Analysis of the Process of Strategy Formulation and Implementation in the Vattenfall Group
2015 (English)In: Towards sustainable African business development: integrating formal and informal business : peer-reviewed proceedings of the 16th IAABD annual conference / [ed] PD Rwelamila and Anita Spring, 2015Conference paper (Refereed)
Vattenfall’s vision is to be a leading European power company. Five strategic ambitions, which will serve as guidelines for decision-making and activity, have been formulated for the years 2006 – 2012. From Vattenfall’s five strategic directions, the area to ‘be number one for the customer’ is chosen for this project. The objective of this study, therefore, is to examine how the strategy formulated at the Corporate Group level of the company, interplays and aligns with requirements and targets set at the Business Group level and its implementation into concrete actions at the Business Unit level.
A case study approach was deemed a more appropriate methodological approach. Qualitative data drawn together from both primary and secondary sources of information was used to build the case study. Secondary data sources encompassed access to and analysis of company internal documents and literature review. Primary data sources were collected through communication in the form of open-ended in-depth interviews.
The research question is how aligned the process of strategy formulation and strategy making from the corporate level to the business unit level in the Vattenfall Group. The question was posed from the perspective of the levels of strategy. The study adopted Pettigrew’s conceptual model representing three formulation and implementation dimensions at which top managers are required to operate: the content, process and context of strategy. The process of strategy formulation and implementation in the Vattenfall Group is strictly influenced and controlled by top management with regards to the time schedule and approved content stipulated in group directive. The processes are continuously evaluated with checkpoints planned in for coordination and alignments. The strategy planning process guarantees alignment of the approved strategy at the different levels of strategy.
This study shows that the strategy process is complex involving different functions in the value chain. Bottom-up views are covered but the strategies that are finally formulated, resourced and implemented are those that are approved by top management. The managerial implications include reconciling and balancing inherent strategic tensions, adapting offers to attract customers as well as encouraging continuous learning and creating strategic learning processes.
Place, publisher, year, edition, pages
Strategy formulation, Implementation, content, process, context
Economics and Business
IdentifiersURN: urn:nbn:se:hig:diva-20058OAI: oai:DiVA.org:hig-20058DiVA: diva2:844220
16th International Academy of African Business Development (IAABD) Conference, Nairobi, Kenya, May 12-16, 2015
In press2015-08-042015-08-042017-01-12Bibliographically approved