Corporate Strategy
description
Transcript of Corporate Strategy
Introduction and Overview
Objectives: To define management / corporate strategy
and to examine its link with strategic decision making.
To explore the core areas of corporate strategy.
Lynch, R. (2000) Corporate Strategy (2nd ed.) London, FT/Prentice Hall, Ch 1, 3 & 6
Johnson, G. & Scholes, K. (1999) Exploring Corporate Strategy (5th ed.) London, Prentice Hall, Ch 1, 3 & 4
Truss, C., Mankin, D. & Kelliher, C. (2012) Strategic Human Resource Management, Oxford, Oxford University Press
de Wit, R. & Meyer, R. (1998) Strategy (2nd ed.) London, Thompson, Ch 1
To consider the process, content and contexts within which strategic decisions are arrived at
To analyze the environment
To consider the contribution of Michael Porter
Define corporate strategy and explain its various elements.
Explain the core areas of corporate strategy and how they interlink with the wider environment.
Distinguish between process, content and context of a corporate strategy.
“Corporate Strategy is concerned with an organization's basic direction for the future: its purpose, its ambitions, its resources and how it interacts with the world in which it operates.”
(Lynch, 2000:5)
Sense of purpose - changes with time, with the size of the organization, with the resources it has at its disposal and with the competitive nature of the environment.
Let us take as our example your organization:
What is its purpose? How has this purpose changed? What will be its purpose into the future?
Along with purpose organizations require plans or actions, which need to be, developed to enable the purpose to be realized.
Let us link back to your organization! What plans/actions have been set in motion to help deliver the purpose?
“Corporate strategy is the pattern of major objectives, purposes or goals and essential policies or plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be.”
(Lynch, 2000:8)
Organizations are then faced with three areas in which the essential management of such purposes, plans and actions remain essential:
The organisation’s internal resources; The external environment within which the
organisation operates; The organisation’s ability to add value to what
it does.
Sustainable Developing the process Offer competitive advantage Exploit linkages between the organisation
and its environment Vision
Involves the entire organization Has minimum and maximum objectives
over time Covers the range and depth of the
organizations activities Directs the changing and evolving
relationship of the organization with its environment
1 Environmental scanning 2 Strategic analysis 2 Strategy development / formulation 3 Strategy implementation 4 Evaluation & control However, problems arise: Influence of judgment and values Speculation!
Context - the environment within which the strategy operates and is developed
Content - the main actions of the proposed strategy
Process - how the actions link as the strategy unfolds
The prescriptive approach
The emergent approach
What they say about the three core areas: linear / sequential / interrelated