Chapter 1

Question 1

What is the difference between a positioning led strategy and a resource based strategy

What is an example of each

Answer 1

Positioning led orientate strategy around what it thinks the customer wants
Eg car designer

Resource based makes best use of its internal resources to achieve competitive advantage
Eg Apple

Question 2

Define an SBU

Answer 2

Relatively autonomous division of a large co. that operates as an independent enterprise with responsibility for a particular range of products or activities

Question 3

What are the 3 forms of strategy throughout an organization

Answer 3

Corporate strategy - high level determined by the board

Business strategy - each SBU determines how it will meet objectives

Functional strategy - how day-to-day operations will fulfill the business

Question 4

What is the model in relation to mission statement

What are the categories

Answer 4

Ashridge college model

RSVP

Reason
Strategy
Values
Policies

Question 5

What are the two ways to maximize shareholder wealth

Answer 5

Increase dividends

Increase share price

Question 6

What the model relating to strategy formulation

What are the 3 levels

How often is this reviewed

Answer 6

Rational planning model

1. Strategic analysis
2. Strategic choice
3. Strategic implementation

Yearly usually

Question 7

What model relates to emergent strategies

How does this model work

Answer 7

Mintzberg model

Intended strategies —-> deliberate strategies and unrealized strategies ——-> add in emergent strategies = realised strategies

Question 8

What are the 5 objectives of goals

Answer 8

SMART

Specific
Measurable
Attainable
Relevant
Timebound