1 Flashcards
what is strategy?
long term direction and scope of an organisation- an advantage in a changing environment by order, resources and competencies to fulfilling stakeholder obligations.
what is a competency?
the way that an organisation uses or deploys its resources and capabilities.
what are the three levels of strategy?
1- corporate strategy
2- strategic business unit- SBU
3- operational strategy
where is corporate strategy determined ?
which is determined at main board level for the whole business
what is strategic business unit?
a section within a large business responsible for planning developing and producing and marketing its own products and services to compete within their particular markets.
what is operational strategy?
refers to the main functions within each SBU such as productions and finance etc. how they deliver the strategies effectively to compliment the strategiesis determined at corporate level
what is policy?
a set of rules made by an organisation to guide its decision making?
what is the rational model of strategy?
it is used to explain how an organisation determines strategy
what are the stages of rational model of strategy? how many are there?
3
1- analysing
2- choice
3- implementation
in the rational model of strategy what happens in stage 1
analysing- assessing the impact on organisations, strategic position and options by analysing organisations external environment for threats and opportunities and strategic purpose.
in the rational model of strategy what happens in stage 2
choice- identifying and evaluating alternative strategies and selecting the one to pursue and determine the way it will be achieved. e.g what products to continue/ discontinue
in the rational model of strategy what happens in stage 3
implementation- how strategies are put into action
- organisation needs to consider if the strategy is acceptable and feasible to key stakeholders
what is intended strategy?
strategy and organisation that is set after analysis and discussion which it will implement
- if full realised it becomes a deliberate strategy
( no change to strategy)
what is emergent strategy
when managers or directors of the SBU interpret the intended strategy and adapt it to changing external circumstances to take advantage of opportunities or mitigate threats
what is realised strategy
strategy that an organisation really follows
the product of the organisation’s- intended, deliberate, emergency strategies
what are the differences between private and public sector strategies?
- public- operate political rather market environment ( private is opposite)
- private - key is profitability but public is about accomplishing organisations mission and giving best service
3.private - important to provide value to shareholders/customers where the end user pays directly for goods and services - aka business value
BUT in public- the end user does not pay directly for services but would pay via tax for services- called public value
what is public value?
relates to the value an organisation contributes to society
what are mandates?
defined as what an organisation is formally/ informally required to do or not do by external authorities
what is globalisation?
refers to the many ways in which countries are connected by transactions beyond nation stay boundary e.g foreign exchange markets.
characteristics of globalisation
- globalisation services- e.g banking
- global financial markets- e.g international trading of financial assets and currencies
- multilateral agreements
- increased power of supranational organisations e.g the EU
layers of business environment
1- the macro- environment ( broad environmental factors that impact to a greater or lesser extent to organisations)
2- industry of sector- ( the organisation operates within, micro environment)
3-competitors
4- the organisation
3- markets
( numbers mean each layer)
what is pestle analysis ?
used to identify the broad environmental factors within the macro environment that impact an organisation positively or negatively
pestle stand for? ( external environment analysis)
P olitical factors- regulation, taxes
E conoomic factors- employment, interest rates
S ocial factors- demographic, age, population growth
T echnological factors - AI, benefits+limitations of tech
L egal factors- business, employment laws, data protection
E cological factors- climate change, disasters, pressure groups and consumer demands
what is scenario planning ( external environment analysis)
- useful tools for organisations where the high levels of uncertainty arising from complexity/ dynamism in external environment.
- it includes a detailed view of how the business environment of an organisation may develop in the future based on groupings of key environmental influences and drivers of change where theres a high levels of uncertainty
