8- IB Strategy Flashcards
Strategic and organisational capabilities
Sc- what you have, resources, what you do well, competencies.
Oc- firms capacity to deploy resources for a desired end result.
VRIN
Value
Rarity
Imitability
Non-substitutability
Strategy formulation
Global businesses define overall goals. Often initially done in corporate mission statements
Ms- concept of company’s general purpose- why it exists, what it wants to accomplish
Shareholder model/stakeholder model.
Operational plans
Short term- less than one hear. For implementing strategic goals.
Tactical plans
1-3 year plans for implementing strategic goals.
Longer term strategy
Deciding on to be prospector, defender, analyser, reactor.
Coordination
Necessary to attain goals. Impediments- difficult, complex env, technology makes it easier.
Knowledge management systems (tacit knowledge- informal and difficult to communicate, explicit- codifiable and easy to specify/write down) difficult to convert tacit to explicit.
Control systems
Bureaucratic: rules and regulations- consistency, risk management,
interpersonal controls: engaging with employees, besting small organisations.
Output controls
Profits, growth, productivity, market share, antitrust law, quality and six sigma initiatives, CSR.
Organisational culture
Personality of given org. Shared norms and values. Effective control mechanism for org. Organisation changes- implementation of diff business/ cultural path, often considerable resistance.
Stateless corporation
Firms that transcend international boundaries and attempts to transcend nationality altogether
Represent fourth stage of globalisation: locate call corporate functions and top executives in different countries to achieve competitive advantage via access to talent, capital, low costs, or proximity to most important customers
Functional structure
Groups people together because they hold similar positions, perform similar tasks, same kind of skills.
Advantages - Promotes economies of scale, encourages collaboration, efficiency and quality.
Disadvantages – inability to respond to environmental change, restricted view of organisational goals among employees, local opposed to global optimisation
Divisional structure
Functions group together to save needs of products/markets/geographical regions. Organised according to the outputs of global business. Each division managed as separate business.
Advantages – focus on specific activities, and develop common identity/approach to problem-solving, increase cohesiveness and performance, quick response to change.
Disadvantage- require high operating costs, communication problems, divisions, may compete for organisation resources, pursue divisional goals > company.
Hybrid and matrix
Hybrid- Adopt a combination of organisation structures that fit the needs
Matrix – people groups simultaneously by function and division
*employees report to function and div managers
Adv- Allows to meet multiple environment demands, allows employees to apply F and D skills.
Disadv- limited op for promotion, determining responsibility and authority relationships between managers.
