contd, + Stretching an organisation’s resources and competences to create new opportunities or to capitalise on them Combined company could offer new subscription packages covering TV, movies, telephone and Internet services May require major resource changes for an organisation decisions to expand geographically entering into new markets with high risk.contd. « Likely to affect operational decisions i. New structures and management controls would b needed ii. Human resources policies and practices would also have to be reviewed ii, Link between overall strategy and operational strategy is very important » No matter how well considered a strategy is, it will not succeed At the operational level, the real strategic advantage can be achieved.contd. + Affects the values and expectations of those who have power in and around the organisation. Definition Strategy is the direction and scope of a organisation over the Jong term, which achieves advantage for the organisation through the configuration of resources within a changing environment and to fulfill stakeholder expectationsConsequence of the Characteristics of Strategy Strategic Decisions are likely to be complex in nature Likely to be made in situations of uncertainty Likely to demand an integrated approach Manage change relationships and networks outside the organisation Strategic Decisions will very often involve change in organisationscontd... Strategic decisions, whether in military or business spheres share three common characteristics + They are important * They involve a significant commitment of resources * They are not easily reversible Differences between Business competition and Military conflict Objective: War-Defeat the enemy Business- Competitive ambitions, seeking coexistence rather than destruction of competitorsLevels of Strategy + Corporate Level Strategy CEO, BOD and Corporate Staff + Business Unit Strategy Divisional managers and staff + Operational/Functional Level Strategy Functional ManagersConsequence of the Characteristics of Strategy Strategic Decisions are likely to be complex in nature Likely to be made in situations of uncertainty Likely to demand an integrated approach Manage change relationships and networks outside the organisation Strategic Decisions will very often involve change in organisationsDistinction Strategic Management Ambiguous/uncertain Complex Organisation wide Fundamental Long term implicationsDistinction Strategic Management Operational Management + Ambiguous/uncertain + Routinised Complex * Operationally specific Organisation wide * Short term implications Fundamental Long term implicationsThe Strategy Making Process Select the corporate mission and major corporate goals Analyse organisation's external competitive environment (O, T) Analyse organisation's internal competitive environment (S, W) Select Strategies Implement the strategies Feed back