Ch.2 Working with Strategy Flashcards
What are the three key issues in strategy work?
Strategic thinking, in particular the notion of thinking slow. Including Strategy frameworks in strategic thinking, using SWOT analysis. Also various Thinking techniques, such as allocentricism, issue trees and system mapping.
Strategy analysis procedures, including the analysis of published case studies and the investigation of real organisations.
Developing strategy in the form of strategic plans, criteria for a ‘good strategy’, and Communicating strategy through presentations.
What is the definition of ‘Thinking slow’?
Thinking slow is deliberative, analytical and thorough: Kahneman calls this System 2 thinking.
What is the difference between ‘convergent’ and ‘divergent’ thinking?
Convergent thinking is like the left-brain: analytical and
focused. Divergent thinking is closer to the right-brain: creative and receptive to a wide range of ideas and information.
What are the benefits of Checklists?
Checklists help ensure that you are comprehensive in your thinking, covering the qualitative issues amenable to the right-brain as well as the quantitative issues favoured by the left.
Checklists are a key thinking tool in many professions. Surgeons before the first cut, airline pilots before take-off and structural engineers before completing their designs all use checklists.
What is a SWOT-analysis? Describe its elements.
SWOT analysis involves the systematic analysis of an organisation’s strengths, weaknesses, opportunities and threats.
Strengths are those internal factors that make an organisation superior and more competitive than its peers.
Weaknesses are limitations, faults, or defects within the organisation that will keep it from achieving its objectives.
Opportunities include any favourable current or prospective situation in the organisation’s environment, such as a trend, change, or overlooked need.
Threats include any unfavourable situation, trend or impending change in an organisation’s environment that is currently or potentially damaging to its ability to achieve its objectives.
What are the three most frequent failings in SWOT analyses?
Confusing the internal and the external. It is important to recognise that opportunities and threats are external to the organisation being analysed, whereas strengths and weaknesses are internal.
Long lists. Compiling long lists of items in each box is not the same as doing a SWOT analysis. What matters is to be clear about what is most significant and what is less so, based on a rigorous and systematic analysis of all items.
Stopping at SWOT. A final danger is substituting the SWOT for a comprehensive and deeper strategy analysis.
What is the TOWS matrix? Why is it useful?
The TOWS matrix, sometimes termed a collision matrix, is a useful way of transforming SWOT analysis into strategic actions.
SO - Generate options here that use strengths to take advantage of opportunities.
WO - Generate options that take advantage of opportunities by overcoming weaknesses.
ST - Generate options here that use strengths to avoid threats.
WT - Generate options here that minimisses weaknesses and avoid threats.
What are the three ‘Strategic thinking techniques’?
Allocentricism, which is about looking broadly; Issue trees, which are about thinking deeply; and System mapping, which is about seeing links.
Strategic thinking techniques: What is Allocentricism?
Allocentricism involves thinking not only about your own organisation but about other actors, for example customers, suppliers, rivals, partners and governments.
Strategic thinking techniques: What is System mapping?
System maps show the consequential links between the elements of a strategic problem.
Strategic thinking techniques: What is Issue trees?
Issue trees involve the systematic breaking-down of big issues into subsidiary issues for further analysis.
