Chapter 1: Introducing strategy Flashcards
What are the three different levels of strategy?
Corporate-level strategy: geographical scope, diversity of products or services, acquisitions, how resources are allocated between different elements of the organisation. Ex Tesla moving from car manufacture to batter production for home and business is a corporate level strategy
Business-level strategy: aka competitive strategy. innovation, scale and response to rivals moves. Ex Tesla: rolling out a lower cost electric car to build volume and capture market share in advance of potential competitor entry.
Functional-level strategy: Ex Tesla organizing AI Day
What is the definition of strategy according to Henry Mintzberg?
“A pattern in a stream of decisions.”
What is the definition of strategy according to Michael Porter?
“Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value”.
What is the short definition of strategy according to Exploring strategy?
“Strategy is the long-term direction of an organization”.
What is the long definition of strategy according to Exploring strategy?
“Strategy is the long-term direction of an organization, formed by choices and actions about its resources and scope to create advantageous positions relative to competitors and peers in changing environmental and stakeholder contexts”.
What are the three horizons for strategy?
Horizon 1: extend and defend core business
Horizon 2: build emerging businesses
Horizon 3: create viable options
How can you define purpose?
Purpose is the reason the organization exists.
What is a vision statement?
The future the organisation seeks to create.
What is a mission statement?
It provides clarity about what the organisation is fundamentally there to do.
What is organizational objectives?
Statements of specific outcomes that are to be achieved. Often stated in financial terms, ex profit.
