10.4a - The Value of Strategic Planning

Question 1

Why might a strategy fail?

Answer 1

• Wrong strategy chosen for current circumstances
• Don’t have required or adequate resources
• Actions of competitors
• External factors

Question 2

What are the two key approaches to controlling strategy?

Answer 2

• Planned strategy

- Emergent strategy

Question 3

Planned strategy definition

Answer 3

A business strategy that has a clear end goal

Question 4

Advantages of a planned strategy:

Answer 4

• Structured
• Encourages long-term approach
• Used to assess progress by comparing current position to set targets
• Fixed and planned so easily communicated around business

Question 5

Disadvantages of a planned strategy:

Answer 5

• Everything has to go as expected
• Lots of factors can force a business to deviate from plan
• Variables cannot be controlled but need responding to
• Costs time and money to plan
• Plan eventually goes out of date

Question 6

Emergent strategy definition

Answer 6

A plan that is a pattern of action that develops over time

Question 7

Advantages of an emergent strategy:

Answer 7

• Continually learns what works in practice
• Firms are adapting to current situations
• Saves time and money spent on planning

Question 8

Disadvantages of an emergent strategy:

Answer 8

• No focus and control
• No clear end goal
• May not work for large companies because different parts need to coordinate

Question 9

What is an alternative approach to planned or emergent strategies?

Answer 9

A realised strategy (a business will plan what it intends to pursue and then will adapt to the situations that emerge)

Question 10

Unrealised strategies definition

Answer 10

Things a business planned to do but had to give up on because of changes in circumstances

Question 11

Advantages of strategic planning:

Answer 11

• Decisions are thought through (minimise risk)
• Provides direction
• Provides a structure and culture