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B3132 EXPLORING STRATEGY
Lecture 1: An Introduction to Strategy
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Teaching Team
• Theresa Cronin, Lecturer & Transnational Partnership Manager,
[email protected] A Brief History of Me
• Scottish Chinese or Chinese Scot or
British Born Chinese (BBC)
• The learning bug: BA, MBA, MSc,
PhD (Edinburgh)
• Former finance manager
• Lecturer at York, Newcastle,
Coventry, Napier, Heriot-Watt,
Aberdeen universities
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Timetable
• Please check your timetable frequently for updates
• One lecture per week
• One 2-hour seminar per week
• See lecture and seminar schedule in Hub
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Week Lecture
2 L1: What is strategy? (DL)
3 L2: The Environment (DL)
4 L3: Strategic Capabilities (DL)
5 L4: Strategic Purpose (DL)
6 L5: Academic Development (BC)
7 L6: Business Strategy (DL)
8 L7: Corporate Strategy and Diversification (TC)
9 L8: International Strategy (TC)
10 L9: Innovation Strategies (TC)
11 L10: Strategy in action (TC)
12 L11: Module Review & Exam Briefing (TC)
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Core Text
• Johnston, G. Whittington, R. Scholes, K. Angwin, D.
& Regner, P. 2015. Fundamentals of strategy. 3rd
Edition. FT Prentice Hall: London.
• Grant, R.M. 2008. Contemporary strategy analysis.
Oxford: Blackwell Publishing.
• Johnson, G., Whittington, R. and Scholes, K. 2014.
Exploring Strategy. 1oth Edn, London: FT Prentice
Hall.
• Lynch, R. 2012. Strategic Management. 6th ed.
London: FT Prentice Hall.
• McGee, J. Thomas, H. and Wilson, D. 2013.
Strategy: Analysis and Practice. 3rd ed. London:
McGraw-Hill
• Porter, M. 2004. Competitive advantage: creating
and sustaining superior performance. London: Free
Press.
• Thompson, J. and Martin, F. 2010. Strategic
Management: Awareness, Analysis and Change. 6th
ed. London: Thomson Publishing.
• Whittington, R. 2001. What is Strategy – and does it
matter? 2nd ed. Hampshire: Cengage Learning.
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Assessments
• Assessment 1 • Assessment 2
• Report • Exam
• 2,500 words • 2 Hours
• Monday 19th November • 10th December 2018
by 16:00 onwards
• Submit to Grade mark
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What is Strategy?
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Definitions of Strategy
‘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 D. Chandler
‘Competitive strategy is about being different. It means
deliberately choosing a different set of activities to deliver a
unique mix of value.’ Michael Porter
‘A pattern in a stream of decisions’ Henry Mintzberg
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Definitions of Strategy
‘..the long-term direction of an organisation’ Johnston, G.
et al Fundamentals of strategy (Core Text)
• ‘ .. All strategies boil down to two very broad options:
Do what everyone else is doing (but do it cheaper), or do
something no one else can do. M. E. Porter (1996) What
is Strategy? Harvard business Review, Nov - Dec
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Fundraising Competitive Social
Strategy Sports Strategy Environmental Strategy
Strategy Strategy
Future Strategy Plan
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Discussing the Big Questions
Staf
f
?? a ts
Wh Who We Are re
a tW Th
eW Ideas & Options d ers
an ans Cu st om
i e
tt
oA nit Wh
ch rtu at w e S
ie p o houldn
't Do
ve Op
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Given what is going on around
us, do we need to rethink who
we are?
The Future ?
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BBC Issues to Consider in Strategy
• How much scheduled TV do younger audience watch?
• Top 5 rated shows on terrestrial TV 2016 were non scripted
• Competitive Space:
• Drama: Netflix and Amazon
• Films: Now TV; Sky; Mubi
• Sports: SKY and BT
• Entrants:
• Google Play Movies & TV
• Apple’s TV app
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How Does the BBC’s Future Seem Now?
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BBC Issues to Consider in Strategy
• BBC has quality and valued assets & resources
• Programmes, star presenters on contract, production.
• On line content and apps (70+ Million a week; no 3
globally)
• Radio
• iPlayer
• CBBC / CBEEBIES
• Global brand and reputation
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In world fast changing technology and
merging and morphing markets: The BBC
has to make clear choices, about its
identify, its future objectives and what it
will and won’t do.
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How do These Concepts Fit Together ?
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Mission
Vision Value
Plans Strategy
Options Purpose
Objective
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The Language of Strategy
• BBC Mission: To enrich people's lives with programmes and services
that inform, educate and entertain.
• BBC Vision: To be the most creative organisation in the world.
• BBC Objectives: Make the most creative and distinctive output; To
innovate online to create a more personal BBC; To serve all
audiences; Improve value for money
• Sky Strategy: Our strategy is to broaden our business;
moving into new markets, opening up new customer
segments and expanding our range of products and services.
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The Architecture of Strategy
Synergies
Operational Daily
Mission Objectives Strategy
Plans Actions
H.R.
Why we
exist Quality
Where we
want to be! Marketing
How we are
going to get
there! Procurement
Planning Action
William E. Rothschild
What do you want to achieve or avoid? These questions lead to objectives.
How will you go about achieving results? These answers you can call strategy.”
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Perspectives on Strategy
• Chandler: Flow & Organisation Process
• Porter: Choice & Competition Structure
• Mintzberg: Patterns & Emergent Art / Craft
Multiple Perspectives Exist: Can All Be True?
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Three Horizons for Strategy
Horizon 1: Extend and defend
core business
Horizon 2: Build emerging
businesses
Horizon 3: Create viable
options
Microsoft
Horizon 1: Windows 10 Extensions ; Surface, Phones, Servers, Minecraft
Horizon 2: Decline in PC, Wearables, Platform Integration, Single OS
Horizon 3: ????
Source: M. Baghai, S. Coley and D. White, The Alchemy of Growth, Texere Publishers, 2000. Figure 1.1, p. 5.
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Strategy vs. Strategic Planning?
A Process That Helps Us Create 5 Year/3
Year/18 Month Plans
Models and
frameworks to
help organisations
develop the best
way forward.
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The Exploring Strategy Model
The Output of the
Strategic planning process
is the Strategy.
Sky: Our strategy is to
broaden our business;
moving into new markets,
opening up new customer
segments and expanding
our range of products and
services
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Strategic Position
• Concerned with the external
environment, the organisation’s
strategic capability (resources
and competences), goals and
culture.
• Key environmental
opportunities and threats
• Key strengths and weaknesses
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Strategic Choices
• Directions and methods.
• How should individual business
units compete?
• Should we innovate?
• Which businesses to include in
the portfolio?
• Where should we compete
internationally?
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Strategy in Action
• How strategies are formed
and implemented.
• The emphasis is on the
practicalities of managing.
• What are the required
organisation structures and
systems?
• How should the organisation
manage the change needed?
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Organisations Have Levels of Strategy
Co
Overall scope of an organisation
and how value is added to the
rp
business units. or
at
Way a business seeks to
compete in its particular e
market.
Business
Different parts of the
organisation deliver
the strategy through
managing resources,
processes and people
Operational
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Corporate Level
Business level Branding, Investments,
Sony Global
Improve Products Direction
HQ
& Marketing
Financial
Electronics Movie Game Music
Services
Sony
Blu-ray Playstation
Pictures
Operational Level Maintain
James
Quality, Develop
Bond
Innovations
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Strategic
Strategic Thinking
Planning
Same but Cheap / Better Opportunity, Idea, Change
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Being Strategic (Strategic Thinking)
• Planning and Thinking, are similar and different.
• We are strategic every day; we are natural strategic
thinkers.
• Plan: Your monthly budget
• Thinking: If I use the offer, the discount code and the
coupon I save 35%
• If I offer to do some long shift, I can get cover for a
weekend away.
• The two exist together in organisations.
What do I do next?
• Find / buy the textbook – and start reading!
• Check the Hub regularly
• Prepare for the first seminar
• Check the assessment and guidelines
• Read widely
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