CPA Global Strategy and Leadership (GSL)
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t Condensed Study Notes for Semester 1, 2025
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written by t
matthewdcruz96
www.stuvia.com
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CPA Global Strategy and Leadership (GSL) Study Notes:
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Module 1 – An Introduction to Strategy and Leadership: t t t t t t t t
1.1 : Introducing Strategy and Leadership (p.3)
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Strategy: Those decisions that have high medium-term to long-term impact on the activities
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of the organisation, including analysis leading to the resourcing and implementation of those
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decisions, to create value for key stakeholders and to outperform competitors.
t t t t t t t t t t t
The Evolution of Strategy (p.4):
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‘Strategy’ derives from the Greek word strategos, meaning the art of planning and
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conducting a war.
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While often involving competition, strategy can also involve cooperation between
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competitors to achieve mutually beneficial outcomes.
t t t t t t
1.2 : The Strategy Process (p.6):
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The Rational Approach to Strategy (p.8)
t t t t t
The Rational Approach to Strategy: Based on a linear and mechanistic model, in which the
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conception and execution of strategy are treated as discrete, sequential activities
t t t t t t t t t t t
It involves systematically comparing external and internal contexts, adopting a particular
t t t t t t t t t t
position to achieve future goals and expressing that in a recognisable form, such as a vision.
t t t t t t t t t t t t t t t t
This approach also selects options on the basis of their relative merit and allows
t t t t t t t t t t t t t
implementation to be designed on the basis of clear and well- supported statements.
t t t t t t t t t t t t t
Chandler (1962) defined strategy as a process made up of 2 chronological activities:
t t t t t t t t t t t t
1. Setting the basic, long-term goals of an organisation, implementing courses of action t t t t t t t t t t t
2. Allocating the resources necessary to achieve those goals. t t t t t t t
The rational approach to strategy provides a logical process of analysis and evaluation:
t t t t t t t t t t t t
1. Provides a way of talking, analysing and organising a complex set of issues t t t t t t t t t t t t
2. Is a means of communication and legitimisation to stakeholders
t t t t t t t t
3. Is useful as an organising framework to analyse and plan strategy
t t t t t t t t t t
The strategy process involves:
t t t
o Agreeing the strategy context t t t
o Analysing the operating and competitive environment t t t t t
o Assessing current performance against goals t t t t
o Identifying and developing options for growth t t t t t
o Evaluating and selecting options and updating the strategy – implementing and t t t t t t t t t t
monitoring outcomes. t t
In order to overcome the shortcomings of the rational approach to strategy development,
t t t t t t t t t t t t
leaders should provide the ability to iterate through using rules and processes that are
t t t t t t t t t t t t t t
robust but not so rigid that they do not allow for flexibility and modification of the strategy.
t t t t t t t t t t t t t t t t t
Rational Approach to Strategy
t t t Processual approach to strategy t t t
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Strategy Development in Practice (p.10):
t t t t
Strategic management is an ongoing and dynamic process that requires constant monitoring
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and adjustment.
t t
The execution of strategy and the resulting performance needs to be evaluated to ensure
t t t t t t t t t t t t t
operations are on track.
t t t t
The nature of a true competitive strategy involves performing activities differently, or to
t t t t t t t t t t t t
perform different activities from one’s competitors. t t t t t
Converting strategic plans into actions and results tests a manager’s ability to direct
t t t t t t t t t t t t
organizational change, motivate people, build and strengthen company competencies and
t t t t t t t t t t
competitive capabilities, create and nurture a strategy-supportive work climate, and meet or
t t t t t t t t t t t t
beat performance targets.
t t t
While the rational approach is presented as a linear, step-by-step approach the process is
t t t t t t t t t t t t t
iterative and interdependent.
t t t
Activities undertaken later in the process may lead to the need for change in the earlier
t t t t t t t t t t t t t t t
steps (E.g. Obstacles may occur that prevent implementation of the strategy, thus it might
t t t t t t t t t t t t t t
be necessary to consider a completely new direction and develop an updated strategy)
t t t t t t t t t t t t t
Leaders and managers need to: t t t t
o Be sensitive to the environment for new ideas and challenges t t t t t t t t t
o Create context rather than plans, to encourage innovation and variety t t t t t t t t t
o Tolerate imperfection t
o Appreciate that the process of strategy is rarely a purely linear process, even if it t t t t t t t t t t t t t t
makes it easier to act as if it is t t t t t t t t t
o Be prepared to regularly review the performance of the strategy t t t t t t t t t
o Be prepared to refine/modify the strategy if it becomes evident change is required
t t t t t t t t t t t t
o Keep rules simple and build adaptive tension in other words, provide sufficient order t t t t t t t t t t t t
to make things happen, but not stifle people with rigid controls.
t t t t t t t t t t t
Strategy can therefore be understood as both planned and emergent, representing a pattern
t t t t t t t t t t t t
of decisions intended to improve the performance and competitive position of the
t t t t t t t t t t t t
organisation (E.g. Amazon’s planning, prioritisation and benchmarking process)
t t t t t t t t
1.3 : Gaining a Competitive Advantage (p.12):
t t t t t
Competitive advantage is the ability of an organisation to outperform its competitors and
t t t t t t t t t t t t
make more profits than its competitors do from an equivalent set of activities (E.g. Doing
t t t t t t t t t t t t t t t
things in a different way)
t t t t t
It can do this by being more efficient than competitors or undertaking different activities
t t t t t t t t t t t t t
that allow it to charge higher prices or gain more market share and brand loyalty.
t t t t t t t t t t t t t t t
Where data can create networks, it can create competitive advantage (e.g. Google maps
t t t t t t t t t t t t
provides real time traffic data, road conditions and travel times unlike its competitors)
t t t t t t t t t t t t t
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Distribution tof tthis tdocument tis tillegal extra tper tyear?
, Stuvia.com t- tThe tMarketplace tto tBuy tand tSell tyour tStudy tMaterial
The ubiquity of the Internet challenges the activities that many established companies have
t t t t t t t t t t t t
considered as central to their businesses, as they are offered by new, specialised
t t t t t t t t t t t t t
competitors that are better, faster, and more efficient products, services and solutions in
t t t t t t t t t t t t t
their area of focus.
t t t t
It is critically important for organisations to understand that what has set them apart from
t t t t t t t t t t t t t t
competitors at one point in time will become commonplace and less valuable over time.
t t t t t t t t t t t t t t
The challenge for firms is how to respond before and when this happens and why
t t t t t t t t t t t t t t
organisational speed, agility and innovation are key for growth and competitiveness.
t t t t t t t t t t t
Purpose and Strategy (p.13):
t t t
‘Creating new markets’, ‘serving broader stakeholder needs’ and ‘changing the rules of the
t t t t t t t t t t t t
game’ are strategies commonly used by high-growth organisations.
t t t t t t t t
A company’s purpose extends the focus of the organisation across a network of connected
t t t t t t t t t t t t t
interests and relationships
t t t
Their research suggests that competing based on current competitive conditions means that
t t t t t t t t t t t
competitive advantage becomes commoditised and found that high-growth companies
t t t t t t t t t
avoid limiting themselves in this way; instead they pursue opportunities that are consistent
t t t t t t t t t t t t t
with their purpose (E.g. Mars Petcare – Pedigree)
t t t t t t t t
Downloaded tby: tjaydeepbrahmbhatt t| Want tto tearn t$1.236
Distribution tof tthis tdocument tis tillegal extra tper tyear?
t t t t t
t Condensed Study Notes for Semester 1, 2025
t t t t t t
written by t
matthewdcruz96
www.stuvia.com
Downloaded tby: tjaydeepbrahmbhatt t| Want tto tearn t$1.236
Distribution tof tthis tdocument tis tillegal extra tper tyear?
, Stuvia.com t- tThe tMarketplace tto tBuy tand tSell tyour tStudy tMaterial
CPA Global Strategy and Leadership (GSL) Study Notes:
t t t t t t t
Module 1 – An Introduction to Strategy and Leadership: t t t t t t t t
1.1 : Introducing Strategy and Leadership (p.3)
t t t t t
Strategy: Those decisions that have high medium-term to long-term impact on the activities
t t t t t t t t t t t t
of the organisation, including analysis leading to the resourcing and implementation of those
t t t t t t t t t t t t t
decisions, to create value for key stakeholders and to outperform competitors.
t t t t t t t t t t t
The Evolution of Strategy (p.4):
t t t t
‘Strategy’ derives from the Greek word strategos, meaning the art of planning and
t t t t t t t t t t t t
conducting a war.
t t t
While often involving competition, strategy can also involve cooperation between
t t t t t t t t t
competitors to achieve mutually beneficial outcomes.
t t t t t t
1.2 : The Strategy Process (p.6):
t t t t
The Rational Approach to Strategy (p.8)
t t t t t
The Rational Approach to Strategy: Based on a linear and mechanistic model, in which the
t t t t t t t t t t t t t t
conception and execution of strategy are treated as discrete, sequential activities
t t t t t t t t t t t
It involves systematically comparing external and internal contexts, adopting a particular
t t t t t t t t t t
position to achieve future goals and expressing that in a recognisable form, such as a vision.
t t t t t t t t t t t t t t t t
This approach also selects options on the basis of their relative merit and allows
t t t t t t t t t t t t t
implementation to be designed on the basis of clear and well- supported statements.
t t t t t t t t t t t t t
Chandler (1962) defined strategy as a process made up of 2 chronological activities:
t t t t t t t t t t t t
1. Setting the basic, long-term goals of an organisation, implementing courses of action t t t t t t t t t t t
2. Allocating the resources necessary to achieve those goals. t t t t t t t
The rational approach to strategy provides a logical process of analysis and evaluation:
t t t t t t t t t t t t
1. Provides a way of talking, analysing and organising a complex set of issues t t t t t t t t t t t t
2. Is a means of communication and legitimisation to stakeholders
t t t t t t t t
3. Is useful as an organising framework to analyse and plan strategy
t t t t t t t t t t
The strategy process involves:
t t t
o Agreeing the strategy context t t t
o Analysing the operating and competitive environment t t t t t
o Assessing current performance against goals t t t t
o Identifying and developing options for growth t t t t t
o Evaluating and selecting options and updating the strategy – implementing and t t t t t t t t t t
monitoring outcomes. t t
In order to overcome the shortcomings of the rational approach to strategy development,
t t t t t t t t t t t t
leaders should provide the ability to iterate through using rules and processes that are
t t t t t t t t t t t t t t
robust but not so rigid that they do not allow for flexibility and modification of the strategy.
t t t t t t t t t t t t t t t t t
Rational Approach to Strategy
t t t Processual approach to strategy t t t
Downloaded tby: tjaydeepbrahmbhatt t| Want tto tearn t$1.236
Distribution tof tthis tdocument tis tillegal extra tper tyear?
, Stuvia.com t- tThe tMarketplace tto tBuy tand tSell tyour tStudy tMaterial
Strategy Development in Practice (p.10):
t t t t
Strategic management is an ongoing and dynamic process that requires constant monitoring
t t t t t t t t t t t
and adjustment.
t t
The execution of strategy and the resulting performance needs to be evaluated to ensure
t t t t t t t t t t t t t
operations are on track.
t t t t
The nature of a true competitive strategy involves performing activities differently, or to
t t t t t t t t t t t t
perform different activities from one’s competitors. t t t t t
Converting strategic plans into actions and results tests a manager’s ability to direct
t t t t t t t t t t t t
organizational change, motivate people, build and strengthen company competencies and
t t t t t t t t t t
competitive capabilities, create and nurture a strategy-supportive work climate, and meet or
t t t t t t t t t t t t
beat performance targets.
t t t
While the rational approach is presented as a linear, step-by-step approach the process is
t t t t t t t t t t t t t
iterative and interdependent.
t t t
Activities undertaken later in the process may lead to the need for change in the earlier
t t t t t t t t t t t t t t t
steps (E.g. Obstacles may occur that prevent implementation of the strategy, thus it might
t t t t t t t t t t t t t t
be necessary to consider a completely new direction and develop an updated strategy)
t t t t t t t t t t t t t
Leaders and managers need to: t t t t
o Be sensitive to the environment for new ideas and challenges t t t t t t t t t
o Create context rather than plans, to encourage innovation and variety t t t t t t t t t
o Tolerate imperfection t
o Appreciate that the process of strategy is rarely a purely linear process, even if it t t t t t t t t t t t t t t
makes it easier to act as if it is t t t t t t t t t
o Be prepared to regularly review the performance of the strategy t t t t t t t t t
o Be prepared to refine/modify the strategy if it becomes evident change is required
t t t t t t t t t t t t
o Keep rules simple and build adaptive tension in other words, provide sufficient order t t t t t t t t t t t t
to make things happen, but not stifle people with rigid controls.
t t t t t t t t t t t
Strategy can therefore be understood as both planned and emergent, representing a pattern
t t t t t t t t t t t t
of decisions intended to improve the performance and competitive position of the
t t t t t t t t t t t t
organisation (E.g. Amazon’s planning, prioritisation and benchmarking process)
t t t t t t t t
1.3 : Gaining a Competitive Advantage (p.12):
t t t t t
Competitive advantage is the ability of an organisation to outperform its competitors and
t t t t t t t t t t t t
make more profits than its competitors do from an equivalent set of activities (E.g. Doing
t t t t t t t t t t t t t t t
things in a different way)
t t t t t
It can do this by being more efficient than competitors or undertaking different activities
t t t t t t t t t t t t t
that allow it to charge higher prices or gain more market share and brand loyalty.
t t t t t t t t t t t t t t t
Where data can create networks, it can create competitive advantage (e.g. Google maps
t t t t t t t t t t t t
provides real time traffic data, road conditions and travel times unlike its competitors)
t t t t t t t t t t t t t
Downloaded tby: tjaydeepbrahmbhatt t| Want tto tearn t$1.236
Distribution tof tthis tdocument tis tillegal extra tper tyear?
, Stuvia.com t- tThe tMarketplace tto tBuy tand tSell tyour tStudy tMaterial
The ubiquity of the Internet challenges the activities that many established companies have
t t t t t t t t t t t t
considered as central to their businesses, as they are offered by new, specialised
t t t t t t t t t t t t t
competitors that are better, faster, and more efficient products, services and solutions in
t t t t t t t t t t t t t
their area of focus.
t t t t
It is critically important for organisations to understand that what has set them apart from
t t t t t t t t t t t t t t
competitors at one point in time will become commonplace and less valuable over time.
t t t t t t t t t t t t t t
The challenge for firms is how to respond before and when this happens and why
t t t t t t t t t t t t t t
organisational speed, agility and innovation are key for growth and competitiveness.
t t t t t t t t t t t
Purpose and Strategy (p.13):
t t t
‘Creating new markets’, ‘serving broader stakeholder needs’ and ‘changing the rules of the
t t t t t t t t t t t t
game’ are strategies commonly used by high-growth organisations.
t t t t t t t t
A company’s purpose extends the focus of the organisation across a network of connected
t t t t t t t t t t t t t
interests and relationships
t t t
Their research suggests that competing based on current competitive conditions means that
t t t t t t t t t t t
competitive advantage becomes commoditised and found that high-growth companies
t t t t t t t t t
avoid limiting themselves in this way; instead they pursue opportunities that are consistent
t t t t t t t t t t t t t
with their purpose (E.g. Mars Petcare – Pedigree)
t t t t t t t t
Downloaded tby: tjaydeepbrahmbhatt t| Want tto tearn t$1.236
Distribution tof tthis tdocument tis tillegal extra tper tyear?
