1. The Strategy Process Flashcards
What is strategy?
The direction and scope of an organisation over the long term, including the resources required to achieve a specific objective
What is a strategic plan?
A statement of long term goals along with a definition of the strategies and policies which will ensure achievement of these goals
What are the 3 different led approaches to strategy setting?
- Accounting led
- Market let
- Competence led
What are Johnson and Scholes 5 characteristics of strategic decisions?
- Long term direction
- Scope consideration
- Strategic fit
- Resources and competencies
- Influence of stakeholders
What does Porter say is the essence of formulating competitive strategy?
Relating a company to it’s environment
What are the 2 difficulties of objectives for not for profit organisations?
- There may be multiple
- They can be hard to measure
What are the 3 Es of a Value for Money objective?
- Economy - minimise cost
- Efficiency - right way
- Effectiveness - right things
What are the 3 ‘levels’ of strategy?
- Corporate
- Business
- Operational
What is corporate strategy concerned with?
The overall purpose and scope of the firm and how value will be added i.e. which business/market to enter
What are the 4 main examples of corporate strategy considerations?
- Geographical presence
- Products offered
- Competing on price or quality
- Resource allocation
What is business strategy concerned with?
How to compete successfully in particular markets, in particular the activities of SBUs
What is an SBU
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)
What are the 2 main examples of business strategy considerations?
- Which products in which particular markets
- How to gain competitive advantage in a particular market
What is operational strategy concerned with?
Ensuring the component parts of the organisation effectively deliver the corporate and business level strategies
What are the 4 main examples of operational strategy considerations?
- HR strategy
- Marketing strategy
- IT strategy
- Daily operations strategy