lOMoARcPSD|11911780
Strategy and organisation
Topic 1 Introducing strategy
The three horizons for strategy (p. 4)
• Horizon 1 > extend and defend core business
• Horizon 2 > build emerging business
• Horizon 3 > create viable options
Levels of strategy (p. 7)
- Corporate-level strategy is concerned with the overall scope of an organisation and
how value is added to the constituent businesses of the organisational whole
- Business-level strategy is about how individual businesses should compete in
their particular markets
- Operational strategies are concerned with how the components of an
organisation deliver effectively the corporate- and business-level strategies in
terms of resources, processes and people
Strategy statements (p. 8)
- Mission
- Vision
- Objectives
- Scope
- Advantage
Strategic position (p. 11)
• Environment
• Strategic capability
• Strategic purpose
• Culture
Strategic choices (p. 12)
- Business strategy
- Corporate strategy and diversification
- International strategy
- Innovation and entrepreneurship
- Acquisitions and alliances
Strategy in action (p.13)
- Strategy performance and evaluation
- Strategy development processes
- Organising
- Leadership and strategic change
- Strategy practice
Strategy’s three branches (p.18)
o Strategy context
o Strategy content
o Strategy process
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Three organisational contexts (p. 20)
Small businesses
Multinational corporations
Public sector and not-for-profits
Strategy lenses > are ways of looking at strategy issues differently in order to generate
additional insights.
Four strategy lenses (p. 21)
- Strategy as design
- Strategy as experience
- Strategy as variety
- Strategy as discourse
Topic 2 The Environment
Layers of the business environment (p. 35)
- The macro-environment
- Industry or sector
- Competitors and markets
Macro environment - PESTEL framework (p. 36)
• Politics
• Economics
• Social
• Technological
• Ecological
• Legal
Three concepts of change (p. 39)
Megatrends
Inflexion points
Weak signals
Scenario analyses (p. 40)
o Defining scenario scope
o Identifying the key drivers for change
o Developing scenario “stories”
o Identifying impacts
o Establishing early warning systems
o Establishing early warning systems
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Industries and sectors – competitive forces
The Five Forces Framework (p. 43)
Threat of entry
Threat of substitutes
Power of buyers
Power of suppliers
Extent of rivalry between competitors
Competitive rivalry (p. 44)
• Competitor balance
• Industry growth rate
• High fixed costs
• High exit barriers
• Low differentiation
Threat of entry (p. 46)
- Scale and experience
- Access to supply or distribution channels
- Expected retaliation
- Legislation or government action
- Differentiation
Treat of substitutes (p. 47)
- Price/performance ratio
- Extra-industry effects
Power of buyers (p. 47)
o Concentrated buyers
o Low switching costs
o Buyer competition threat
Power of Suppliers (p. 48)
Concentrated suppliers
High switching costs
Supplier competition threat
Types of industry (p. 49)
- Monopolistic industries
- Oligopolistic industries
- Hypercompetitive industries
- Perfectly competitive industries
Strategy and organisation
Topic 1 Introducing strategy
The three horizons for strategy (p. 4)
• Horizon 1 > extend and defend core business
• Horizon 2 > build emerging business
• Horizon 3 > create viable options
Levels of strategy (p. 7)
- Corporate-level strategy is concerned with the overall scope of an organisation and
how value is added to the constituent businesses of the organisational whole
- Business-level strategy is about how individual businesses should compete in
their particular markets
- Operational strategies are concerned with how the components of an
organisation deliver effectively the corporate- and business-level strategies in
terms of resources, processes and people
Strategy statements (p. 8)
- Mission
- Vision
- Objectives
- Scope
- Advantage
Strategic position (p. 11)
• Environment
• Strategic capability
• Strategic purpose
• Culture
Strategic choices (p. 12)
- Business strategy
- Corporate strategy and diversification
- International strategy
- Innovation and entrepreneurship
- Acquisitions and alliances
Strategy in action (p.13)
- Strategy performance and evaluation
- Strategy development processes
- Organising
- Leadership and strategic change
- Strategy practice
Strategy’s three branches (p.18)
o Strategy context
o Strategy content
o Strategy process
, lOMoARcPSD|11911780
Three organisational contexts (p. 20)
Small businesses
Multinational corporations
Public sector and not-for-profits
Strategy lenses > are ways of looking at strategy issues differently in order to generate
additional insights.
Four strategy lenses (p. 21)
- Strategy as design
- Strategy as experience
- Strategy as variety
- Strategy as discourse
Topic 2 The Environment
Layers of the business environment (p. 35)
- The macro-environment
- Industry or sector
- Competitors and markets
Macro environment - PESTEL framework (p. 36)
• Politics
• Economics
• Social
• Technological
• Ecological
• Legal
Three concepts of change (p. 39)
Megatrends
Inflexion points
Weak signals
Scenario analyses (p. 40)
o Defining scenario scope
o Identifying the key drivers for change
o Developing scenario “stories”
o Identifying impacts
o Establishing early warning systems
o Establishing early warning systems
, lOMoARcPSD|11911780
Industries and sectors – competitive forces
The Five Forces Framework (p. 43)
Threat of entry
Threat of substitutes
Power of buyers
Power of suppliers
Extent of rivalry between competitors
Competitive rivalry (p. 44)
• Competitor balance
• Industry growth rate
• High fixed costs
• High exit barriers
• Low differentiation
Threat of entry (p. 46)
- Scale and experience
- Access to supply or distribution channels
- Expected retaliation
- Legislation or government action
- Differentiation
Treat of substitutes (p. 47)
- Price/performance ratio
- Extra-industry effects
Power of buyers (p. 47)
o Concentrated buyers
o Low switching costs
o Buyer competition threat
Power of Suppliers (p. 48)
Concentrated suppliers
High switching costs
Supplier competition threat
Types of industry (p. 49)
- Monopolistic industries
- Oligopolistic industries
- Hypercompetitive industries
- Perfectly competitive industries
