1. What is Strategy Flashcards
Definition of Strategy:
Strategy is the determination of the basic goals and objectives of an enterprise. and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.
Goal of Strategy:
The goal of the strategy of a company is to secure competitive advantage. which secures the survival of a company.
Mission Statement:
A mission statement aims to provide employees and stakeholders with clarity about what the organization is fundamentally there to do.
Vision Statements:
A vision statement is concerned with the future the organization seeks to create.
Statement of Corporate Values:
Communicates the underlying and enduring core values that guide an organization’s strategy and define the way that the organization should operate.
Strategic Management Process:
Involves analysis (External/Internal). formulation(development/evaluation). and implementation of strategies (design/motivation/control).
Define the goal of strategy for a company and explain why it is important.
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Differentiate between mission statements and vision statements. and provide examples of each.
Mission: what organization is fundamentally here to do. Vision: Futurethe organization seeks to create.
Explain the strategic management process and its key components.
Involves analysis (External/Internal). formulation (development/evaluation). and implementation of strategies (design/motivation/control).
Discuss the relationship between company owners and management in terms of governance.
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Describe the TOWS Matrix and provide a hypothetical example of its application.
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Different Levels of Strategy:
Corporate strategy. Corporate strategy identifies and defines the businesses the company should be in. business strategy sets priorities for resource allocation (how to compete). and functional strategy translates business strategy into functional strategy.(implementation)
Strategic Position:
Concerned with the impact on strategy of the external environment. the strategic capability (resources and competences). and the culture.
Definition of Strategic Choices:
Involves the options for strategy in terms of both the directions in which strategy might move and the methods by which strategy might be pursued.
Strategy in Action:
Focuses on how strategies are implemented. including the practicalities of managing. required organization structures and systems. and managing the change needed.
Discuss the TOWS Matrix in detail and provide a hypothetical example of its application in a strategic management context.
TOWS Matrix Components
Strengths (S): Internal capabilities and resources that provide an advantage over competitors.
Weaknesses (W): Internal limitations or deficiencies that create disadvantages.
Opportunities (O): External factors or situations that can be leveraged for growth or improvement.
Threats (T): External factors or situations that could harm the organization’s performance.
TOWS Strategies
SO Strategies (Strengths-Opportunities):
Utilize internal strengths to capitalize on external opportunities.
WO Strategies (Weaknesses-Opportunities):
Improve internal weaknesses by leveraging external opportunities.
ST Strategies (Strengths-Threats):
Use internal strengths to mitigate or avoid external threats.
WT Strategies (Weaknesses-Threats):
Develop **defensive plans **to prevent internal weaknesses from being exposed to external threats.
Explain the fundamental questions for strategic position and how they contribute to strategic decision-making.
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Describe the process of strategic choice and provide examples of strategic choices that organizations might make.
directions and methods, e.g. Innovation, Alliances/Aquisitions, International
Discuss the fundamental questions for strategy in action and how they contribute to successful strategy implementation.
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Explain the key takeaways from the strategic management script and how they contribute to effective strategic management in organizations.
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ESG:ESG: Environmental/social/and governance
a framework designed to be embedded into an organization’s strategy that considers the needs and ways in which to generate value for all organizational stakeholders
Corporate social responsibility (CSR)
is the commitment by organizations to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large
Who determines the actions of successful companies:
all stakeholders (society/employees/suppliers)
TSR:
Total shareholder return
EVA:
Economic profit or economic value added
Ownership models: Not-for-profit organizations
(e.g. Mozilla). Frequently charitable foundations that exist to pursue a social mission.
Partnerships (e.g. law firms).
Organizations owned and controlled by senior employees.
Employee-owned firms (e.g. John Lewis/ UK Retailer).
Ownership is spread among all the employees. They may not be able to raise capital easily and may be more conservative in terms of strategy.
Publicly-quoted companies
Shares are sold to the general public or financial institutions
State-owned enterprises
Politicians delegate day-to-day control to professional managers but may intervene on strategic issues.
Entrepreneurial businesses
controlled by their founders | With growth more professional managers and external investors are required.
Family businesses
Typically small to medium-sized enterprises (SMEs) | The family may retain the majority of shares
