3.10.4 - strategic decision making Flashcards
what is strategic decision making?
- using critical decision making to make long term choices
what is meant by a planned strategies?
when there is a detailed plan which is meant to cover every eventuality in the future e.g.) allow for external factors
what is meant by an emergent strategy?
a strategy that evolves with circumstances
3 advantages of a planned strategy…
- takes all factors into account
- can be more financially prepared (contingency funds)
- provides stability
3 advantages of an emergent strategy…
- less time consuming
- learn from real world rather than forecasting
- competitive advantage by being more flexible
what is meant by a core competency?
something that the business has which makes it better than the opposition
what is strategic drift?
when plans/strategies don’t follow with external environment changes
what are the 5 stages of strategic planning?
- outline mission and objectives
- analyse SWOT
- decide objectives based off SWOT
- put a plan in place to achieve objectives
- control + evaluate plan
what is contingency planning?
planning for emergencies, foreseen and unforeseen
what is crisis management?
more urgent and reactionary management that occurs when there is a sudden event that needs to be reacted to
how does crisis management effect finance?
will cost a lot of money to fix the emergency
how does crisis management effect marketing?
it will damage brand image
How will crisis management effect operations?
it will limit product or services the businesses provides
how will crisis management effect the people of a business?
managers/owners may need to hire/layoff employees
what are the 6 stages in contingency planning?
- recognise the risk
- identify critical risks and less important ones
- use sensitivity analysis (what if)
- can the crisis be prevented?
- formulate plans for dealing with each crisis
- simulate each crisis by role play
