Chapter 1 Flashcards
What is the definition of strategy
A long term direction on how the organisation want to achieve their goals and it has to be logical and consistent
What is the different levels of strategy
1, Cooperate level, 2, Business level & 3, functional level
What does the cooperate level intend
In what ares should we compete?
The strategic decisions are concerned with overall purpose and scope, adding value to shareholders, resource allocations and structure
What does the business level intend
How should we compete?
Competitive strategy, developing market opportunities and new products
What does the functional level intend
It is about implementing our strategy.
How should we do our marketing actions?
What does a good strategy give answers to?
Where do we compete?
What unique value do we bring?
What resources do we have?
How do we sustain our unique value?
It also shows us what we should and shouldn’t do in the organisation.
It also concludes past current and future situations
When does a strategy fail?
When it has no clear purpose
When it is a opinion rather then based on real and objective information
Define mission statement
Provides clarity of what the organisation is there to do
Define vision statement
Concerned with the future the organisation is looking to create
“what do we want to achieve”
Define statement of values
It shows how the organisation should operate and it is the same all the time
Define objectives
Outcomes that can be achieved like financial terms, level of sales or profit
Strategy development processes
The rational is….
Strategies from rational processes, it sees the development as linear and it is led by top management
Strategy development processes
The emergent (framväxande) view….
The strategy doesn’t develop as planned but tend to emerge in the organisation because of actions of adapt by workers in the company
Strategy statements have 3 main themes, which is….
Fundamental goals that the organization seeks
Scope or domain of the organisations activities
Particular advantages has to deliver all of these (advantages is how the goal is going to be achieved)
