Unit 2: Strategy and Stakeholder Management

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary focus of a top-down strategy formulation approach?

Encouraging grassroots input from all employees

Enhancing collaboration among different departments

Promoting continuous adaptation to changing markets

Establishing a clear direction set by upper management (correct)

Which statement best defines organizational purpose in a strategic context?

The average daily operations of a company

The products and services offered by the organization

The financial targets the organization seeks to achieve

The overall mission and vision guiding an organization (correct)

What distinguishes rational-analytic strategies from emergent strategies?

Rational-analytic strategies are systematic and data-driven (correct)

Emergent strategies are structured and rigid

Emergent strategies rely on long-term forecasts

Rational-analytic strategies are unplanned and spontaneous

What is a common reason for strategic execution failures within organizations?

Inadequate communication of the strategic vision Signup and view all the answers

In the context of planning versus learning in strategy, which is a key characteristic of a learning-oriented strategy?

It adapts based on feedback and changing conditions Signup and view all the answers

What does the rational-analytic view of strategy emphasize?

Logical, top-down goals Signup and view all the answers

Which aspect is characteristic of an emergent-learning strategy?

Innovation arising from opportunities Signup and view all the answers

What is a common characteristic of strategies formulated through a top-down approach?

Clear articulation of goals before taking action Signup and view all the answers

What is a potential pitfall of implementing a strategy without a plan?

Divergent and conflicting decisions Signup and view all the answers

In the context of strategic execution, which scenario illustrates a failure?

Decca Records' refusal to sign The Beatles Signup and view all the answers

How does self-knowledge contribute to effective strategy formulation?

It allows for realistic goal setting and adaptation. Signup and view all the answers

What is a negative consequence of overemphasizing planning in strategy formulation?

Bureaucratization of the strategy process Signup and view all the answers

According to the content, what role does a model or roadmap play in execution success?

It positively affects execution success Signup and view all the answers

Which of the following statements best summarizes the concept of strategy?

It involves both analysis and management practicalities. Signup and view all the answers

What is a critical difference between deliberate and emergent strategies?

Deliberate strategies have precise intentions from the start. Signup and view all the answers

How should implementation relate to strategy formulation according to the concepts discussed?

It should inform formulation iteratively Signup and view all the answers

What does Weick imply about the nature of a plan in organizations?

Plans are often rigid and inflexible Signup and view all the answers

What is one of the primary concerns of defining strategic purpose?

Affirming the organization's existence Signup and view all the answers

Which term describes strategies that result from both deliberation and emergent circumstances?

Umbrella strategies Signup and view all the answers

What can planning act as in the strategy process according to the content?

A control tool rather than a facilitating tool Signup and view all the answers

What often happens when managers lack a logical approach to execution?

Execution suffers or fails due to uncertainty Signup and view all the answers

Study Notes

Unit 2a Strategy: Conceptualizing Strategy

This unit focuses on conceptualizing strategy, specifically understanding strategic purpose.
A lecture on campus is part of this unit.

Unit 2b Strategy: Stakeholder Management

Includes watching videos:
- "Central tenets of stakeholder theory" (2 minutes 57 seconds)
- "BBC2: Turkey: Empire of Erdoğan" (11 minutes 8 seconds)
Reading: Bridoux, F., & Stoelhorst, J. (2022). Stakeholder theory, strategy, and organization: Past, present, and future. Strategic Organization, 20(4), 797-809.
Doing 5 practice multiple-choice questions (MCQs) available on Moodle.

Unit 2 Themes

Exploring the concept of strategic purpose.
Identifying strategic purpose through words and actions.
Evaluating if organizations consistently fulfill their strategic purpose.

Unit 2 ILOs

Critically discuss the nature of management.
Describe key concepts and theories related to various strategy areas (e.g., entrepreneurship, marketing, international business).
Demonstrate understanding by providing examples from various business contexts.
Evaluate and synthesize competing concepts and theories.

What is Strategy?

Strategy defines the long-term direction of an organization, encompassing both deliberate and emergent approaches.
It involves managing people, relationships, and resources effectively.
A key aspect of strategy is its practical application and managing the complexities involved in strategy.
Strategy centers around rising to challenges and accomplishing significant outcomes.
Strategy is the determination of an organization's fundamental objectives, courses of action and resource allocation.

Deliberate vs. Emergent Strategy

Deliberate strategy is a rational and analytical approach, with precise intentions defined before action is taken.
Emergent strategy is a reactive and learning-based approach, emerging from and adapting to opportunities.
Realizing a intended strategy depends on factors like the alignment of organizational members and the benign environment.

Strategy Characteristics

Deliberate (rational-analytic): Precise intentions, agreement among stakeholders, benign and predictable environment. Emphasis on tools and techniques for analysis, logical top-down cascade through organization.
Emergent (learning-): Absence of precise initial intentions; flexibility is key; emerging from opportunities. Often innovative, leveraging serendipity and luck.

Case Examples

Rational-analytic: Bank of England setting interest rates, license-seeking for exploration work, awarding take-off and landing slots at Glasgow Airport.
Emergent-learning: IKEA's flat-packing approach to selling furniture, Decca Records rejecting The Beatles, Westminster government's handling of the COVID-19 pandemic.

Strategy without a Plan

Without a plan, decision-making within an organization may be uncoordinated, inconsistent and conflicting.
A well-defined roadmap facilitates successful execution.

Strategy (over) Emphasizing Planning

Plans often promote inflexibility.
Planning can negatively affect commitment to strategy making.
Plans can become bureaucratic in the strategy process, functioning as control rather than facilitation tools.

Strategy: Perhaps a Wee Bit of Both

Real-world strategies often have characteristics of both planning and learning.
Leadership cannot foresee and preempt all decisions of other stakeholders, and organizations aren't solely reliant on central leadership to govern them.

Karl Weick (1995) on Plans

The concept of plans and their role are analyzed.

Defining Strategic Purpose

Strategic purpose affirms the reason for an organization’s existence.
It outlines activities, goals and how an organization creates value for its stakeholders (both financial and non-financial).

Understanding Strategic Purpose

Purpose should cover how an organization's actions make a difference and for whom.
This is done by establishing mission, vision, value statements and corporate goals.

Profit vs. Purpose

Contrast between profit-focused and purpose-driven businesses.
A quote by Milton Friedman on the sole objective of a business is profitability.

John Lewis Partnership: A Partnership with Purpose

An example of a company emphasizing a partnership/purpose over profit.
The John Lewis Partnership values collaboration among partners.

Strategic Purpose: Can It Change Over Time?

Strategic purpose is linked to organizational identity.
The evolving purpose can necessitate evaluation and adaptation for ongoing organizational success.

Maintaining Strategic Purpose Over Time (Glasgow Celtic FC Case)

Example of how a company can maintain its purpose, even through major historical and organizational changes.

Critically evaluating strategic purpose

Corporate Social Responsibility (CSR) is analyzed.
Research on CSR and its real-world effectiveness is assessed.
The role of Corporate Governance in relation to strategy is examined.

Unit 2a Summary

What do we mean by ‘strategic purpose’?
How do organizations define their 'strategic purpose' (mission, vision, values)?
How can we identify strategic purpose through words and actions?
Do organizations always successfully fulfil strategic purpose?

Unit 2a ILOs Summary

Critically discuss the nature of management
Describe key concepts and theories related to strategy areas.
Demonstrate understanding of theories by drawing on examples.
Evaulate and synthesise competing concepts and theories

Unit 2a References

Provides a list of sources used for the unit.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers key concepts in conceptualizing strategy, focusing on strategic purpose and stakeholder management. It includes video content and readings related to stakeholder theory and practice MCQs to reinforce your understanding. Test your knowledge on evaluating organizations' strategic alignment and management practices.