Block 1: Introducing Strategy

Question 1

Definition of Strategy (Chandler)

Answer 1

The determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for those goals. (Chandler, 1962, p. 13)

Question 2

Definition of Strategy (Sloan)

Answer 2

The strategic aim of a business is to earn a return on capital, and if in any particular case the return in the long run is not satisfactory, the deficiency should be corrected or the activity abandoned. (Sloan, 1964, p. 49)

Question 3

Definition of Strategy (Porter)

Answer 3

Essentially, developing a competitive strategy is developing a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals. (Porter, 1980, p. xvi)

Question 4

Mintzberg’s five Ps

Answer 4

• Plan
• Ploy
• Pattern
• Position
• Perspective

Question 5

Whittington’s three P’s

Answer 5

• Practitioners - People who do strategy
• Practices - Approaches, tools, methods, frameworks
• Praxis - The actual activity

Question 6

Whittington four categories of Strategy

Answer 6

Classical

Evolutionary

Processual

Systemic

Question 7

Industry types

Answer 7

Perfect competition

Oligopoly

Duopoly

Monopoly

Question 8

Porters 5 Forces of Competition

Answer 8

Industry Rivalry

Supplier Power

Threat of Entry

Substitutive Competition

Buyer Power

Question 9

VRIO: A framework for analysis

Answer 9

Value

Rarity

Imitability

Organisation

Question 10

Define Corporate Strategy

Answer 10

WHERE a company seeks to compete. Bourgeois (1986) called “domain selection”

define the scope of the firm interns of industries and markets in which it competes (Grant 2013)

Question 11

Define Competitive Strategy

Answer 11

HOW a company seeks to compete Bourgeois (1986) called “domain navigation”

Question 12

Corporate Parent & SBU

Answer 12

Corporate Parent - Head office

SBU - Strategic Business unit

Question 13

Domain Selection (Corporate Strategy)

Answer 13

Region

Country

Industry

Market

Question 14

Domain Navigation (Competitive strategy)

Answer 14

Overall Cost Leadership

Differentiation

Cost Focus

Differentiation focus

Integrated cost and differentiation focus

Question 15

Roles of Corporate Parent

Answer 15

Provide corporate functions. e.g. HR, Finance

Corporate development. e.g. R&D, Contracts

Provide finance for growth

Develop formal links between SBU’s to transfer Tech or Skills

Question 16

Porters 5 forces criticisms

Answer 16

Resource-based Criticisms

Dynamic criticisms

Practice-based criticisms

Sector-based criticisms

Question 17

Simons problem recognition

(derives from his work on bounded rationality)

Answer 17

Problem recognition

Develop alternaives

Choice