Chapter 1 - commercial global strategy

Question 1

What are the four areas of Competitive advantage (Porters generic strategies) (pg 10)

Answer 1

Horizontal - low cost to differentiation
Vertical - narrow to broad target

Cost leadership
Differentiation
Cost focus
Differentiation focus

Question 2

What are the characteristics of strategic decisions? (Pg 8)

Answer 2

11 Characteristics

C RIP CORD CUT

• Change
• Risk
• Integration
• Partners
• Complication
• Operational
• Relationship
• Disintegration
• Complicity
• Uncertainty
• Tactical

Question 3

What are the levels of strategic decisions (pg 26)?

Answer 3

Strategic
Tactical
Operational

Question 4

What are the three levels of decision making differentiated by? (Pg 27)

Answer 4

- FOCUS of the decision
On the
- LEVEL of the decision-making
- COMPLEXITY
- SCOPE of the decision
The
- TIME horizon 
With
- Degree of CERTAINTY or uncertainty

Question 5

What are Mintzbergs 5Ps (strategic position) (pg 33 and 209)?

Answer 5

• PLO Ploy
• PLA Plan
• POS Position
• PER Perspective
• PAT Pattern

Question 6

What is the statement defining goals of the organisation?

Answer 6

The mission statement

Question 7

What states what the organisation plans to do?

Answer 7

An objective

Should support the strategy/ show how the strategy will be achieved

Question 8

What is the plan for a successful operation of the business?

Answer 8

The business model

Question 9

Where do the macro factors for the organisation come from?

Answer 9

The external environment

Question 10

What is the name for the long term plan to achieve an objective?

Answer 10

The strategy

Question 11

The condition the gives the organisation a favourable position?

Answer 11

Competitive advantage

Question 12

What 5 things should strategic implementation (strategy in action) answer (pg 50)?

Answer 12

• Are strategies SUITABLE, ACCEPTABLE or FEASIBLE?
• What KIND of strategy making PROCESS is needed?
• What are the REQUIRED ORGANISATIONAL PROCESSES and SYSTEMS?
• HOW should the organisation MANAGE necessary CHANGES?
• WHO should DO what in the strategy process?

Question 13

What are the 9 critical tasks of strategic management (pg 3)?

Answer 13

Pearce and Robinson

1 - Formulate an organisations MISSON, VISION and GOALS
2 - Conduct an analysis of the organisations INTERNAL resources and capabilities
3- Assessing the organisations EXTERNAL environment
4- Assess the organisations options by MATCHING its resources with the external environment
5- Identifying the most desirable causes of ACTION by evaluating each option with regard to the organisations mission
6- Select a set of L/T OBJECTIVES and strategies to achieve the most desirable option
7- Developing ANNUAL objectives and a/t goals which will help execute the l/t goals and objectives
8- IMPLEMENT the strategic choices by allocate resources appropriately
9- Evaluate the SUCCESS of the strategic management process