Comprehensive Study Notes: Introducing Strategy

Welcome to your complete, all-in-one revision guide for this chapter. These notes condense the
entire lecture into simple, logical, and easy-to-remember points.

1. Learning Outcomes (What you must know by the end)

 Write a clear Strategy Statement (Goals + Scope + Capabilities).

 Use the Exploring Strategy Model to diagnose any business problem.

 Clearly distinguish between Corporate, Business, and Operational strategies.

 Explain the role of managers, specialists, and consultants in strategy.

 Apply 4 different lenses (Design, Experience, Variety, Discourse) to see strategy from all
angles.

2. Definitions of Strategy (The "Big 4")

Theorist The Definition Simple Meaning (In Plain English)

"Determination of long-term Strategy is a formal plan. You decide where you want to
Chandler goals... and allocation of make a roadmap, and gather the money/people needed
resources." there.

"Being different... deliberately Strategy is competitive advantage. Don't just do what ri

Porter choosing a different set of cheaper; do different things to create unique value. (e.g.
activities." Southwest Airlines vs. Traditional Airlines).

Strategy is an emerging habit. Look back at what you

"A pattern in a stream of
Mintzberg actually did over time. The consistent trend you see is yo
decisions."
strategy, even if it wasn't planned.

Johnson,
"The long-term direction of an Strategy is the overall journey. It simply answers the big
Whittington &
organisation." question: "Where are we heading over the next few yea
Scholes

Quick Tip: Remember it as Plan (Chandler) → Difference (Porter) → Pattern

(Mintzberg) → Direction (JWS) .

3. The Three Horizons of Strategy (Time Management)

This framework helps companies manage the present while building the future. Never focus on just
one!
Horizon Focus Timeframe Example (Apple)

Extend & Defend the core The iPhone – protecting market

Horizon
business. (Your current cash- 1-3 Years share and releasing annual
1
cow). updates.

Build emerging businesses. Apple Watch & Services (Apple

Horizon
(Growing, but not yet huge 3-5 Years Music, iCloud) – growing
2
profits). steadily.

Create viable options for the AR Glasses & Autonomous

Horizon 5-10+
distant future. (Speculative Cars – they might fail, but could
3 Years
bets). be the next big thing.

4. The Three Levels of Strategy (Who does what?)

Strategy happens at every layer of a company. They must all align with each other.

Who
Level Key Question Example (Disney)
Decides?

"What business are we Disney decides to buy

Corporate-
in?" (Overall scope & CEO & Board Marvel, Pixar, and launch
Level
portfolio). Disney+.

Disney Theme Parks decide

"How do we
Business- Head of to compete on "magical
compete?" (Winning in a
Level Division experiences" rather than
specific market).
just cheap tickets.

"How do we Park managers schedule

Operational- deliver?" (Managing day-to- Department staff shifts and design ride
Level day resources, processes, Managers queues to minimize wait
people). times.

5. Writing a Strategy Statement (The 3 Ingredients)

If you are asked to summarize any company's strategy, you must include these three things:

1. Fundamental Goals: What is the mission/vision? (e.g., Tesla: Accelerate the world's
transition to sustainable energy.)
 2. Scope/Domain: Where does it operate? (e.g., Globally, selling electric vehicles, solar panels,
and batteries.)

3. Advantages/Capabilities: What makes it special? (e.g., Advanced battery tech, self-driving

software, and a massive charging network.)

6. Who Actually "Does" Strategy?

It is a myth that only the CEO handles strategy. Everyone plays a part:

 Top Managers: Formulate and control the big-picture strategy.

 Middle & Lower Managers: Must meet strategic targets, deal with daily constraints, and
translate big plans into team actions.

 All Managers: Must communicate strategy to their teams and send feedback upwards if
something isn't working.

 Strategy Specialists:

o In-house Planners: Full-time employees who analyze data for the company.

o Consultants: External experts hired for fresh perspectives (e.g., McKinsey, BCG,
Accenture).

7. Strategy's Three Academic Branches (The Theories)

Strategy is built on three main disciplines:

1. Economics (The Market): Focuses on competition, industry profits, and resource allocation.

2. Sociology (The People/Culture): Focuses on how groups behave, organizational culture, and
power dynamics.

3. Psychology (The Mind): Focuses on individual decision-making, biases (e.g., overconfidence),

and leadership traits.

8. The Core Model: The "Exploring Strategy" Model

This is the main framework of the whole course. It has 3 giant pillars.

Pillar 1: Strategic Position (Where are we now?)

 Environment: What are the opportunities and threats outside? (Competitors, trends).

 Capability: What are our strengths and weaknesses? (What are we good at?).

 Goals/Purpose: Why do we exist? What are we aiming for?

 Culture: What are our internal beliefs and unwritten rules?

Pillar 2: Strategic Choices (Where are we going?)

  Business-level: How do we compete? (Cost vs. Differentiation).

 Corporate-level: Which industries should we be in?

 International: Where in the world do we sell?

 Innovation: Are we improving slowly or disrupting?

 Acquisitions: Should we buy other companies or partner with them?

Pillar 3: Strategy in Action (How do we get there?)

 Evaluating: Is this plan Suitable, Acceptable, and Feasible (SAFe)?

 Organising: What structure and systems do we need?

 Processes: How do we actually make decisions?

 Practice: Who does what, and how do we manage change?

9. Strategy in Different Contexts

The model adapts depending on the type of organization:

 Small Businesses: Main issues are Purpose and Growth (limited resources).

 Multinationals (MNCs): Main issues are Geographical Scope and Structure/Control (global
vs. local).

 Public Sector (Govt): Main issues are Service/Quality and Managing Change (political
constraints).

 Not-for-Profit (Charities): Main issues are Purpose and Funding (balancing mission with
raising money).

10. The 4 Strategy Lenses (Changing your perspective)

Looking at a problem through different lenses gives you different solutions. Use all 4!

Lens Metaphor Key Idea

Architect /
Design Strategy is planned logically. Analyze data, run SWOT, pick the best position.
Blueprint

Experienc Strategy emerges from past habits and company culture. "This is how we've a
Historian / Culture
e done it."

Gardener / Strategy comes from bottom-up experimentation. Try lots of small things; kee
Variety
Evolution works (like 3M's Post-it notes).
Lens Metaphor Key Idea

Storyteller / Strategy is shaped by the words we use. How we talk about a problem influen
Discourse
Language we solve it.

11. Final "Cram" Summary (Must Remember!)

1. Strategy = Long-term direction.

2. Mintzberg = Strategy is a pattern in past decisions, not just a future plan.

3. Horizons = Manage the core (H1), build the future (H2), and place big bets (H3).

4. Corporate = What business? | Business = How to compete? | Operational = How to execute?

5. Strategy Statement = Goals + Scope + Advantages.

6. The Big Model = Position (Where) → Choices (What) → Action (How).

7. Lenses = Design (logic), Experience (culture), Variety (experiments), Discourse (language).