Chapter 1 - Concept of and Rational Strategy Flashcards
Druker’s 5 Q’s on strategy?
What is our mission? Who is our customer? What is our plan? What are our results? What does the customer value?
Mintzberg’s 5 P’s of Strategy
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
3 levels of strategy
Corporate - what business, how integrated
Business - SBU on how to achieve mission
Functional - how functions support strategies
Strategy formulation framework
Set MISSION Establish OBJECTIVES SWOT (w,w/o consultants) Strategy OPTIONS Evaluate and CHOOSE Implement Review implementation & control
Mission question (3)
Why do we exist
What do we provide
For whom do we exist
CIMA Strategy definition
A course of action, incl resources to achieve specific objective and a strategic plan as a statement of long term goals
Vision definition
How the future will look like if we achieve the mission.
Goals vs Objectives
Goals
Not measurable, more specific than missions
Objectives
Measurable outcomes
Objectives should be:
SMART
Specific Measurable Achievable Relevant Timely
Objectives are used for:
PRIME
Planning Responsibility Integration Motivation Evaluation
Goal Structure
CSF critical success factors
supported by
KPI Key Performance Indicator
SWOT
Strength or Weakness (internal)
Opportunities and Threats (external)
Strategic direction (Ansoff matrix)
Product age vs Market age
Market Penetration
Market development
Product development
Diversification
Strategic methods
Internal development
Takeovers /acquisitions
Alliances
Stakeholder considerations for strategy
Stakeholder power
Strikes, public opinion, share sell off
Organisational legitimacy
Corp’s are here to be good citizens
Classes of stakeholders
Internal Connected External Primary (with contract) Secondary (wo contract)
Mendelow stakeholder matrix
Interest vs Power
Minimal effort: low low
Keep informed: high low
Keep satisfied: low high
Key players: high high
Scholes: how to influence Mendelow’s stakeholder categories
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
Managing stakeholder conflict (4)
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
