TUTORIAL WEEK 2

NATURE OF STRATEGY and CORPORATE

PURPOSE
Part 1
ORGANISATIONAL STRATEGY
WEEK IN REVIEW

1. Three horizons
2. Competitive advantage
3. The value paradox
4. Stakeholder mapping
5. Corporate Social Responsibility
McKinsey Three Horizons
 Competitive advantage

• The ultimate objective of the strategic management process is to enable a firm

to choose and implement a strategy that generates a competitive advantage.
• A firm has a competitive advantage when it is able to create more economic
value than rival firms.
• Economic value is simply the difference between the perceived benefits gained
by a customer that purchases a firm’s products or services and the full
economic cost of these products or services.

Barney & Hesterly

(2014, 31)
The value paradox – comparison
Stakeholder mapping
Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR)
Part 2
EXERCISE
Glastonbury
Music Festival
 Glastonbury
Read the case study. Discuss in class or in pairs/groups:
• What strategy statement would you propose for the Glastonbury Festival?
• Carry out a‘three horizons’(refer to chapter 1 of the core textbook) analysis of
CASE the Glastonbury Festival, in terms of both existing activities and possible
future ones. How might this analysis affect their future strategic direction?

STUDY • Using the headings of environment, strategic capability, strategic purpose and
culture seen in Chapter 1, identify key positioning issues for the Glastonbury
Festival and consider their relative importance.
• Like many areas of entertainment, music festivals can appear an attractive
prospect to those with a passion for that specific entertainment form. How
would you define this sector and its attractiveness?
• What alternative strategies do you see for the Glastonbury Festival?
• Converting good strategic thinking into action can be a challenge: evaluate the
strategic options from Q5 and identify not only the outcomes but also the
obstacles that might restrict their achievement.
Part 3
ASSESSMENT CLINIC
 • You are required to undertake a critical strategic analysis of an organisation
and produce a written report outlining your findings and an assessment of
their implications.

• You will be provided with four case studies. You must choose ONE of
these to explore in your assignment

• You therefore have lots of time to explore these in detail. Read them.
Bring them to lectures. Write on them – relate lecture content to the case.
ASSESSMEN Use your time – do not leave everything until the last minute.

T BRIEF
• Submission deadline: 9pm UK time on Friday 5th January 2024
ASSESSMEN
T BRIEF
 Executive Summary (no more than 150 words. Not included in word
count)
Contents page (not included in word count)
1. Introduction and corporate purpose (200 words)
2. Organisational structure, corporate strategy, identify SBU
where appropriate (300 words)
3. External analysis of the industry. You MUST use Porter’s Five

ASSESSMEN
Forces (1000 words)
4. Internal analysis of the organisation or an SBU (1000 words). You
MUST use EITHER:

T BRIEF • VRIO, or
• Value Chain plus Porter’s Generic Strategies, or
• Value Chain plus Bowman’s Clock
5. Internationalisation of the organisation or an SBU (500 words)
6. Strategic plan for the organisation, with future suggestions. This
will involve evaluation, conclusion, and recommendations (2000
words). You MUST use EITHER Rumelt or SAFe to structure
your evaluation.
Appendices (not included in word count. These are not normally
necessary, but if you are going to include them, use them sparingly)
 In groups, pick a case study from the list

• What is the company for? Why does it exist? (Build on your thinking

TASK from last week)

• Conduct a stakeholder mapping exercise on your chosen company,
paying particular attention to your placing on the power/interest matrix

• Feed back to the class

 Lecture = External Environment
Tutorial = Corporate Strategy: Growth (Mergers,
Acquisitions, Joint Ventures, Strategic Alliances,
NEXT WEEK Organic Growth)

Don't forget to go through the lecture materials and

look at Yin & Shanley (2008) before the tutorials 