Strategy: Choices and Change

MN6003

Session 2
What is Strategy?

Strategy Theme: What is strategy?

Session 2 – What is Strategy

Today’s Objectives
• Re-cap on last week
• Understand what the term ‘strategy’ means

Weekly Reading
• Chapter 1 of Johnson et al. Exploring Strategy
 Re-cap of session 1 (Module Intro)

What did we talk

about last week?

Did everyone manage

to make a test
Personal Journal
entry?

Image source: http://www.articulate.com/rapid-elearning/how-to-get-your-learners-to-remember-more/

Strategy – a military term
• Strategy or stratagem is
derived from the Greek
word "strategos"
• "Stratos" meant "army"
• "Agein" meant "to lead"
• Reflected the increasing
complexity of military image: wwww.olive-drab.com

decision making

source: De Wit & Meyer, 2004, Strategy: Process, Content, Context, ed3, p24
Strategy - how to outsmart, outmanoeuvre and
outperform your rivals

“This is the art of offensive strategy;

when our forces are ten to the
enemy’s one, to surround him;
when five to one, to attack him; if
double his strength, to divide him…
if equally matched, you may
engage him; if weaker numerically,
be capable of withdrawing; if quite
unequal in every way, be capable of
eluding him”

Sun Tzu: The Art of War c500BC,

cited page 14 in Wren, D (2005) The History of Management Thought, 5th Ed, Wiley
 Definitions of Strategy
“In strategy it is
important to see distant
things as if they were
close and to take a
distanced view of close
things.”

Miyamoto Musashi (1584-1645)

Japanese Samurai and Strategist
Definitions of Strategy
"The art of war, especially the
planning of movement and of
troops and ships etc into
favourable positions; plan of
action or policy in business or
politics"
Oxford Pocket Dictionary in Grant, Contemporary Strategy Analysis, p15
Classic Definitions of Business Strategy
1. ‘...the determination of the long-run 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 Chandler
2. ‘Competitive strategy is about being different. It means
deliberately choosing a different set of activities to deliver
a unique mix of value’
Michael Porter
3. ‘..a pattern in a stream of decisions’ Henry Mintzberg
4. ‘..the long-term direction of an organisation’
Johnson, Whittington and Scholes
Q: Which of these 4 ‘classic’ definitions do you think makes most
sense today in 2020?
source: Johnson, Whittington and Scholes (2011) Exploring Strategy, 9th Edition, Pearson, Chp 1
Original Sources:
A.D. Chandler, Strategy and Structure: Chapters in the History of American Enterprise, MIT Press, 1963, p. 13
M.E. Porter, ‘What is strategy?’, Harvard Business Review, 1996, November–December, p. 60
H. Mintzberg, Tracking Strategy: Toward a General Theory, Oxford University Press, 2007, p. 3
Johnson Whittington and Scholes (2011) Exploring Strategy, 9 th Edition
Strategy: Choices and change
Much of strategy is about making decisions (strategic choices), and ensuring those
decisions are implemented effectively (strategic change)

source: Johnson, Whittington and Scholes (2013) Exploring Strategy, 10 th Edition, Pearson Education, Chapter 1
Why is Strategic Management Important?
Because it deals with the fundamental issues that affect the
future of the organisation

Strategic management...
1. involves the entire organisation
2. is likely to concern itself with the survival of the
organisation as a minimum objective
3. and the creation of value added as a maximum objective

Q: When might ‘survival’ be a valid strategy? Can you think of

any examples from real world situations or organisations?

source: Lynch, R (2011) Strategic Management, 6th Edition, Pearson Education, Chapter 1
Three Core Areas of Strategic Management

Strategic Analysis
– Environment
– Resources
– Vision, mission and objectives

Strategic Development
– Options
– Rational selection between options
– Finding the strategic route forward

Strategy Implementation
– Resource allocation
– Strategic planning and control
– People issues and strategic change

source: Lynch, R (2011) Strategic Management, 6th Edition, Pearson Education, Chapter 1
Strategy’s three branches

source: Johnson, Whittington and Scholes (2013) Exploring Strategy, 10 th Edition, Pearson Education, Chapter 1
Three Levels of Strategy
1. Corporate-Level Strategy is concerned with the overall purpose
and scope of an organisation and how to add value to business
units.

2. Business-Level Strategy is concerned with the way a business

seeks to compete successfully in its particular market.

3. Operational Level Strategy is concerned with how different

parts of the organisation deliver the strategy in terms of
managing resources, processes and people.

Q: Give a detailed example of each these levels for an organisation

you are familiar with or have studied before

source: Johnson, Whittington and Scholes (2013) Exploring Strategy, 10 th Edition, Pearson Education, Chapter 1
Exploring strategy in different contexts

Business Strategy models and theories can apply

to many different types of organisations

• Small Businesses
• Multinational Corporations
• Public Sector Organisations
• Not For Profit Organisations