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Business, Technology and Finance > 2. Strategic plans and risk management > Flashcards

2. Strategic plans and risk management Flashcards

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1
Q

What four factors is strategy concerned with?

A
  1. Long term direction
  2. Environment in which the business operates
  3. Resources at the business’s disposal
  4. Return the business makes to the stakeholders
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2
Q

What are Mintzberg’s 5 Ps of strategy?

A
  1. Plan
  2. Ploy
  3. Pattern
  4. Position
  5. Perspective
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3
Q

Define strategic plan

A

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

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4
Q

What is the difference between a positioning based view and a resource based view?

A

Positioning based view: identifying opportunities in the environment and developing strategic capability to take advantage of them

Resource based view: based on the unique capabilities of the business, and opportunities should be sought to allow the business to exploit these capabilities to achieve competitive advantage

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5
Q

What are the four key stages of a rational planning model?

A
  1. Strategic analysis
  2. Strategy choice
  3. Strategy implementation
  4. Review and control
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6
Q

How does the emergent approach differ from the rational planning model?

A

It allows the strategy to evolve and emerge, so is less structured

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7
Q

Define competitive strategies, product-market strategies and institutional strategies

A

Competitive strategies: generic strategies for competitive advantage a business will pursue

Product market strategies: these determine where it competes and direction of growth

Institutional strategies: these determine the method of growth

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8
Q

Give an example of a task environment

A

Competitors, customers, suppliers of resources

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9
Q

What four Ss can be used to describe a static environment?

A
  1. Static
  2. Single
  3. Simple
  4. Safe
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10
Q

What four Ds can be used to describe a dynamic environment?

A
  1. Dynamic
  2. Diverse
  3. Difficult
  4. Dangerous
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11
Q

What does PESTEL stand for?

A 
Political factors
Economic factors 
Social factors
Technological factors 
Environmental factors 
Legal factors
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12
Q

What five aspects does Michael Porter identify in a competitive environment?

A
  1. Potential entrants
  2. Bargaining power of customers
  3. Threat of substitute products or services
  4. Bargaining power of suppliers
  5. Rivalry among existing firms
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13
Q

What four kinds of competitor does Kotler list?

A
  1. Brand competitors
  2. Industry competitors
  3. Generic competitors
  4. Form competitors
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14
Q

Define a posterior audit

A

Part of the planing process which examines the current state of the entity in respect of: a) resources of assets, b) products, brands and markets, c) operating systems, d) internal organisation, e) current results, f) returns to shareholders

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15
Q

Define a key factor

A

Anything which limits the activity of an entity

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16
Q

What is the difference between value drivers and cost drivers?

A

Value drivers: element of a product or service and activities that increase the amount of value consumers place on it

Cost drivers: any activity that affects the cost of a product or service

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17
Q

What are the five primary activities in the value chain?

A
  1. Inbound logistics (handling inputs)
  2. Operations (converting inputs)
  3. Outbound logistics (storing product)
  4. Marketing and sales (informing customers)
  5. Service (installing products, repairs etc.)
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18
Q

What four support activities are there in the value chain?

A
  1. Procurement
  2. Human resource management
  3. Technology development
  4. Firm infrastructure
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19
Q

Define supply chain management (SCM)

A

Optimising the activities of businesses working together to produce goods and services

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20
Q

What three aspects of a product do managers distinguish?

A
  1. Product class
  2. Product form
  3. Brand
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21
Q

A firm with high market share and high market growth should _____

A

Build

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22
Q

A firm with low market share and low market growth should _____ or _____

A

Divest or hold

23
Q

A firm with high market share and low market growth should _____ or ______

A

Hold or harvest

24
Q

A firm with low market share and high market growth should _____ or ______

A

Harvest or build

25
Q

What is a SWOT analysis?

A

A critical assessment of strengths, weaknesses, opportunities and threats in relation to the internal and environmental factors affecting an entity in order to establish its condition prior to the preparation of the long term plan

26
Q

Appraisal of the business’s strengths and weaknesses is from the ______ analysis

Appraisal of the business’s opportunities and threats facing the business is from the ______ analysis

A

Internal

External

27
Q

Define gap analysis

A

A comparison between an entity’s desired future performance level and the expected performance of projects both planned and underway

28
Q

The profit gap is the difference between the _____ profit and the profit _____

A

Target, forecast

29
Q

What three generic competitive strategies does Porter believe there are?

A
  1. Cost leadership (competing with lowest costs)
  2. Differentiation
  3. Focus (restricting oneself to only part of a market)
30
Q

What three criteria do Johnson and Scholes set for evaluating and choosing strategies?

A
  1. Suitability
  2. Acceptability
  3. Feasibility
31
Q

What is the difference between upside and downside risks?

A

Upside risk- if it is likely that things will go right

Downside risk- the risk that something will go wrong

32
Q

What is the difference between pure risk and speculative risk?

A

Pure risk- describes the possibility that something will go wrong

Speculative risk- describes the possibility that something could go better than expected

33
Q

Per COSO’s ‘Enterprise Risk Management Framework’ 2004, what is the difference between risk and opportunity?

A

Risk: adverse effects
Opportunity: positive effects

34
Q

Define the volatility of returns

A

The range of potential variation in returns

35
Q

What two categories can risk be broadly put into?

A
  1. Business risk

2. Non-business risk

36
Q

Define operational risk

A

The risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events, including legal risks

37
Q

The scale of any risk for a business depends on which four key risk concepts?

A
  1. Exposure
  2. Volatility
  3. Impact
  4. Probability
38
Q

Gross risk = ______ x ______

A

Gross risk = probability x impact

39
Q

Cyber risk can materialise in what three ways?

A
  1. Deliberate and unauthorised breaches of security
  2. Unintentional breaches of security
  3. Operational IT risks due to poor systems integrity or other factors
40
Q

What two key threats does the National Crime Agency identify?

A
  1. Hacking

2. Distributed denial of service (DDoS) attacks (prevention of use of services)

41
Q

How can a firm counter the threat of synergy attacks through better cyber security?

A
  1. Report cyber attacks
  2. Cyber risk mitigation
  3. Manager cyber security
  4. Promote awareness
  5. Share knowledge and expertise
  6. Develop cyber skills and awareness
42
Q

What are the four steps to a risk management process?

A
  1. Awareness and identification
  2. Analysis: assessment and measurement
  3. Response and control
  4. Monitoring and reporting
43
Q

What are the four responses for a risk management process?

A
  1. Avoidance
  2. Reduction
  3. Sharing
  4. Acceptance
44
Q

Give an example of a physical control

A

Locks
Speed limits
Protective clothing

45
Q

Give an example of a financial control

A

Credit checks

Credit limits

46
Q

Give an example of a system control

A

Procedural controls
Software controls in computer systems
Organisation controls on people

47
Q

Give an example of management control

A

Organisational structure

Annual budget

48
Q

What are the three parts to crisis management?

A
  1. Identify
  2. Plan response
  3. Confrontation and resolution of crisis
49
Q

What are the three main types of crisis?

A
  1. Financial crisis
  2. Public relations crisis
  3. Strategic crisis (changes in business environment)
50
Q

In the event of a public relations crisis, it is important to act ______

A

Immediately

51
Q

What three areas will a long-term disaster recovery plan provide for?

A
  1. Standby procedures
  2. Recovery procedures
  3. Personnel management policies (ensuring 1. and 2. are properly implemented)
52
Q

Define business resilience

A

A business’s ability to manage and survive against planned or unplanned shocks and disruptions to its operations

53
Q

Define cyber resilience

A

An organisation’s ability to ensure that its data and information are reliable, available and have integrity as well as being adequately protected from unauthorised access

54
Q

Define supply chain resilience

A

Minimising potential disruption caused by outsourcing or working with partners or by adopting a just-in-time approach to production and inventory management

Business, Technology and Finance (9 decks)

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