the organisation position itself in the market and the industry.
• Strategy as a perspective: How Organisations themselves are doing things and how
strategies emerge over time as past strategies serves as a foundation which is then adapted.
• Strategy as a ploy: Outwitting a competitor – a game where several moves are made to win
the game.
• Strategy as a pattern: Consistent behaviour over time
b) DIFFERENT LEVELS OF STRATEGY
CORPORATE LEVEL STRATEGY
• Organisational perspective
• Overall purpose and scope, range and diversity of an organisation.
• Addresses the question how value can be added at all business levels and lines.
• Responsibility of Senior Managers. Usually reviewed and approved by board of directors.
• Includes the questions:
1) purpose of organisation
2) type of business
3) overall direction for the future
4) leadership style and organisational culture and
5) attitude towards strategic change.
BUSINESS OR COMPETITIVE STRATEGIES
• Relates to how the organisation competes and attains a competitive advantage in each area of
the business that may be through products, or services or development of markets and the
creation of value for customers. (Strategic perspective)
• The link between internal capabilities and external relationships is important.
• Orchestrated by the general manager of each line of business, which advice and input from
the heads of functional areas in each line of the business.
• Includes questions:
1) what is our sustainable competitive advantage
2) what value do we add
3) what markets should we compete in
4) competencies and capabilities needed
5) who are our customers
6) how can we innovate
FUNCTIONAL LEVEL STRATEGIES
• Includes operational level strategies. Perspective is at activities, processes, practices
and resources.
• Underpins the business level strategy by implementing business strategies through the
functional areas such as marketing and HR.
• Primary role is to support the overall business strategy and competitive approach by
performing strategy-critical activities.
• Crafted by the heads of functional sections with the involvement of key employees.
• Include questions:
1) what is the role of the department or function in delivering the business level strategy
2) how strategy is implemented and coordinated at functional levels
3) does the organisational architecture support strategy implementation
Page 3 of 49
TOPIC 1: TOPIC 2: TOPIC 3: TOPIC 4: TOPIC 5:
DEVELOPMENT OF BUILDING BLOCKS THE BUILDING BUILDING BLOCKS DEVELOPING A
STRATEGIC OF STRATEGIC BLOCKS OF OF STRATEGIC STRATEGIC
MANAGEMENT AS PLANNING STRATEGY CONTROL MANAGEMENT
IMPLEMENTATION PLAN
A MANAGEMENT
APPROACH
Study unit 1.1 Study unit 2.1 Study unit 3.1 Study unit 4.1 Study unit 5.1
Development of Strategic Direction Strategy Strategic Control Developing a
Strategic Implementation Methodologies and Strategic
Management as a Approaches Management plan
Management
Approach
Study unit 1.2 Study unit 2.2 Study unit 3.2
Importance of Internal Short-term Objectives,
Strategic Environmental Functional Tactics and
Management Analysis Policies
Study unit 1.3 Study unit 2.3 Study unit 3.3
Strategic External Leadership
Management Environmental
Terminology Analysis
Study unit 1.4 Study unit 2.4 Study unit 3.4
Contemporary Strategy Selection Organisational Culture
Business
Environment
Study unit 3.5
Reward Systems
Study unit 3.6
Resource Allocation
Study unit 3.7
Organisational
Architecture, Systems
and Processes
Page 1 of 49
,TOPIC 1: DEVELOPMENT OF STRATEGIC MANAGEMENT AS A MANAGEMENT
APPROACH.
STUDY UNIT 1.1 DEVELOPMENT OF STRATEGIC MANAGEMENT AS A MANAGEMENT
APPROACH
1. Development of Strategic Management over the years.
• Definition:
(1) a plan designed to achieve a particular long-term aim,
(2) the art of planning and directing military activity in a war or a battle.
• Original meaning to lead the army – military or political connection.
• Until 20th century a way of thinking about survival and of achieving success through
leadership, mostly in war and sometimes politics.
• Late 19th century – Industrial Revolution – required little strategy.
• New type of organisation – invested in manufacturing and marketing – had management
hierarchies to coordinate functions.
• First need for strategic thinking
2. From business policy to classical planning school.
• 1950 Strategic Management taught in Harvard Business School
• All organisations should have a clearly defined set of goals to keep moving in a deliberate
chosen direction and preventing it from drifting in undesired directions.
• 1960s – Focussed on matching the organisations strengths and weaknesses
(distinctive competencies) with opportunities and threads in the marketplace.
• The idea of competitive thinking immerged.
• Four categories of common thread in a business – product/ mission matrix and growth vectors.
• Strategic planning introduced by Chandler in the allocation of resources in achieving the long
• term goals.
• Classical School – Strategy is a deliberate, rational process where organisations were efficient
and rational resource-allocating mechanisms.
• 1970s – strategy-as-planning also called classical planning school
Page 2 of 49
, STUDY UNIT 1.2 IMPORTANCE OF STRATEGIC MANAGEMENT
Strategic Management is a management approach.
1. WHAT STRATEGIC MANAGEMENT ENCOMPASSES?
a) DIFFERENT VIEWS OF STRATEGY
• Strategy as a plan: overall direction and course of action for the organisation.
• Strategy as a position: The way the organisation position itself in the market and the industry.
• Strategy as a perspective: How Organisations themselves are doing things and how
strategies emerge over time as past strategies serves as a foundation which is then adapted.
• Strategy as a ploy: Outwitting a competitor – a game where several moves are made to win
the game.
• Strategy as a pattern: Consistent behaviour over time
b) DIFFERENT LEVELS OF STRATEGY
CORPORATE LEVEL STRATEGY
• Organisational perspective
• Overall purpose and scope, range and diversity of an organisation.
• Addresses the question how value can be added at all business levels and lines.
• Responsibility of Senior Managers. Usually reviewed and approved by board of directors.
• Includes the questions:
1) purpose of organisation
2) type of business
3) overall direction for the future
4) leadership style and organisational culture and
5) attitude towards strategic change.
BUSINESS OR COMPETITIVE STRATEGIES
• Relates to how the organisation competes and attains a competitive advantage in each area of
the business that may be through products, or services or development of markets and the
creation of value for customers. (Strategic perspective)
• The link between internal capabilities and external relationships is important.
• Orchestrated by the general manager of each line of business, which advice and input from
the heads of functional areas in each line of the business.
• Includes questions:
1) what is our sustainable competitive advantage
2) what value do we add
3) what markets should we compete in
4) competencies and capabilities needed
5) who are our customers
6) how can we innovate
FUNCTIONAL LEVEL STRATEGIES
• Includes operational level strategies. Perspective is at activities, processes, practices
and resources.
• Underpins the business level strategy by implementing business strategies through the
functional areas such as marketing and HR.
• Primary role is to support the overall business strategy and competitive approach by
performing strategy-critical activities.
• Crafted by the heads of functional sections with the involvement of key employees.
• Include questions:
1) what is the role of the department or function in delivering the business level strategy
2) how strategy is implemented and coordinated at functional levels
3) does the organisational architecture support strategy implementation
Page 3 of 49
