,Part I – The Strategic Position.....................................................................................................3
1. Introducing Strategy...............................................................................................................3
2. Working with Strategy............................................................................................................5
3. Macro-environment Analysis.................................................................................................8
4. Industry and Sector Analysis................................................................................................13
5. Resources and Capabilities Analysis.....................................................................................17
6. Purpose and Stakeholders....................................................................................................21
7. Culture and Strategy.............................................................................................................25
Part II – Strategic Choices.........................................................................................................29
8. Business Strategy and Models..............................................................................................29
9. Corporate Strategy...............................................................................................................34
10. International Strategy.........................................................................................................38
11. Entrepreneurship and Innovation......................................................................................42
12. Mergers, Acquisitions and Alliances...................................................................................46
Part III – Strategy in Action.......................................................................................................52
13. Evaluating Strategies..........................................................................................................52
14. Strategy Development Processes.......................................................................................55
15. Implementing Strategy.......................................................................................................58
16. Leadership and Strategic Change.......................................................................................61
17. The Practice of Strategy......................................................................................................65
,Part I – The Strategic Position
1. Introducing Strategy
1.1 What is strategy?
Strategy is the long-term direction of an organisation. It concerns how an organisation creates value, achieves
its objectives and develops an advantageous position in its environment.
Strategy connects:
Purpose + environment + resources + capabilities + choices + action
Three central questions are:
Where are we now? → strategic position
Where do we want to go? → strategic choices
How will we get there? → strategy in action
1.2 Strategy as long-term direction
Strategy establishes an organisation's long-term direction and scope. It determines which activities, markets,
customers and capabilities receive attention.
Long-term direction does not imply rigid planning. Because environments change, effective strategies may
need continuous adaptation.
Strategic direction concerns:
organisational scope;
markets and customers;
products and services;
1.3 Strategy and strategic decisions
Strategic decisions shape the long-term development of an organisation and usually involve substantial
uncertainty and resource commitments.
They are characterised by:
long-term consequences;
significant resource allocation;
uncertainty and complexity;
1.4 Levels of strategy
Strategy exists at several interconnected levels.
Corporate strategy
Determines overall scope, diversification, industries, businesses and markets.
Business strategy
Determines how a particular business competes and achieves competitive advantage.
, Functional strategy
Translates business strategy into areas such as marketing, finance, operations and HR.
Operational strategy
Concerns detailed processes and day-to-day execution.
Alignment:
Corporate → business → functional → operational.
1.5 Strategy statements
A strategy statement communicates the organisation's strategic direction.
It should clarify:
1. Long-term direction – where the organisation is heading.
2. Scope – which activities, markets and customers are included.
3. Competitive advantage – how the organisation intends to succeed.
A strategy statement creates focus and guides organisational decisions.
1.6 Mission, vision and objectives
Mission describes the organisation's fundamental purpose.
Vision describes the desired future position.
Objectives translate strategic intentions into measurable or assessable outcomes.
The relationship can be represented as:
Purpose → mission/vision → objectives → strategy → action → performance
Objectives enable strategic control by providing standards against which performance can be assessed.
1.7 Strategic choices and strategic action
Strategy requires both choice and implementation.
Strategic choices may concern:
competitive positioning;
markets;
products and services;
Strategic action converts choices into resource allocation, organisational behaviour and implementation.
1.8 Strategy in different organisational contexts
Strategy depends on organisational context. Relevant factors include:
size and ownership;
industry and competition;
public or private purpose;
resources and capabilities;
1. Introducing Strategy...............................................................................................................3
2. Working with Strategy............................................................................................................5
3. Macro-environment Analysis.................................................................................................8
4. Industry and Sector Analysis................................................................................................13
5. Resources and Capabilities Analysis.....................................................................................17
6. Purpose and Stakeholders....................................................................................................21
7. Culture and Strategy.............................................................................................................25
Part II – Strategic Choices.........................................................................................................29
8. Business Strategy and Models..............................................................................................29
9. Corporate Strategy...............................................................................................................34
10. International Strategy.........................................................................................................38
11. Entrepreneurship and Innovation......................................................................................42
12. Mergers, Acquisitions and Alliances...................................................................................46
Part III – Strategy in Action.......................................................................................................52
13. Evaluating Strategies..........................................................................................................52
14. Strategy Development Processes.......................................................................................55
15. Implementing Strategy.......................................................................................................58
16. Leadership and Strategic Change.......................................................................................61
17. The Practice of Strategy......................................................................................................65
,Part I – The Strategic Position
1. Introducing Strategy
1.1 What is strategy?
Strategy is the long-term direction of an organisation. It concerns how an organisation creates value, achieves
its objectives and develops an advantageous position in its environment.
Strategy connects:
Purpose + environment + resources + capabilities + choices + action
Three central questions are:
Where are we now? → strategic position
Where do we want to go? → strategic choices
How will we get there? → strategy in action
1.2 Strategy as long-term direction
Strategy establishes an organisation's long-term direction and scope. It determines which activities, markets,
customers and capabilities receive attention.
Long-term direction does not imply rigid planning. Because environments change, effective strategies may
need continuous adaptation.
Strategic direction concerns:
organisational scope;
markets and customers;
products and services;
1.3 Strategy and strategic decisions
Strategic decisions shape the long-term development of an organisation and usually involve substantial
uncertainty and resource commitments.
They are characterised by:
long-term consequences;
significant resource allocation;
uncertainty and complexity;
1.4 Levels of strategy
Strategy exists at several interconnected levels.
Corporate strategy
Determines overall scope, diversification, industries, businesses and markets.
Business strategy
Determines how a particular business competes and achieves competitive advantage.
, Functional strategy
Translates business strategy into areas such as marketing, finance, operations and HR.
Operational strategy
Concerns detailed processes and day-to-day execution.
Alignment:
Corporate → business → functional → operational.
1.5 Strategy statements
A strategy statement communicates the organisation's strategic direction.
It should clarify:
1. Long-term direction – where the organisation is heading.
2. Scope – which activities, markets and customers are included.
3. Competitive advantage – how the organisation intends to succeed.
A strategy statement creates focus and guides organisational decisions.
1.6 Mission, vision and objectives
Mission describes the organisation's fundamental purpose.
Vision describes the desired future position.
Objectives translate strategic intentions into measurable or assessable outcomes.
The relationship can be represented as:
Purpose → mission/vision → objectives → strategy → action → performance
Objectives enable strategic control by providing standards against which performance can be assessed.
1.7 Strategic choices and strategic action
Strategy requires both choice and implementation.
Strategic choices may concern:
competitive positioning;
markets;
products and services;
Strategic action converts choices into resource allocation, organisational behaviour and implementation.
1.8 Strategy in different organisational contexts
Strategy depends on organisational context. Relevant factors include:
size and ownership;
industry and competition;
public or private purpose;
resources and capabilities;
