ExPress Notes

ACCA P3 Business Analysis

Chapter 1

The Strategic Position of an Organization

START The Big Picture

This chapter provides us with a number of key definitions as well as an introduction to some of the main strategic models.

KEY KNOWLEDGE Definitions & strategic models

Key definitions: Strategy: Various definitions are present but a straightforward view is Strategy is a plan of action designed to achieve a particular goal

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ExPress Notes
ACCA P3 Business Analysis

Strategic planning: An organisations process for ascertaining the strategy it should adopt, taking into account what they want to do, how they are going to do it and what resources they will need. Strategic planning covers where the organisation is planning on going, impacts on the whole organisation and involves the long term view. Note the distinction in what is meant by long term (for example the long term is different when comparing the airline industry with the fashion industry.)

Strategy Hierarchy: Corporate strategy: covers the big view of the organisation. It answers the question What business or businesses should we be in? Business strategy: the strategy of a single business organisation or the strategies of strategic business units (SBUs) Functional (or operational) strategy: the functional strategies involving items such as marketing, IT and HRM that support the business strategy.

Corporate Business Functional

It is important that the strategies support each other. For example, if the Business Strategy of a SBU revolves around providing high quality consultancy advice on certain areas, a functional strategy for HRM of minimising labour costs would cause problems. Different strategic models: 1. Johnson, Scholes and Whittington (JSW): The Rational Model which shows the strategic planning process in 3 categories of analysis choice implementation.

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2010 This material is the copyright of the ExP Group. Individuals may reproduce this material if it is for their own private use. It is illegal for any individuals to reproduce this for commercial use or for companies to reproduce this material partially and/or in full by any means, be it printed, photocopied, on electronic devices or any other means of reproduction. All examples presented in these course materials are for information and educational purposes only and should not be applied to a specific real life situation without prior advice. Given the nature of information presented in these materials, and given that legislation may change at any time, The ExP Group will not be held liable for any information presented in these materials as to its application to any specific cases.

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ExPress Notes
ACCA P3 Business Analysis

Analysis

Choice

Implementaion

2. Mintzbergs Emergent strategy: Very few strategies will result in outcomes exactly as planned. Instead, strategy will emerge and develop over time as the strategy evolves. It will result in intended, realised and emergent strategies. 3. Lindbloms incrementalism: Supports the view that strategy delivery should be based on small (incremental) changes over time rather than a limited number of extensive planned strategies. 4. Freewheeling opportunism: No planned strategy approach. Grab opportunities as and when they are identified. 5. JSW strategic lenses: design - experience - ideas Strategic planners should look at strategy through all 3 lenses.

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2010 This material is the copyright of the ExP Group. Individuals may reproduce this material if it is for their own private use. It is illegal for any individuals to reproduce this for commercial use or for companies to reproduce this material partially and/or in full by any means, be it printed, photocopied, on electronic devices or any other means of reproduction. All examples presented in these course materials are for information and educational purposes only and should not be applied to a specific real life situation without prior advice. Given the nature of information presented in these materials, and given that legislation may change at any time, The ExP Group will not be held liable for any information presented in these materials as to its application to any specific cases.

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ExPress Notes
ACCA P3 Business Analysis

Strategy as design
Strategy is a process of design with logical thought out processes (in effect, a rational model).

Strategy as experience Strategy develops based on previous experiences (in effect, an emergent strategy).

Strategy as ideas Strategy comes from within the organisation as opposed to the senior management. Ideas are created at all levels of an organisation.

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2010 This material is the copyright of the ExP Group. Individuals may reproduce this material if it is for their own private use. It is illegal for any individuals to reproduce this for commercial use or for companies to reproduce this material partially and/or in full by any means, be it printed, photocopied, on electronic devices or any other means of reproduction. All examples presented in these course materials are for information and educational purposes only and should not be applied to a specific real life situation without prior advice. Given the nature of information presented in these materials, and given that legislation may change at any time, The ExP Group will not be held liable for any information presented in these materials as to its application to any specific cases.

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