Chapter 1 - Approaches to Strategy Flashcards
1
Q
Strategy
A
Course of action, including specification of resources, to achieve specific goal
* Might not have plan, always have goal
2
Q
Strategic Plan
A
Long-term goals with strategies/policies to achieve goals
3
Q
Approaches to Strategy
A
- Accounting led e.g. grow revenue 15%
- Market led - analyse market/competitors
- Competance led - what good at (resource based)
4
Q
Not for Profit
A
- Economy (inputs) - minimise costs
- Effectiveness (outputs) - meeting objectives
- Efficiency (links) - doing things right way
5
Q
Levels of Strategy
A
- Corporate - whole business / permanent
- Business - divisions, depts, countries, particular product
- Operational - how orgs delievrs day to day
6
Q
SBU
A
Strategic Business Unit - distinct external market
7
Q
Alternatives to rational planning
A
- Logical Incrementalism (Quinn) - small steps
- Freewheeling opportunism - take opportunities as arise
- ‘Craft’ emergent strategy (Mintzberg) - patterns of behaviour
8
Q
Directors (duties)
A
- Due diligence
- Fiduciary - act in good faith
- Agency theory - best interests of principal (shareholders)
9
Q
Corporate Governance
(defn)
A
way companies are directed and controlled
10
Q
Principles of Corporate Governance
A
- Leadership - different Chairman/CEO
- Effectiveness - skills/experience
- Accountability
- Directors Renumeration - formal/transparent procedures
- Relations with shareholders - communication
11
Q
Environmental uncertainty
A
changing of economic relationships over time
12
Q
Bounded rationality
A
not possible to have perfect knowledge
13
Q
Traditional Approach
A
Identify major stakeholders and devlop strategies to satisfy them
