3.10.4 Problems with Strategies and Why They Fail Flashcards
What are 2 examples of successful strategies?
Apple - differentiation strategy - unique features, strong brand loyalty - apple ecosystem all seamless
Spotify - prioritises innovation, user experience
What are 2 examples of unsuccessful strategies?
Toys R Us - Failed to adapt to online - had a unique instore experience
Blockbuster - merger with Netflix declined - stayed in physical stores
What is Primark an example of?
A business which has faced online by keeping their prices low
What is strategic decision making?
The process of making long-term choices that align with a business’s mission and objectives
What are 3 difficulties of implementing strategy?
External Factors
Availability of resources - staff, money etc
Attitude of stakeholders - resistance?
What are planned strategies?
When there is a detailed plan which is meant to cover eventuality in the future e.g allow for external factors
What are emergent strategies?
Those that evolve with circumstance e.g they can change depending on factors
What is an disadvantage of a planned strategy?
That it can be hard to change
What is an advantage of a emergent strategy?
Can respond to changes - more flexible
What is strategic drift?
When a company’s strategy slowly becomes outdated and less effective overtime because it fails to keep up with changing market conditions/outside world.
What does strategic drift mean in terms of how a business is performing?
Can either be transformational or death for the business
What is an example of a business that went through a transformational change?
Apple
What is an example of a business that went through a death change?
Kodak or Blockbuster
List 2 reasons how to avoid strategic drift?
Make the strategy emergent
Research into the market
What is the process of strategic planning?
Define mission
SWOT
Define objectives
Put a plan
Evaluate plan
What is the value of strategic planning? 2 reasons
Provides direction for the business
Can avoid unforeseen changes/risks
What is a contingency plan?
A plan for something that can go wrong
What is an example of unforeseen change?
COVID
What is an example of foreseen change?
Running out of a resource
What is crisis management?
Tends to be for emergencies
What are the stages of contingency planning?
Recognise risk
Identify the most critical risk
Can it be prevented
Make plans
What is the value of contingency planning?
Helps minimise the impact of risks
Can reduce the impact on customers and revenue
