ACCA SBL Syllabus C. Strategy - What is Strategy? - Notes ^{1 / 10}

What is strategy?

• Long Term Direction

  This “long term” will depend on the different organisations and the different industries.

  It is not the same for all. 

  However, it will be at least a year and is difficult to change once the path has been chosen.

  The direction will depend on the desired position within their environment. Niche? Traditional?

  This, in turn, will depend on the external conditions of the organisation

• Gives an Advantage to the stakeholders 

  Meaning it builds upon what the organisation is good at and utilises its strengths. 

  However, this all must be in a direction that is agreeable and acceptable to its stakeholders. 

  Their influence is very important in deciding upon strategy.

  This, therefore, is looking within, rather than outside as above, the organisation.

Let’s now quickly look at some words you need to get used to from the very beginning…

• Strategic Fit 

  Tailoring the strategy to take advantage of the environment’s opportunities

• Strategic stretch

  Stretching competencies to create new opportunities 
  eg. Apple - computers to music to phones to iPads to TVs?

• Strategic architecture 
  
  Logistics of buying and servicing - Ikea buildings and processes, Amazon ease of purchase

Strategies require:

1. Major resource control

2. Operational changes - different markets and cultures

3. Beliefs of those with most influence