Business strategy Flashcards
What is a business strategy?
A business strategy can be defined like a plan of action that is established for a specific business
objective.
What does outperform mean?
Outperform = surperformer; when strategy is successful
What are Henry Mintzberg’s 5 Ps of business strategy?
- Plan
- Ploy (stratagem/subterfuge)
- Pattern of behaviour
- Position with respect for j
- Perspective
What does the word ploy mean?
Contrary to a plan, a ploy is generally short term in its application. It’s also a stratagem.
What does operational management imply?
It consists to dealing with personnel issues, staff issues … It also consists to checking budget and in
looking for ways to improve efficiency. As a conclusion = managing the routine day-to-day activities of
the company
What does strategic management imply?
Deals with complex issues which affect the entire company. For example, analysing the behaviour of
competitors.
It also consists to evaluating the share price (prix de l’action, ce que vaut l’entreprise en bourse) of
the company.
It also consists to considering possibilities to expand the business…
The key different between operational and strategy management is that strategic management is
dealing with the strategic long-term activities of the business.
What are the three major components of strategic management?
Strategic analysis, strategic choice and strategic implementation
Regarding strategic management, what is the difference between a domestic business and an
international business?
- Domestic business serve a national market and as consequence they concentrate on local
issues - Multinational have to adopt a distinct strategic approach for each country they operate in.
Regarding strategic management, what is the difference between a non-profit organisation
and a for-profit organisation?
Non-profit organisation such as charities are essentially based upon a mission that is supported by
principles of value
For-profit organisations: there objective is to make money
What new business opportunities can be offered to companies that expand overseas?
Access to new markets, mew customers, new resoures, new skills… But the global market place can
also present competitive dangers because new markets entrants from abroad can enter the market
place with lower prices and innovative products. So, becoming global has strategic implication.
Give some reasons a company may have to go global.
- Market size: international market offers new opportunities for growth and expansion.
- Increased profitability
- diversification
What does diversification mean?
Spreading risks = diversification
What does customisation mean?
Customisation : increase costs + increase degree of duplication
What are the disadvantages of customisation?
