DSGM Lecture 1.1. Introduction to strategy

Introducing Strategy.

Strategic analysis 1: Development & concepts DSGM (Lecture 1.1) Dr Elvira Bolat C113, Christchurch House, Talbot campus ebolat@bournemouth.ac.uk @Elvira_Mlady

This week: Outline Lecture 1.1: Introduction to DSGM – Unit introduction – Strategic analysis 1 – What is strategy?

Lecture 1.2: Assessment briefing – Exam: overview – Assignment briefing – Summary for the week – Next week’s seminar preparation

Learning Outcomes 1. Introduce the tutors and the unit 2. Define strategy and identify its key characteristics 3. Examine marketing strategy in context and its importance to organisations 4. Understand what is meant by strategy development & the approach we will be taking

1. Introductions

The unit aims to enable students to develop, assess and implement marketing strategies at corporate and operational marketing levels in a global organisational context.

Unit programme

In-class engagement: Lectures & seminars/workshops • Lectures

– Topic presentation – In-class activities: i.e. quizzes, discussions

• Seminars/workshops

– Group work – Case study analysis – Student group presentations – Student-led discussions – Class debates

Recommended reading – Reading List accessible via myBU • Core texts • Recommended texts & journal articles • Specific topic journal articles • Your own wider reading • Weekly reading guide in the Unit Guide (section 8.1.)

Revisiting your knowledge:

What is Marketing? (you ideas!)

What is Strategy? or Scan: Type in: https://padlet.com/ebolat/5z9rpl8fdw8b

2. Definitions of strategy “..the long-term direction of an organisation” Johnson et al., 2014 “…a pattern in a stream of decisions” Mintzberg, 2008

Definitions of strategy

“Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value�

Porter, 1996

What is strategy?

Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations Johnson et al., 2017

Key Characteristics SCOPE ANALYSIS

OPTIONS / CHOICES

IMPLEMENTATION

3. Marketing strategy in context Corporate Strategy

Purpose, Scope, Mission and Direction

Marketing Strategy

Marketplace, core strategy, positioning, and competitive advantage

Marketing Plan

Marketing mix, budgeting, implementation and control

The challenge!

• Real challenge for many firms to pay more than ‘lip service’ to marketing: ‘’Relatively few companies have succeeded in moving beyond the ‘marketing’ trappings of advertising, short – term sales growth and flamboyant innovation to achieve the substance of a robust marketing strategy that produces long term performance and strong shareholder value’’ - Doyle 1997

• Requirement to understand what is required to achieve sustainable, long term competitive position in the marketplace, which will yield profit and shareholder value: This will ‘’certainly involve developing a marketing strategy that is based on a profound understanding of the marketplace to define a competitive position….continuous process of learning and improvement in customer value….competing through new business models….successful management of implementation of marketing strategy’’ - Hooley et al. 2017

Why is Strategy important? ! Focuses on major issues affecting the company’s future ! Errors in corporate strategy can put the company’s survival at risk ! Involves the entire organization ! Should ensure long term survival ! Provides a focus at different levels of strategy ! Ensures the organisation is in touch with environment ! It should add value in comparison to competition

4. Key elements of strategy Strategic marketing management includes assessing the strategic position of a organisation, making strategic decisions for the future, and managing strategy in action.

In practice this means you: - Analyse or audit - Make decisions - Implement & control

Strategic framework The Strategic Position

Strategic Decisions

Strategy Implementation

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Analysis of strategic position

The strategic position is concerned with the impact on strategy of the external environment, the organisation’s strategic capability (resources and competences), the organisation’s goals and the organisation’s culture.

WHERE ARE WE NOW….SO WHAT

Strategic position

Environment

Capability

The Strategic Position

Culture

Purpose

Fundamental questions for Strategic Position: • What are the environmental opportunities and threats?

• What are the organisation’s strengths and weaknesses?

• What is the basic purpose of the organisation?

• How does culture shape strategy?

Strategic decisions Strategic decisions involve the options for strategy in terms of both the directions in which strategy might move and the methods by which strategy might be pursued.

Strategic decisions

Business units

Domestic vs International

Strategic Decisions

Innovation - Brand - Product - Services

Acquisitions & Alliances

Fundamental questions for Strategic Decisions: • How should business units compete?

• Which businesses to include in the portfolio?

• Where should the organisation compete internationally?

• Is the organisation innovating appropriately?

• Should the organisation buy other companies, form alliances or do it alone?

Strategy implementation Strategy in action is about how strategies are formed and how they are implemented.

The emphasis is on the practicalities of managing.

Strategy implementation Internal communication Organising

Strategy Implementation

Changing

Evaluating

Practice

Fundamental questions for implementation of strategy: • Which strategies are suitable, acceptable and feasible? • What are the required organisation structures and systems?

2 Perspectives on Strategising Process

Review

References Doyle, P. 1997. ‘Go for robust growth’, Marketing Business, April, 53.

Hooley, G., Piercy, N.F. & Nicoulaud, B. 2017. Marketing Strategy & Competitive Positioning, 6th ed. Harlow: FT Prentice Hall.

Johnson, G., Whittington, R., Scholes, K., Angwin, D. and Regner, P. 2017. Exploring Strategy, 11th ed. London: Pearson Education.

Mintzberg, H. 2008. Strategy safari: the complete guide through the wilds of strategic management, 2nd ed. London: Pearson Education.

Porter, M. E 1996. ‘What is a strategy?’ Harvard Business Review November-December, 61-78.