Chapter 1 - Concept of and Rational Strategy

Question 1

Druker’s 5 Q’s on strategy?

Answer 1

What is our mission?
Who is our customer?
What is our plan?
What are our results?
What does the customer value?

Question 2

Mintzberg’s 5 P’s of Strategy

Answer 2

Plan - direction, guide, path to the future
Pattern - consistent behaviour
Ploy - (German Massnahmen) strategic moves
Position - identify place in the market
Perspective - own view of the world and the market

Question 3

3 levels of strategy

Answer 3

Corporate - what business, how integrated
Business - SBU on how to achieve mission
Functional - how functions support strategies

Question 4

Strategy formulation framework

Answer 4

Set MISSION
Establish OBJECTIVES 
SWOT (w,w/o consultants)
Strategy OPTIONS
Evaluate and CHOOSE
Implement
Review implementation & control

Question 5

Mission question (3)

Answer 5

Why do we exist
What do we provide
For whom do we exist

Question 6

CIMA Strategy definition

Answer 6

A course of action, incl resources to achieve specific objective and a strategic plan as a statement of long term goals

Question 7

Vision definition

Answer 7

How the future will look like if we achieve the mission.

Question 8

Goals vs Objectives

Answer 8

Goals
Not measurable, more specific than missions

Objectives
Measurable outcomes

Question 9

Objectives should be:

Answer 9

SMART

Specific
Measurable
Achievable
Relevant
Timely

Question 10

Objectives are used for:

Answer 10

PRIME

Planning
Responsibility
Integration
Motivation
Evaluation

Question 11

Goal Structure

Answer 11

CSF critical success factors

supported by
KPI Key Performance Indicator

Question 12

SWOT

Answer 12

Strength or Weakness (internal)

Opportunities and Threats (external)

Question 13

Strategic direction (Ansoff matrix)

Answer 13

Product age vs Market age

Market Penetration
Market development
Product development
Diversification

Question 14

Strategic methods

Answer 14

Internal development
Takeovers /acquisitions
Alliances

Question 15

Stakeholder considerations for strategy

Answer 15

Stakeholder power
Strikes, public opinion, share sell off

Organisational legitimacy
Corp’s are here to be good citizens

Question 16

Classes of stakeholders

Answer 16

Internal
Connected
External
Primary (with contract)
Secondary (wo contract)

Question 17

Mendelow stakeholder matrix

Answer 17

Interest vs Power

Minimal effort: low low
Keep informed: high low
Keep satisfied: low high
Key players: high high

Question 18

Scholes: how to influence Mendelow’s stakeholder categories

Answer 18

Interest vs power

Low low: direction, influence

High low: educate communicate join with high high

Low high: intervention: keep them on your side

High high: participation : communicate plans and discuss implementation

Question 19

Managing stakeholder conflict (4)

Answer 19

Satisficing: negotiate
Sequential attention: give in every now and then
Side payments: offer something else
Exercise of power: use forceful figure

Other:
Priorisation of strategy
Weighting and scoring of strategy
Wider balanced scorecard