Topic 1 - Introduction - Lecture Notes T1 2017

Slide 1.
Deakin University MPM703: Topic 1
Introducing
Strategy
Johnson e.a. Ch 1
Lecture slides edited and
amended by Dr Murray Frazer
Trimester 1, 2017
Johnson, Whittington, Scholes, Angwin and Regnr, Exploring Strategy Powerpoints on the Web, 10th edition Pearson Education Limited 2014
Slide 1.2
Lecturer
Dr Murray Frazer
Melbourne Burwood Campus
murray.f@deakin.edu.au
M 0419 306 316
BSc(Hons)(Monash), PhD(Cambridge), MAdmin

(Monash), GradDipEd(Tertiary)(USQ), BA(Deakin)
Former Senior Executive Service, Government of Victoria
Former Dean, Faculty of Business, and former Pro Vice-Chancellor, in
charge of one-half of the Uni, at Swinburne University of Technology
Teaching and research experience in Australia, UK, Canada, Malaysia
and travel for business or pleasure to over 50 countries
15 yrs teaching part-time or sessional at Deakin
Slide 1.3
Strategy What is it?

Some organisations survive for many decades a few for
centuries while others fail after just a few years.
Apple, Blackberry, HTC, Motorola, Samsung
Nokia, Kodak, Dick Smith Electronics
Universities Deakin (42 yrs), Melbourne (160),

Cambridge (>800)
Why do some survive, and others dont?
Slide 1.4
Learning outcomes for Topic 1

1. Summarise the strategy of an organisation in a
strategy statement
2. Identify key issues for an organisations strategy
3. Understand the textbooks approach of Strategic
Position, Strategic Choices, and Strategy in Action
4. Distinguish between levels of strategy
corporate(university or organisation as a whole),
business(Faculty, unit within the organisation) and
operational strategies
Slide 1.5
Definitions of strategy (1)

BOOK_ EXPLORING STRATEGY POWER POINTS 10th Edition
..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 (DOESNT DEFINE EXACTLY
THE DIFFERENCE. )
Michael Porter
(DEFINITION_ STRATEGY IS THE SET OF ACTIONS, IDEAS AND PLANS THAT
DETERMINE THE LONG TERM FUTURE OF AN ORGANISATION.)
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, NovemberDecember, p. 60
Slide 1.6
Definitions of strategy (2)
..a pattern in a stream of decisions

Henry Mintzberg
..the long-term direction of an organisation

Exploring Strategy
Strategy is the set of actions, ideas, and plans that

determine the long-term future (years) of an
organisation
Sources: H. Mintzberg, Tracking Strategy: Towards a General Theory, Oxford University Press, 2007, p. 3
Slide 1.7
Strategic decisions
Future scenarios determinations, RISKY
We cannot be precise, but precision depends on the context
Source: From G. Johnson, K. Scholes and R. Whittington. Exploring Corporate Strategy, 8th edn, Pearson Education 2008.
Slide 1.8
Levels of Strategy (1)
Strategy can be considered at three levels:

1. Corporate-level Strategy
overall range of activities and of capabilities
2. Business-level Strategy
competitive basis of individual business units
3. Operational-level Strategy
acquisition and use of resources, processes
and people to deliver to customers
Slide 1.9
Levels of strategy (2)

Vice Media example from textbook, pp 4-7
strategy Vice Media

level diversifying from the
original magazine
Corporate- into other activities
including retail,
strategy publishing and video
Business-level Marketing and
content
improvements in the
Vice magazine to
Operational strategy attract more readers
Vices operational
strategies are
geared to meeting
its investment
needs and raising
finance
Slide 1.10
The Exploring Strategy model
Textbook, p. 11
Slide 1.11
Strategic Position (1)
The strategic position is concerned with:

the external environments impact on the
organisation
the resources and competences within the
organisation - its strategic capability
the purpose and goals of the organisation
the culture of the organisation
Slide 1.12
Slide 1.13
Fundamental questions for Strategic Position:

What opportunities and threats are in the
external environment?
What strengths and weaknesses does the
organisation possess its capabilities?
What is the basic purpose of the organisation?
How does culture fit and shape the strategy?
To develop a strategy we need tools to allow us to

answer these questions
Slide 1.14
Strategic Choices (1)
Strategic Choices involve the options for

strategy in terms of both:
the directions in which strategy might move
and
the methods by which strategy might be
pursued
That is, given the Strategic Position just

identified, what can we do about it?
Slide 1.15
Slide 1.16
Fundamental questions for Strategic Choices:

Which businesses should be included in the full
corporate portfolio?
How should business units compete?
In which if any international markets should
they be competing?
Is the organisation innovating appropriately?
Should the organisation buy other companies,
form alliances or go it alone?
Slide 1.17
Strategy in Action (1)
Strategy in Action is about how strategies:

are formed, and how they
are implemented
That is, given the Strategic Position and the

Strategic Options we have identified, how do
we act on these ideas?
The emphasis here is on the practicalities of
managing
Slide 1.18
Slide 1.19
Fundamental questions for Strategy in Action:

How do we evaluate strategies to ensure they are
suitable, acceptable and feasible?
What kind of strategy-making process is needed?
What are the required organisational structures
and systems?
How should the organisation manage the
necessary changes?
Who should do what in the strategy process?
Slide 1.20
The strategy checklist

Strategic Position Strategic Choices Strategy in Action
What are the How should business units Are strategies suitable,
environmental compete? acceptable and feasible?
opportunities and threats? Which businesses to What kind of strategy-
What are the include in a portfolio? making process is
organisations strengths Where should the needed?
and weaknesses? organisation compete What are the required
What is the basic purpose internationally? organisation structures
of the organisation? Is the organisation and systems?
How does culture fit the innovating appropriately? How should the
strategy? Should the organisation organisation manage
buy other companies, ally necessary changes?
or go it alone? Who should do what in the

strategy process?
Slide 1.21
Working with strategy
All managers are concerned with strategy:
Top managers
Middle and lower level managers
Strategy specialists, perhaps from outside the

organisation, can be useful
Slide 1.22
Strategy in different contexts

Strategy theory developed in the 1960-70s, for large,
mainly-US, multi-national manufacturers, pre-internet
Care is needed if applying it in different contexts as the
balance of strategic issues may differ quite
substantially
The Exploring Strategy Model can with care be
applied to many kinds of organisations, such as:
small businesses
medium-sized businesses
large and multinational corporations
public sector organisations
not-for-profit organisations
Slide 1.23
Strategy by Design
Strategy is designed in advance with a

detailed plan carefully developed with the
assistance of professional strategists
Rational, objective, systematic, analytical
Less attention usually given to cultural,
political or unpredictable aspects of strategy
Usually results in a written and published
strategic plan
Slide 1.24
Strategy by Experience
Strategy largely builds on and continues

what has gone before
Strategy is heavily influenced by the
prior experience of managers
The organisations culture and the taken-
for-granted assumptions and ways of
doing things are key drivers of strategy
Not always presented as a published
strategic plan
Slide 1.25
Strategy Statements
Strategy should have three main themes:

1. Fundamental Goals
often given as mission, vision and objectives
2. Scope or Domain of Activities
customer groups, geographic locations, internal
or external activities
3. Capabilities or Comparative Advantages
a key to how the organisation will achieve its
goals in its chosen domain
Can your organisation put its Strategy Statement
into no more than 35 words?
Slide 1.26
Summary
Strategy: Long-term direction, including goals, scope,

and the competitive advantages of the organisation
Levels of strategy: Corporate, Business, Operational
Strategy performed by managers throughout an
organisation, as well as by specialists
Strategic position (or context), strategic choices (or
content), strategy in action (or process)
Strategic issues from different perspectives: design
or experience,
and for different contexts: MNEs, small businesses,
not-for-profits, government agencies
* * * *
Slide 1.27
Assessment
1: Group Business Strategy Report
2-3 people per group
Due 1 May 2017
40%
Strategic Analysis and Recommendations
2: Examination
2 hours
During exam period 5-16 June 2017
60%
Hurdle: you MUST achieve at least 50% on
the exam whatever your assignment mark!
Slide 1.28
Next Week
Important material about the Assignment
How to write an Assignment
Why YOU should attend all lectures, or listen

carefully to the Echo recordings
How to PASS this Unit
Topic 2: Strategic Position: The Environment
* * * *

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Slide 1.

Deakin University MPM703: Topic 1

BSc(Hons)(Monash), PhD(Cambridge), MAdmin

Strategy What is it?

Apple, Blackberry, HTC, Motorola, Samsung

Nokia, Kodak, Dick Smith Electronics

Universities Deakin (42 yrs), Melbourne (160),

Why do some survive, and others dont?

Learning outcomes for Topic 1

Definitions of strategy (1)

Competitive strategy is about being different. It means

Definitions of strategy (2)

..a pattern in a stream of decisions

..the long-term direction of an organisation

Strategy is the set of actions, ideas, and plans that

Future scenarios determinations, RISKY

We cannot be precise, but precision depends on the context

Levels of Strategy (1)

Strategy can be considered at three levels:

Levels of strategy (2)

strategy Vice Media

The Exploring Strategy model

Strategic Position (1)

The strategic position is concerned with:

Strategic Position (2)

Strategic Position (3)

Fundamental questions for Strategic Position:

To develop a strategy we need tools to allow us to

Strategic Choices (1)

Strategic Choices involve the options for

That is, given the Strategic Position just

Strategic Choices (2)

Strategic Choices (3)

Fundamental questions for Strategic Choices:

Strategy in Action (1)

Strategy in Action is about how strategies:

That is, given the Strategic Position and the

Strategy in Action (2)

Strategy in Action (3)

Fundamental questions for Strategy in Action:

The strategy checklist

buy other companies, ally necessary changes?

or go it alone? Who should do what in the

Working with strategy

All managers are concerned with strategy:

Strategy specialists, perhaps from outside the

Strategy in different contexts

Strategy is designed in advance with a

Strategy largely builds on and continues

Strategy should have three main themes:

Strategy: Long-term direction, including goals, scope,

Important material about the Assignment

How to write an Assignment

Why YOU should attend all lectures, or listen

How to PASS this Unit

Topic 2: Strategic Position: The Environment

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