STRATEGY AND ORGANIZATION
THE KNOWLEDGE PACK
LEARNING OBJECTIVES OF THE COURSE:
1. To familiarize students with some of the main theoretical perspectives in the literature
on strategy and organization.
2. To train students in critically assessing these theoretical perspectives.
3. To train students in understanding the dilemmas that organizations may face when
applying strategy theory to practice.
4. To develop students’ abilities to formulate and express their own opinions and
arguments about the theory and practicalities of strategic management
OVERVIEW OF TOPICS PER WEEK
TOPICS
WEEK ASPECT SUBJECT
Week 1 Content Competitive strategy
Week 2 Content Corporate strategy
Week 3 Process Strategic planning
Week 4 Process Strategic-decision making
Week 5 Context Organization and context
Week 6 Context Strategy implementation and business in society
DEFINITIONS
MAIN DEFINITIONS OF THE COURSE
Bounded rationality The idea that rationality is limited by cognitive limitations of the
mind.
Breakdowns gaps between the change process we observe in an
organization and our mental model of how the chance process
should unfold.
Business sustainability The ability of firms to respond to their short-term financial
needs without compromising their (or others’) ability to meet
their future needs.
Cognition the mental action or process of acquiring knowledge and
understanding through thought, experience and senses.
Moreover, decision making is one of the basic cognitive
processes of human behaviour. A preferred option is chosen
from a set of alternatives based on certain criteria.
Competitive strategy Competitive strategy is the long term plan of a particular
company or business unit in order to gain competitive
advantage over its competitors in its industry. The central
, question is why some firms outcompete other firms and what
the sources are of their competitive advantage.
Contingency theory Assumes that the optimal course of action for an organization
is contingent (dependent) on the internal configuration of the
organization and the external situation (i.e. assumes a need for
a fit).
Contingency theory of The theory that suggest that successful strategy
implementation implementation will require different models of change based
upon the organizational environment.
Core competencies Core competencies are harmonized combination of multiple
resources and skills that distinguishes a firm in the
marketplace (Core competence -> core product -> end
product).
Corporate strategy the overall plan of a diversified company which defines the
overall goals and directions. The central questions are in which
business the corporation should be in and how the corporate
office should manage its portfolio of strategic business units
(SBU’s).
CSR Corporate Social Responsibility: taking responsibility for the
impact of the business on society
Deliberate strategy The organizational vision, goals and intentions of the
organization and communicated to the players who have to
make it operational
Disruption Disturbance or problems which interrupt an event, activity, or
process.
Diversification Diversification is a corporate strategy to enter a new market or
industry while creating a new product or service for that
particular new market.
Emergent strategy Consistencies which arise in organizational behaviour over
time, despite it was never intended.
Formal strategic The strategic planning process that involves explicit systematic
planning procedures and that requires involvement and commitment of
the most important stakeholders in the organization.
Garbage can The garbage can model is an irrational model of decision-
making, which assumes that problems, solutions and
participants are disconnected and exist as separate
organizational streams.
Hierarchical levels The structure of the organization using levels of authority and
responsibilities. Three levels: corporate level, business level
and functional level.
Incremental change A small, gradual chance.
Inertia A tendency to do nothing or to remain unchanged.
Innovation the application (i.e. use, commercialization) of new or improved
products, processes or practices.
Logical incrementalism A philosophy stating that strategies do not come into existence
based upon one time decision, but based upon smaller
decisions. Therefore, it is a step by step process of guiding
actions towards a conscious strategy.
Multidimensional form An organizational structure that tries to foster cooperation
between managers. Managers are given access to the same
, information and bonuses are given for corporate performance.
Organizational An organization's ability to be aligned and efficient in its
ambidexterity management of today's business demands (exploit) as well as
being adaptive to changes in the environment (explore) at the
same time.
Planned emergence A strategy formation process that both involves formal and
informal planning allowing for more flexibility and innovation.
Punctuated equilibrium Rapid changes in a certain period of time.
Remedies a solution to treatment for a certain event.
Resources All assets, capabilities, organizational processes, firm
attributes, information and knowledge controlled by an
organization that enable an organization to conceive of and
implement strategies that improve its efficiency and
effectiveness. Examples of resources are human capital,
physical capital and organizational capital.
Revolutionary Involving or causing a complete or dramatic change.
SCP Framework The structure, conduct and performance framework is model in
industrial-organizational economics which offers a causal
theoretical explanation for firm performance through economic
conduct on incomplete markets.
Short-termism Decisions and outcomes that pursue a course of action that is
best for the short term but suboptimal over the long run.
Strategic alliances A strategic alliance is an agreement between two or more
parties to pursue a set of agreed-upon objectives needed while
remaining independent organizations.
Strategic decision- the process in which a person needs to make a strategic
making decision based on more than one possible course of action.
The central question here is ‘how do strategies come into
being?
Strategic implementation The process that puts plans and strategies into action to reach
desired goals.
Strategic management The ongoing process of planning, monitoring, analysis and
assessment of all that is necessary for an organization to reach
its pre-set goals and objectives.
Strategic planning a disciplined and well-defined organizational effort aimed at the
complete specification of a firm’s strategy and the assignment
of responsibilities for its execution. The central question is how
organizations come up with a strategy that matters.
Strategic planning a disciplined and well-defined organizational effort aimed at the
complete specification of a firm’s strategy and the assignment
of responsibilities for its execution. The central question is how
organizations come up with a strategy that matters.
Strategically disclosing The phenomenon of sharing or keeping information from
information stakeholders intentionally.
Strategic-decision the process of decision making within an organization based
making upon the organizational mission, goals and objectives. This
involves a situation in which there is more than one possible
course of action. The central question is how decisions are
being made in an organization that matter.
Strategy The process of applying practical tactics in order to achieve
, pre-set organizational goals and objectives or to create
competitive advantage.
Strategy implementation The activities within an organization designed to manage the
activities associated with the developed strategic plan.
Sustainability Meets the needs of the present without compromising the
ability of future generations to meet their own needs.
Sustained competitive Organizational assets, attributes, or abilities that are difficult to
advantage duplicate or exceed and provide a superior or favourable long
term position over competitors.
The game theory A systematic approach to discover new strategies. It claims
that organization do not accept the game, but should try to
change the game and plan for that instead. The game theory is
therefore not suitable for planning but supports the thinking
that goes into the plan and is also a tool to think about
competitive strategic collaboration.
The standard model of The standard model of strategy is the three-step process in
strategy which strategic analysis is followed by strategic choice and
eventually strategic implementation.
THE KNOWLEDGE PACK
LEARNING OBJECTIVES OF THE COURSE:
1. To familiarize students with some of the main theoretical perspectives in the literature
on strategy and organization.
2. To train students in critically assessing these theoretical perspectives.
3. To train students in understanding the dilemmas that organizations may face when
applying strategy theory to practice.
4. To develop students’ abilities to formulate and express their own opinions and
arguments about the theory and practicalities of strategic management
OVERVIEW OF TOPICS PER WEEK
TOPICS
WEEK ASPECT SUBJECT
Week 1 Content Competitive strategy
Week 2 Content Corporate strategy
Week 3 Process Strategic planning
Week 4 Process Strategic-decision making
Week 5 Context Organization and context
Week 6 Context Strategy implementation and business in society
DEFINITIONS
MAIN DEFINITIONS OF THE COURSE
Bounded rationality The idea that rationality is limited by cognitive limitations of the
mind.
Breakdowns gaps between the change process we observe in an
organization and our mental model of how the chance process
should unfold.
Business sustainability The ability of firms to respond to their short-term financial
needs without compromising their (or others’) ability to meet
their future needs.
Cognition the mental action or process of acquiring knowledge and
understanding through thought, experience and senses.
Moreover, decision making is one of the basic cognitive
processes of human behaviour. A preferred option is chosen
from a set of alternatives based on certain criteria.
Competitive strategy Competitive strategy is the long term plan of a particular
company or business unit in order to gain competitive
advantage over its competitors in its industry. The central
, question is why some firms outcompete other firms and what
the sources are of their competitive advantage.
Contingency theory Assumes that the optimal course of action for an organization
is contingent (dependent) on the internal configuration of the
organization and the external situation (i.e. assumes a need for
a fit).
Contingency theory of The theory that suggest that successful strategy
implementation implementation will require different models of change based
upon the organizational environment.
Core competencies Core competencies are harmonized combination of multiple
resources and skills that distinguishes a firm in the
marketplace (Core competence -> core product -> end
product).
Corporate strategy the overall plan of a diversified company which defines the
overall goals and directions. The central questions are in which
business the corporation should be in and how the corporate
office should manage its portfolio of strategic business units
(SBU’s).
CSR Corporate Social Responsibility: taking responsibility for the
impact of the business on society
Deliberate strategy The organizational vision, goals and intentions of the
organization and communicated to the players who have to
make it operational
Disruption Disturbance or problems which interrupt an event, activity, or
process.
Diversification Diversification is a corporate strategy to enter a new market or
industry while creating a new product or service for that
particular new market.
Emergent strategy Consistencies which arise in organizational behaviour over
time, despite it was never intended.
Formal strategic The strategic planning process that involves explicit systematic
planning procedures and that requires involvement and commitment of
the most important stakeholders in the organization.
Garbage can The garbage can model is an irrational model of decision-
making, which assumes that problems, solutions and
participants are disconnected and exist as separate
organizational streams.
Hierarchical levels The structure of the organization using levels of authority and
responsibilities. Three levels: corporate level, business level
and functional level.
Incremental change A small, gradual chance.
Inertia A tendency to do nothing or to remain unchanged.
Innovation the application (i.e. use, commercialization) of new or improved
products, processes or practices.
Logical incrementalism A philosophy stating that strategies do not come into existence
based upon one time decision, but based upon smaller
decisions. Therefore, it is a step by step process of guiding
actions towards a conscious strategy.
Multidimensional form An organizational structure that tries to foster cooperation
between managers. Managers are given access to the same
, information and bonuses are given for corporate performance.
Organizational An organization's ability to be aligned and efficient in its
ambidexterity management of today's business demands (exploit) as well as
being adaptive to changes in the environment (explore) at the
same time.
Planned emergence A strategy formation process that both involves formal and
informal planning allowing for more flexibility and innovation.
Punctuated equilibrium Rapid changes in a certain period of time.
Remedies a solution to treatment for a certain event.
Resources All assets, capabilities, organizational processes, firm
attributes, information and knowledge controlled by an
organization that enable an organization to conceive of and
implement strategies that improve its efficiency and
effectiveness. Examples of resources are human capital,
physical capital and organizational capital.
Revolutionary Involving or causing a complete or dramatic change.
SCP Framework The structure, conduct and performance framework is model in
industrial-organizational economics which offers a causal
theoretical explanation for firm performance through economic
conduct on incomplete markets.
Short-termism Decisions and outcomes that pursue a course of action that is
best for the short term but suboptimal over the long run.
Strategic alliances A strategic alliance is an agreement between two or more
parties to pursue a set of agreed-upon objectives needed while
remaining independent organizations.
Strategic decision- the process in which a person needs to make a strategic
making decision based on more than one possible course of action.
The central question here is ‘how do strategies come into
being?
Strategic implementation The process that puts plans and strategies into action to reach
desired goals.
Strategic management The ongoing process of planning, monitoring, analysis and
assessment of all that is necessary for an organization to reach
its pre-set goals and objectives.
Strategic planning a disciplined and well-defined organizational effort aimed at the
complete specification of a firm’s strategy and the assignment
of responsibilities for its execution. The central question is how
organizations come up with a strategy that matters.
Strategic planning a disciplined and well-defined organizational effort aimed at the
complete specification of a firm’s strategy and the assignment
of responsibilities for its execution. The central question is how
organizations come up with a strategy that matters.
Strategically disclosing The phenomenon of sharing or keeping information from
information stakeholders intentionally.
Strategic-decision the process of decision making within an organization based
making upon the organizational mission, goals and objectives. This
involves a situation in which there is more than one possible
course of action. The central question is how decisions are
being made in an organization that matter.
Strategy The process of applying practical tactics in order to achieve
, pre-set organizational goals and objectives or to create
competitive advantage.
Strategy implementation The activities within an organization designed to manage the
activities associated with the developed strategic plan.
Sustainability Meets the needs of the present without compromising the
ability of future generations to meet their own needs.
Sustained competitive Organizational assets, attributes, or abilities that are difficult to
advantage duplicate or exceed and provide a superior or favourable long
term position over competitors.
The game theory A systematic approach to discover new strategies. It claims
that organization do not accept the game, but should try to
change the game and plan for that instead. The game theory is
therefore not suitable for planning but supports the thinking
that goes into the plan and is also a tool to think about
competitive strategic collaboration.
The standard model of The standard model of strategy is the three-step process in
strategy which strategic analysis is followed by strategic choice and
eventually strategic implementation.
