week1
Introduction to the Module and Strategy
University of Stirling Business School promotes the motto: "BE THE DIFFERENCE".
Initial module information presented through a video description.
Session’s Agenda
Core Topics to Address:
Attendance and Engagement.
Overview of Module Focus, Structure, and Assessment Information.
Foundations Discussion on Key Questions:
What is strategy?
What are the fundamental questions in strategy?
What roles does strategy perform?
Familiarization with Analytical Frameworks:
PESTEL/PEST Analysis: Framework for analysing external business environments.
Porter’s Five Forces: Framework for analysing industry structure and competitive forces.
Examination of Market Dynamics:
Influence of both non-market and market factors on organization strategies.
In-depth micro-environment analysis to identify key change drivers.
Development of alternative scenarios to prepare for environmental changes.
Attendance, Engagement, and Success
Importance of Attendance:
Good attendance correlates with positive outcomes for students.
Digital check-in required at all scheduled teaching sessions.
Follow-up support will be provided based on attendance data.
Learning Objectives
Completion of the topic should enable students to:
Understand module requirements and structure.
Gain insight into the origins of strategy and the evolution of strategic views over time.
Become familiar with key strategic terms and questions.
Recognize ongoing debates surrounding corporate values and social responsibilities.
Appreciate the contribution of strategy to the successful performance of individuals and organizations.
Module Focus
Primarily oriented towards how firms can achieve sustainable competitive advantages.
Address strategic challenges faced by firms in a global economic landscape.
Understand firm behavior and the strategic decision-making processes for both multinational enterprises (MNEs) and local firms.
Module Structure: Contents
Key Areas:
Strategic Positioning: Positioning of the firm in the business environment.
Strategic Choices: Decisions regarding market entry, product offerings, and operational frameworks.
Strategy in Action: Implementation and real-world applications of strategic plans.
Practical Information about the Module
Teaching Structure:
11 weeks of in-class learning sessions including weekly lectures (refer to timetable).
Four seminar sessions to engage in discussions and applications.
Available drop-in sessions for revision and class tests.
Required readings to be prepared for seminars prior to attendance.
Assessment Methods:
Class Test (40%): Consists of multiple-choice questions (MCQs) and open-ended questions to evaluate understanding of module content.
Individual Coursework (60%): Selection of an organization from the FTSE 100 to perform a detailed strategic analysis, with a 2,500-word limit, excluding appendices. Submission deadline set for 12:00 on Monday, 1 December 2025.
Understanding Strategy
Definition of Strategy:
Strategy is conceived as a plan, method, or series of actions designed to achieve a specific goal or effect (Wordsmyth Dictionary).
Alfred Chandler defines strategy as: “the determination of the long-run goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.”
Kenneth Andrews describes strategy as: “the pattern of objectives, purposes, or goals and the major policies and plans for achieving these 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.”
Levels of Strategy
Corporate-Level Strategy:
Addresses the overall scope of an organization including portfolio analysis, organization design, and resource allocation.
Business-Level Strategy:
Focused on gaining a competitive edge, managing responses to rivals, and innovation.
Functional-Level Strategy:
Pertains to operational activities, specific product markets, and the integration of processes and human resources.
Example: AG Barr:
Corporate-level strategy involves product diversification (e.g., IRN-BRU, Rubicon, Strathmore), strategic acquisitions (e.g., Funkin Cocktails), and sustainability focus.
Business-Level Strategy emphasizes brand innovation (e.g., IRN-BRU Sugar-Free), geographical expansion, and alignment with health-conscious consumer trends.
Functional-Level Strategy includes strong marketing campaigns and efficient operational strategies.
Strategy as Plan
Origin: The term strategy derives from the Greek word στρατηγία (stratēgia), translating to the office of general or command.
Historical perspective connects strategy to military planning, correlating to modern applications in business as precise planning practices.
Strategy as Action
Involves not just planning but executing flexible, goal-oriented actions to fulfill broader policy goals.
Emergent strategies arise from unplanned, organic decision-making and reflect an organization’s adaptive capacity. Henry Mintzberg highlighted this as strategic outcomes from multiple bottom-up decisions contributing to a fluid strategy framework.
Strategy as Integration
Alfred Chandler's view on strategy formulation stresses the alignment of long-term objectives, ensuring resource allocation complements strategy implementation.
Figure 1.3 The Essence of Strategy illustrates the process of intended vs. emergent strategies over time.
Strategic Positioning and Questions
Fundamental questions in strategy examine:
Why do firms differ?
How do firms behave?
What determines the scope of the firm?
What determines firm success or failure?
Each question is unpacked by various perspectives (historic, cultural, industry-specific).
Key Issues in Strategy Work
Areas of focus include:
Strategic thinking frameworks and techniques.
Procedures for strategy analysis.
Communication of developed strategies within organizations.
Corporate Social Responsibility (CSR)
Companies are gradually embracing responsibility that transcends shareholder interests:
Ethical reasons emphasizing sustainability.
Self-interest motives regarding corporate reputation and licensing to operate.
Application of Strategic Frameworks
PESTEL Framework:
Analyzes political, economic, social, technological, environmental, and legal factors impacting organizations.
Porter’s Five Forces Framework:
Evaluates competitive intensity and overall attractiveness of an industry.
Conclusion
Summary of core concepts discussed in the module includes understanding the essence and role of strategy, frameworks for macro-environment analysis, and preparation for continuing discussions on strategy in depth in upcoming sessions.