This is a summary of the book “Exploring Strategy” written by Gerry Johnson, Richard Whittington, Kevan Scholes, Duncan Angwin & Patrick Regnér. This summary is made from the 11th edition of this book and is made from chapter 1 to chapter 15, including the PESTEL, Porter's Five Forces Framewor...
,Introducing strategy
• Definition of strategy (from the book): Strategy is the long-term direction of an
organisation.
Two advantages:
1. Long-term direction of an organisation can include both deliberate, logical
strategy and more incremental, emergent patterns of strategy.
2. Long-term direction can include both strategies that emphasis difference and
competition, and strategies that recognise the roles of cooperation and even
imitation.
• Other definitions for strategy:
• Definition of the three-horizons framework: organisations should think of
themselves as comprising three types of business or activity, defined by their
‘horizons’ in terms of years.
,The purpose of strategy: mission, vision, values and objectives
• A mission statement aims to provide employees and stakeholders with clarity about
what the organisation is fundamentally there to do.
Two linked questions:
1. What would be lost if the organisation did not exist?
2. How do we make a difference?
• A vision statement is concerned with the future the organisation seeks to create.
Linked question is:
1. What do we want to achieve?
• Statements of corporate values communicate the underlying and enduring core
‘principles’ that guide an organisation’s strategy and define the way that the
organisation should operate.
Linked question is:
1. Would these values change with circumstances? (if the answer is ‘yes’ then
they are not ‘core’ and not ‘enduring’).
• Objectives are statements of specific outcomes that are to be achieved.
➢ Referred to as the ‘triple bottom line’ → economic, environmental and social
objectives.
Strategy statements
Strategy statements should have three main themes: the fundamental goals (mission,
vision or objectives) that the organisation seeks; the scope or domain of the organisation’s
activities; and the particular advantages or capabilities it has to deliver all of these.
• Scope: Refers to three dimensions: customer or clients; geographical location; and
extent of internal activities.
• Advantage: Describes how the organisation will achieve the objectives it has set for
itself in the chosen domain. In competitive environments, this refers to the competitive
advantage.
• According to Collins & Rukstad, strategy statements covering goals, scope and
advantage shouldn’t be longer than 35 word. The three themes are deliberately made
highly concise.
Levels of strategy
• Corporate-level strategy is concerned with the overall scope of an organisation and
how value is added to the constituent businesses of the organisational whole.
, ➢ Issues include: geographical scope, diversity of products or services,
acquisitions of new businesses, and how resources are allocated between the
different elements of the organisation.
• Business-level strategy is about how the individual businesses should compete in
their particular markets (this is often called ‘competitive strategy’).
➢ Issues include: innovation, appropriate scale and response to competitors’
moves.
• Functional strategies are concerned with how the components of an organisation
deliver effectively the corporate- and business-level strategies in terms of resources,
processes and people.
Link to the corporate, business and functional levels underline the importance of
integration in strategy.
The Exploring Strategy Framework
Exploring Strategy Framework includes understanding the strategic position of an
organisation; assessing strategic choices for the future; and managing strategy in action.
• Provides a comprehensive and integrated schema for analysing an organisation’s
position, considering the choices it has and putting strategies into action.
Exploring strategy in different contexts
• Small businesses: will certainly need to attend closely to the environment, because
they are so vulnerable to change.
• Multinational corporations: positioning in a complex global marketplace will be very
important.
• Public sector and not-for-profits: positioning issues of competitive advantage will
be important.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Annemiek04. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R236,20. You're not tied to anything after your purchase.
