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C H A P T E R 1
INTRODUCING STRATEGY
Introduction
This chapter has been restructured since the last edition, particularly to put the Exploring
Strategy model of position, choice and action in a more prominent position. This model should
serve as a useful summary of the books perspective on strategy as well as a practical heuristic
for approaching strategy problems.
Illustration 1.1
Vice pays
Many students will be familiar with Vice Media, amused or perhaps offended. Anyway, the
main purpose of this illustration is to introduce students to the range of issues that make up
strategy. It touches directly on key topics introduced in this chapter, for example, strategic
purpose (the largest online media company in the world); corporate-level strategy (Vice is
both international and diversified, with a pub as well); and corporate culture (weird). With
respect to the specific questions:
1. How does Vice Medias strategy fit with the various strategy definitions of Alfred Chandler,
Michael Porter and Henry Mintzberg (see Figure 1.1)?
On the definitions of strategy: in terms of Figure 1.1, Vice seems more Mintzbergian than
concern for uniqueness, differentiating itself by offering edgy media worldwide.
2. What seems to account for Vice Medias success and is it sustainable?
Accounting for Vices success: on the Porterian principle, Vice is clearly different and in a
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Illustration 1.2
Strategy statements
An important point in this illustration is to show how strategy applies to widely different kinds
of organisations both a large technology company and a public university. Although the
precise content of the two organisations materials vary, they both cover the major issues
involved in a strategy statement: goals, scope and advantages/capabilities.
1. Construct short strategy statements covering the goals, scope and advantage of Samsung
and the University of Utrecht. How much do the different private and public-sector contexts
matter?
Strategy statements for Samsung Electronics and Utrecht University. Samsung is very clear
about its goals ($400bn in revenue, and top five brand by 2020; note its vision Inspire the
World, Create the Future sounds more like a mission statement); its scope is clearly
expanding, from mostly consumer electronics into health, medicine and biotechnology; and
2. Construct a strategy statement for your own organisation (university, sports club or
employer). What implications might this statement have for your particular course or
department?
Strategy statements for students own organisations. This may well surface the fact that
some provide more public information than others, and are often vaguer about particular
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Illustration 1.3
Strategists
This illustration is intended to reinforce the theme that strategy is something that students could
get involved in personally as a middle manager (Galina), as in some sense a strategic planner
(Masoud) or as a strategy consultant (Chantal). All of these roles are further discussed in
Chapter 15.
Video assignment
British Heart Foundation (BHF)
The British Heart Foundation is a large UK charity focused on research into coronary heart
disease. It was founded in 1961 by a group of medical professionals wanting to fund extra
research into the causes, diagnosis, treatment and prevention of heart and circulatory disease. In
2012, the BHF raised over £128m to fund its activities. The BHF not only funds a high
proportion of the UKs research into cardiovascular disease (over 50%), but also undertakes a
lot of education and care activity. Peter Hollins is the Chief Executive who, as the video says, is
responsible for the strategy and its delivery on behalf of the BHF trustees and the stakeholders.
1. Section 1.2.3 gives a clear summary of what is meant by a strategy statement it should
have three main themes: the fundamental goals (mission, vision or objectives) that the
organisation seeks; the scope or domain of the organisations activities; and the particular
advantages or capabilities it has to deliver all of these. Students will have their own ideas on
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2. Figure 1.3 shows the Exploring Strategy model which is the framework on which the whole
textbook is founded so it is useful to make sure students are familiar with its elements. A
useful approach is to take each element of the model (or selected elements if time is short)
and give relevant examples from BHF to illustrate the point. For example, the changes in
the economic environment (recession) create opportunities and threats for the BHF as
Peter Hollins says recession can hit the amount raised in fundraising activities but provides
Assignment 1.1
Strategy statements
The purpose of this assignment is to get students to engage with strategy in real organisations.
These could be their own university or better, in order to get a range their actual employer or
a desired employer. Students should be told to expect that the extent of information is likely to
be variable. Students could be asked to ponder why some organisations are more informative
than others. Published strategy information is often particularly deficient in two areas:
Details with regard to objectives: vision and mission statements are common. However,
organisations are often reluctant to reveal much about their detailed objectives both for fear
Assignment 1.2
The Exploring Strategy Model
This assignment requires students to use Figure 1.3 as a guide to identifying the different
elements in the strategy of an organisation. It can be very useful in terms of highlighting the
scope of the subject and the organisation of the book.
Assignment 1.3
Strategy consultants
Reinforcing the message in Illustration 1.3 (Strategists), this assignment is intended to
emphasise to students that strategy is not just for top managers or about the fate of big
organisations. Strategy is a kind of work that they too could do. For many students, the
Assignment 1.4
Strategic management by context
The aim of Assignment 1.4 is to help students understand that the elements of strategic
management shown in Figure 1.3 are likely to differ somewhat between different types of
organisation. This is raised in Illustration 1.2 of the text (Samsung and Utrecht University).
A small business is typically heavily influenced by an individual (e.g. owner) or small group, so
understanding the values and views of such stakeholders is vital. However, typically small firms
also face important strategic choices about the basis on which they compete (e.g. should they
The influences on strategy in a public sector organisation require the student to recognise the
nature of public control and influence. A wide range of stakeholders is likely to be important in
both the public sector and not-for-profits. Determining and planning the allocation of resources
in a context in which different stakeholders have significant influence is a major issue, as in
both Aids Alliance and Queensland Rail.
Case Example
Glastonbury: from hippy weekend to international festival
This case is based on an entertainment area where many students will feel comfortable in having
some knowledge. Yet, they are unlikely to have considered the strategic implications that
pervade such an area. Below, these notes address the specific questions highlighted in the case
example. However, its worth considering some interesting features of the case that offer
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1. Sticking to the 35 word limit suggested by Collis and Rukstad in Section 1.2.3, what
strategy statement would you propose for the Glastonbury Festival?
Strategy statement
Consideration of Section 1.2.3 reveals the following points of discussion:
In terms of the goals of Glastonbury, these are clearly stated at the outset in the sense of
2. Carry out a three-horizons analysis (Section 1.2.1) of the Glastonbury Festival, in terms of
both existing activities and possible future ones. How might this analysis affect its future
strategic direction?
Three horizons analysis
Consideration of Section 1.2.1 reveals the following points of discussion:
It might be claimed that Glastonbury has been short sighted and purely focused on the
first horizon of core arts activities. The recent dropping of Festival Republic might even
3. Using the headings of environment, strategic capability, strategic purpose and culture seen
in Section 1.3.1, identify key positioning issues for the Glastonbury Festival and consider
their relative importance.
Environment, strategic capability, strategic purpose and culture
Consideration of Section 1.3.1 reveals the following points of discussion:
A wide range of environment issues emerge with opportunities such as sponsorship and
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4. Following on from the previous questions and making use of Section 1.3.2, what alternative
strategies do you see for the Glastonbury Festival?
Alternative strategies
Consideration of Section 1.3.2 reveals the following points of discussion:
5. Converting good strategic thinking into action can be a challenge: examine how the
Glastonbury Festival has achieved this by considering the elements seen in Section 1.3.3?
Strategic thinking into action
Consideration of Section 1.3.3 reveals the following points of discussion:
Evaluation of the strategic options from above should reveal a number that is suitable,
acceptable and feasible.