Business Strategy

Dr. Sami Ullah

 Elements of Strategic Management

• There is a three part structure for thinking

about strategy.
– Strategic position
– Strategic choices
– Strategy into action
 Strategic Position
• Strategic position is concerned with influenced
of external environment, internal resources
and capabilities and stakeholder expectations
in success of organizational strategy.
 Strategic Position
• The environment
– The effect of wider political, economic, social, technological,
environmentally conscious and legal forces as well as the more
immediate pressures of business competition.
• Strategic capability
– The organization's resources and competences make up its
strategic capability. This may be analyzed into strengths and
weaknesses.
• Stakeholders' expectations
– Strategy is made in order to achieve the organization's purpose
 Strategic Choices
• At the level of the business unit, these choices
are about how to achieve competitive
advantage and are based on an understanding
of customers and markets.
• At the corporate level this is concerned with
the overall product/business portfolio, the
spread of markets and the relationship
between business units and the corporate
centre
 Strategy into Action
• There are three major issue when strategy is
implemented:
• Structuring
– It includes processes, relationships, organization structure and
how these elements work together.
• Enabling
– The process by which the organization's resources are managed
to both support and to create strategies.
• Change
– The management of change is an important feature of strategic
implementation.
 The importance of context
• The context of strategy is the organizational
setting in which it is developed.
– Small businesses have limited resources and strong
competition
– Multinationals are more concerned with problems
of structure, resource allocation and logistics
– Public sector and not-for-profit organizations are
influenced by ideology, politics, and the influence of
a range of stakeholders.