1. The Strategy Process Flashcards

1
Q

What is strategy?

A

The direction and scope of an organisation over the long term, including the resources required to achieve a specific objective

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2
Q

What is a strategic plan?

A

A statement of long term goals along with a definition of the strategies and policies which will ensure achievement of these goals

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3
Q

What are the 3 different led approaches to strategy setting?

A
  1. Accounting led
  2. Market let
  3. Competence led
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4
Q

What are Johnson and Scholes 5 characteristics of strategic decisions?

A
  1. Long term direction
  2. Scope consideration
  3. Strategic fit
  4. Resources and competencies
  5. Influence of stakeholders
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5
Q

What does Porter say is the essence of formulating competitive strategy?

A

Relating a company to it’s environment

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6
Q

What are the 2 difficulties of objectives for not for profit organisations?

A
  1. There may be multiple
  2. They can be hard to measure
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7
Q

What are the 3 Es of a Value for Money objective?

A
  1. Economy - minimise cost
  2. Efficiency - right way
  3. Effectiveness - right things
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8
Q

What are the 3 ‘levels’ of strategy?

A
  1. Corporate
  2. Business
  3. Operational
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9
Q

What is corporate strategy concerned with?

A

The overall purpose and scope of the firm and how value will be added i.e. which business/market to enter

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10
Q

What are the 4 main examples of corporate strategy considerations?

A
  1. Geographical presence
  2. Products offered
  3. Competing on price or quality
  4. Resource allocation
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11
Q

What is business strategy concerned with?

A

How to compete successfully in particular markets, in particular the activities of SBUs

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12
Q

What is an SBU

A

A strategic business unit - a part of the org for which there is a distinct external market for goods or services (e.g. different geographies or different functionalities)

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13
Q

What are the 2 main examples of business strategy considerations?

A
  1. Which products in which particular markets
  2. How to gain competitive advantage in a particular market
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14
Q

What is operational strategy concerned with?

A

Ensuring the component parts of the organisation effectively deliver the corporate and business level strategies

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15
Q

What are the 4 main examples of operational strategy considerations?

A
  1. HR strategy
  2. Marketing strategy
  3. IT strategy
  4. Daily operations strategy
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16
Q

What are the 8 steps in the rational model of strategic planning?

A
  1. Set mission & objectives
  2. Analyse the environment
  3. Position audit
  4. Corporate appraisal
  5. Generate strategic options
  6. Evaluate and choose
  7. Implement change management
  8. Review & control
17
Q

How is rational planning orchestrated?

A

Strategic planning that is imposed from the top downwards

18
Q

What are the 2 issues with rational planning?

A

It can lack flexibility and be bureaucratic

19
Q

What are the 5 use conditions for rational planning?

A
  1. Large organisations
  2. Stable environments
  3. Clear sense of direction
  4. Long lead times
  5. Experienced staff at the top and less experience lower level staff
20
Q

What is logical incrementalism?

A

Guiding actions and events towards a conscious strategy in small scale steps - extending existing strategy, not coming up with a new one

21
Q

What are the 2 use conditions for logical incrementalism?

A
  1. Clear end goal
  2. Unsure best way to get there
22
Q

What is freewheeling opportunism?

A

Taking opportunities as they are, with little formal planning

23
Q

What type of organisation is best suited to freewheeling opportunism?

A

Small organisations

24
Q

What are emergent strategies?

A

Strategies which emerge over time as organisations innovate and respond to their market

25
Q

What are Mintzberg’s 5 roles of senior management under emergent strategies?

A
  1. Manage stability
  2. Detect discontinuity (environmental scanning)
  3. Know the business
  4. Manage patterns
  5. Reconcile change and continuity
26
Q

What are the 4 use conditions for emergent strategy?

A
  1. Good business knowledge
  2. Trusting culture
  3. Freedom to fail
  4. Time money and resources to explore and develop ideas
27
Q

What are Johnson and Scholes 3 elements of strategic management?

A
  1. Choice
  2. Implementation (+ control)
  3. Analysis
28
Q

What is the organisational ecosystem?

A

The concept that a business ecosystem is an economic community supported by a foundation of interacting organisations and individuals, who evolve together over time and align themselves to one direction. All members are strongly influenced by one another.