2 - Strategic Management

Question 1

What is ‘rational strategy’? (briefly)

Answer 1

Change that evolves as a result of the working through of a strategic plan

Question 2

What is ‘emergent strategy’? (briefly)

Answer 2

Change that evolves without a rational plan, or as a result of the changes in the parameters that have helped in the construction of a rational plan

Question 3

Presumption of rational view of strategy (‘rational strategy’)

Answer 3

The people undertaking the strategic management will always act in a logical, structured and proactive manner

Question 4

Ansoff (1990) - what did they say?

Answer 4

Organisations are ‘purposive’, and their objectives are means by which success or failure can be identified

Question 5

Ansoff’s 4 categories of objectives

Answer 5

• Economic
• Non-economic
• Self-renewal
• Flexibility

Question 6

Explain economic category of objective (Ansoff)

Answer 6

The efficient use of available resources to convert inputs into outputs, giving the opportunity to measure this quantitatively – as a result of ‘x’ input we achieved ‘y’ output

Question 7

Explain non-economic category of objective (Ansoff)

Answer 7

The ability to satisfy the expectations of stakeholders; this can be both quantitative and qualitative.

Question 8

Explain self-renewal category of objective (Ansoff)

Answer 8

The building of an organisation through reinvestment.

Question 9

Explain flexibility category of objective (Ansoff)

Answer 9

Sufficient latitude in the prescribed plan to enable an organisation to survive and manage different forces.

Question 10

3 core attributes of rational plan

Answer 10

• Created at the top of an org
• Starts with the entirety of org, before being broken down into smaller parts
• Contains conscious choices made concerning length, levels of risk, etc.

Question 11

What are writers on strategy generally trying to explain when offering a different perspective?

Answer 11

Explain why human beings do not behave in a rational or logical matter

Question 12

4 perspectives of the rational approach (causes of limitations)

Answer 12

• Crafting and intuition (bias from intuitions)
• Competition (seeking competitive advantage)
• Learning organisation (new knowledge)
• Chaos theory (effect of VUCA forces)

Question 13

What is VUCA?

Answer 13

Volatility
Uncertainty
Complexity
Ambiguity

Question 14

4 limitations on rational model (Mintzberg), brief explanations

Answer 14

Data - difficulty to gather, control and structure
Routine - waiting for set time/date to address any issues is inefficient/ineffective
Inertia - obsession with performance against plan rather than readiness to cope with uncertainty
Politics - rational plan ignores political environment and org’s power struggles

Question 15

2 different directions of intended strategy (Mintzberg)

Answer 15

Non-realised strategy - that which has not succeeded
Realised strategy - that which has succeeded

Question 16

What will have significant influence on deliberate/intended strategy?

Answer 16

Emergent strategies

Question 17

3 causes of different strategic ideas or alteration of strategic requirement (these causes could be regarded as emergent strategies)

Answer 17

• People (new staff, changes in opinion of staff)
• Direct organisational events (poor sales, difficulty in obtaining supply, striking)
• Indirect wider economic and other external events (tax, interest rate or government change)

Question 18

3 concepts of emergent strategy

Answer 18

• Mintzberg
• Context, content and process (Pettigrew and Whipp)
• Integrative thinking (Martin)

Question 19

What does ‘context, content and process’ (Pettigrew and Whipp) approach to emergent strategy say?

Answer 19

All strategic change takes place within threefold context as result of inextricable linkage between strategic change and competition

Question 20

‘Content’ of ‘context, content and process’

Answer 20

Strategic vision, strategic plan and implementation plan

Question 21

‘Context’ of ‘context, content and process’

Answer 21

Considers the people, org culture, resources available, politics, etc.

Question 22

‘Process’ of ‘context, content and process’

Answer 22

Considers available and required leadership, communication routes, perceived route of delivery

Question 23

Upon who/what will strategic objectives and strategic planning be based? Sole Trader

Answer 23

The expectations of the individual

Question 24

Upon who/what will strategic objectives and strategic planning be based? Partnerships

Answer 24

Expectations of the partners

Question 25

Upon who/what will strategic objectives and strategic planning be based? Ltd companies

Answer 25

Expectations of the shareholders

Question 26

Why are strategic dynamics significantly more diverse for public co’s rather than private co’s?

Answer 26

Much wider and more diverse group of shareholders

Question 27

Three-dimensional context that all organisations operate within

Answer 27

• Org itself
• Sector
• Wider economy

Question 28

4 levels of ‘competition’ (most to least)

Answer 28

Perfect competition
Monopolistic competition
Oligopoly
Monopoly

Question 29

Chaos Theory - 4 questions raised by Mintzberg re. rational view (fallacies)

Answer 29

Intuitive judgement - how can strategy be reduced to rigid sequence of steps

Those who plan do not do, and therefore are not best placed to know how to achieve in optimal way

Differing strengths and weaknesses of individuals are only discovered when tackling actual problems

Very difficult to forecast anything other than immediate future due to rapidly changing environment

Question 30

In modern world, how far in future is it safe to plan?

Answer 30

No more than 24 months

Question 31

Explain Mintzberg’s diagram - rational and emergent

Answer 31

• Intended strategy on left
• Realised strategy on right
• Deliberate strategy is arrow from intended to realised
• Non-realised strategy is arrow falling away
• Emergent strategies comes from above and below to affect deliberate strategy