Business Strategy (MOD003337) Level 6

Week 1A: Introducing 'Strategy’

Module Lecturer
(Benjamin Taiwo)
Benjamin.Taiwo@London.aru.ac.uk
Lecturer’s Background

Benjamin Taiwo:

Business Strategist & Business Growth Consultant

Business Start-up & Employability Advisor
Session’s Focus

This week’s session will focus on the following:

What Strategy Is
Strategy in an Organisational Context (Example of a
‘Strategy Statement’)
Terminologies used in Strategy
Relevance of Organisational Strategy
Module Assignment Brief
Employability Elements of Session

Manager’s demonstrable understanding of:

• The subject of Strategy
• Why Strategy is relevant to organization
• Key terminologies related to organizational strategy
 VLE Contents
It is important that you visit the module page on VLE
to access all important documents and other vital
information, including:
Module Information
Strategy Game – Players Guide 2020
Assessment Brief
Session-related materials such as Videos, announcements,
etc.
The Meaning of Strategy
‘..the determination of the long-term goals and objectives of
an enterprise and the adoption of courses of action and
the allocation of resource necessary for carrying out
these goals’
- Alfred D. Chandler (1962)

‘..the long-term direction of an organisation’

- Gerry Johnson & Kevan Scholes (2001)
Organisational Strategy
‘…is the direction and scope of an organisation over the long term
to achieves advantage in a changing environment through its use
of resources and competences, with the aim of fulfilling
stakeholder expectations.
- Johnson et al (2015)

Organisational Strategy is therefore the long-term goal

of an organisation, having considered its available
tangible and intangible resources, and analysed its
business environments.
Some Strategy Terminologies
Mision – Why an organisation exists.
Vision – Goals an organisation wants to achieve over a period of time.
Strategic Objectives – Actions taken towards achieving organisational
goals.
Strategic Alignment – The operations of an organisation which are planned
in line with factors around the organisation’s business.
Strategic Drift – The operations of an organisation which are planned
without consideration of factors around the organisation’s business.
Strategic Environments – Various factors which can affect and also
determine the success or failure of an organisation.
Strategic Management – Decision-making of senior managers about the
future of the organisation, with awareness of its strategic environments.
Strategic Position – Impact on organisational strategy of its strategic
environments.
Strategic Choice – the focus of an organisation as it determines its long-
term goals.
Strategy Statements
Most organisations have what is referred to as
‘Strategy Statement’ or ‘Vision Statement’
Strategy statements should have four main elements:
The fundamental goals that the organisation seeks, which reflect the
stated mission, vision and objectives;
The scope and scale of the organisation’s activities, which may highlight
volume or numbers;
A planned timeframe for delivering the goals
Any advantages or capabilities that will be realised as a result of
delivering the goals.
Examples of Strategic Statements
“Our vision to be the most desired and successful transport solution
provider in the world” – The Volvo Group

“to offer a wide range of well-designed, functional home furnishing

products at prices so low that as many people as possible will be able to
afford them” – Ikea

“Our vision is a just world without poverty. We want a world where people
are valued and treated equally, enjoy their rights as full citizens, and can
influence decisions affecting their lives” – Oxfam

“to be Earth’s most customer-centric company, where customers can find

and discover anything they might want to buy online, and endeavors to
offer its customers the lowest possible prices” - Amazon
Three Levels of Strategy
Corporate-level Strategy
Concerned with the overall scope of an organization
and how value is added to the constituent business units
- usually dictating ‘what’ an organisational strategy will be

Business-level Strategy
Concerned with how a business seeks to compete in
its successfully in its particular market
– usually focusing on the ‘how’ of strategy

Functional-level Strategy
Concerned with how different units of the organization delivers
operations of strategy
Group/Breakout Discussion (10mins)

In your group, discuss:

Why Strategy is important to business
Agree 1 person who will summarise the discussions
when you return to the main group.
Relevance of Organisational Strategy
Acts as ‘eye’ for the Organisation – as it is crucial to analyse the 3
environments of business before formulating strategy, strategy
become an opportunity for the organisation to see internally as well
as externally.
It is the ‘roadmap’ of Business – it often contains set plan of
actions which are referred to as ‘strategic objectives’.
Resource Management – it helps managers to allocate available
resources and plan how to source for more if required.
Competitiveness – Strategy is the tool that enables organisations
to differentiate themselves from others in order to attract customers
Sustainability – By nature strategy implies long-term, meaning it
enhances long term existence of business.
Description/Analysis/Evaluation
Throughout this module, you will be required to
engage in your discussions in a manner
appropriate for Level 6 – i.e. Critical & Analytical
rather than merely descriptive.

This quality is also expected to be reflected in

your assignment.

See the ‘Describe Analyse Evaluate’ document

on VLE.
Break (15mins)
Please return to the session in 15minutes

If on Zoom, please ensure that you mute

your microphone / turn off your video
Module Assessment
This Module is assessed in two parts – 010
& 11
Assignment 010 is a simulation game on
Strategy - detail to be explained.
Assignment 011 is a reflective business
report.
About Assignment 010 – Simulation
• Known as the Business Strategy Game (BSG)
• Group activity in which everyone must participate
• Weighting is 50% of total grades
• Scores known as ‘Investor Expectation Score’, are determined by
group performance, and constitutes assessment grades.
• The overall group grade for this assignment is automatically
generated by the BSG itself, based on participation, decision-
making skills and performance.
• A demonstration will be had in session 2 of the week.

You must refer to your module information and assignment brief

for the detail of this assignment.
About Assignment 011 – Reflective Report
• A reflective business report of your experience on and outcome of
the BSG.
• Individually written and submitted.
• Weighting is 50% of total grades
• Participating in the BSG is pre-requisite to completing this report
• Your applicable knowledge of key learning had during the lectures
will be assessed

You must refer to your module information and assignment brief

for the detail of this assignment.
This week part B - Detailed explanation of
the Business Strategy Game

Next week part A – Analysing & Understanding

Business Environments
Any Questions?
Bibliography
•De Wit R and Meyer R (2010). Strategy Synthesis (3rd Edition). Thomson
•Hitt MA, Ireland RD and Hoskisson RE (2009). Management of
strategy: Concepts and cases, (8th Edition). Thomson South-Western
•Johnson G, Whittington R, Scholes K, Angwin D and Regner P (2017).
Exploring strategy-Text and Cases (11th edition). Harlow, UK: Pearson
Education Ltd
•Meyer R (2007). Mapping the Mind of the Strategist-A Quantitative
Methodology for Measuring the Strategic Beliefs of Executives. Erasmus
Research Institute of Management (ERIM)
•Swayne LE, Duncan WJ and Ginter PM (2006). Strategic Management of
Health Care Organizations (5th edition). Blackwell Publishing