Fundamentals that needs to be known in creating strategy

1. Importance of Creating
Strategy for Your
OrganizationBY
Angela Ihunweze(Mrs)
+234 080 33 28 03 53

2. Table of contents
 What exactly is strategy?
 Fundamentals of strategy
 Strategy at Different Levels of a
Business
 The impact of strategy in the
organization
 Key Stakeholders and Participants in the
Strategic Process
 Key Stakeholders and Participants in the
Strategic Process part 2
 Exercise for you

3. What exactly is strategy?
According to Johnson and
Scholes in their description of
strategy in their publication
(Exploring Corporate Strategy)
it is defined as follows:
“The direction and scope of an
organisation over the long-
term: which achieves advantage
for the organisation through
its configuration of resources
within a challenging
environment, to meet the needs
of markets and to fulfill
stakeholder expectations"

4. Fundamentals of strategy
Strategy addresses the following fundamentals:
 Where is the business trying to get to in the long-term
(direction)
 Which markets should the business compete in and what kind
of activities are involved in such markets? (markets;
scope)
 How can the business perform better than the competition
in those markets? (advantage)?
 What resources (skills, assets, finance, relationships,
technical competence, facilities) are required in order to
be able to compete? (resources)?
 What external, environmental factors affect the
businesses' ability to compete? (environment)?
 What are the values and expectations of those who have
power in and around the business? (stakeholders)

5. Strategy at Different Levels of a Business
Strategies exist at several levels in any
organization - ranging from the overall
business (or group of businesses) through to
individuals working in it.
 Corporate Strategy - is concerned with the
overall purpose and scope of the business to
meet stakeholder expectations. This is a
crucial level since it is heavily influenced by
investors in the business and acts to guide
strategic decision-making throughout the
business. Corporate strategy is often stated
explicitly in a "mission statement".
 Business Unit Strategy - is concerned more with
how a business competes successfully in a
particular market. It concerns strategic
decisions about choice of products, meeting
needs of customers, gaining advantage over
competitors, exploiting or creating new
opportunities etc.
 Operational Strategy - is concerned with how
each part of the business is organized to
deliver the corporate and business-unit level
strategic direction. Operational strategy
therefore focuses on issues of resources,
processes, people etc.

6. The impact of strategy in the organization
 leads to action
 builds a shared vision that is values-based
 is an inclusive, participatory process in
which board and staff take on a shared
ownership
 accepts accountability to the community
 is externally focused and sensitive to the
organization's environment
 is based on quality data
 requires an openness to questioning the
status quo
 is a key part of effective management.

7. Key Stakeholders and Participants in the
Strategic Process
Strategic planning phase
Who should be involved?
 Planning the process; The
management team of the
project or organization.
 Understanding the context;
All staff and Board
members: Administrative
staff should be involved
if it is important for
them to understand the
organization's issues and
problems.

8. Key Stakeholders and
Participants in the Strategic
Process part 2
 Vision, values and mission discussion; All staff and Board
members. It is very important to involve all staff, including
administrative staff in this discussion as it is likely to
provide a set of
operating principles – in other words, to
make it clear why people who work in
the project or organization are expected to work and behave
in a certain way.
 Review of strengths and weaknesses opportunities and threats;
Programme or professional staff for the whole of this
process; include administrative staff in the discussions
around internal strengths and weaknesses. Discussion of
strategic options and
goals. Professional staff and Board members.
 Organizational structure; The management team with input from
the rest of the staff

9. Exercise for you
What is your contribution
in creating strategy
---------------------------
--------------------------
--------------------------
--------------------------
--------------------------
--------------------------
------------------------
Send it to me
angelaitambo74@yahoo.com