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Strategic Management > Chapter 1: Introducing Strategy > Flashcards

Chapter 1: Introducing Strategy Flashcards

1
Q

What is strategy?

A

The long term direction of an organisation

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2
Q

Name 3 leading strategy theorists

A

Alfred Chandler
Michael Porter
Henry Mintzberg

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3
Q

What does Alfred Chandler emphasise?

A

Logical flow from determination of goals & objectives to the allocation of resources

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4
Q

Logical flow from determination of goals & objectives to the allocation of resources

A

Alfred Chandler

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5
Q

What does Michael Porter focus on?

A

Deliberate choices, difference & competition

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6
Q

Deliberate choices, difference & competition

A

Michael Porter

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7
Q

What does Henry Mintzberg believe?

A

Strategies do not always follow a deliberately chosen & logical plan

They can emerge in more ad hoc ways

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8
Q

“A pattern in a stream of decisions”

A

Henry Mintzberg

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9
Q

What are the 3 elements of the definition of strategy?

A

1) Long term
2) Direction
3) Organisation

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10
Q

Long term

A

Strategies are typically measured over years

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11
Q

Strategies are typically measured over…

A

…years

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12
Q

The three horizons framework suggests…

A

…organisations should think of themselves as compromising 3 different types of business or activity , defined by their horizons in terms of years

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13
Q

Horizon 1 businesses are…

A

…the current core activities

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14
Q

Horizon 1 businesses need…

A

…defending & extending

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15
Q

The expectation of horizon 1 businesses in the long term is…

A

…they will likely be flat or declining in terms of profits

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16
Q

Horizon 2 businesses are…

A

…emerging activities that should provide new sources of profits

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17
Q

Horizon 3 businesses are…

A

…possibilities. Typically risky research & development projects, startup ventures, test-market pilots (in the future)

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18
Q

According to the three horizons framework, strategy involves…

A

…pushing out Horizon 1 as far as possible whilst looking to Horizons 2 & 3

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19
Q

Over the years, strategies…

A

…follow some kind of long term direction or trajectory

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20
Q

Managers try & set the direction of their strategy according to…

A

…long term objectives

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21
Q

Organisations have many…

A

…internal & external stakeholders

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22
Q

Strategy is crucially concerned with an organisation’s…

A

…external boundaries

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23
Q

Corporate-level strategy is concerned with…

A

…the overall scope of an organisation and how value is added to the constituent businesses of the organisational whole

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24
Q

Corporate-level strategy issues include…

A

…geographical scope, diversity of products or services, acquisitions of new businesses, and resource allocation between different elements of the organisation

25
Q

Business-level strategy

A

How the individual businesses should compete in their particular markets

26
Q

Business level strategy is often also referred to as

A

Competitive strategy

27
Q

Business-level strategy typically concerns issues such as

A

innovation, appropriate scale and response to competitors’ moves

28
Q

In the public sector, the equivalent of business-level strategy is

A

Decisions about how units (such as individual hospitals or schools) should provide best-value services

29
Q

Where the businesses are units within a larger organisation

A

Business-level strategies should clearly fit with corporate-level strategy

30
Q

Define operational strategies

A

how components of an organisation deliver effectively the corporate and business-level strategies in terms of resources, processes and people.

31
Q

In most businesses, successful business strategies depend to a large extent on

A

Decisions/activities at the operational level

32
Q

Strategy statements should have:

A

3 main themes

33
Q

The 3 main themes of strategy statements are:

A

1) Fundamental goals (mission/vision/objectives)
2) The scope/domain of organisation’s activities
3) Particular advantages/capabilities organisation has

34
Q

Mission

A

Relates to goals & refers to overriding purpose of the organisations

35
Q

The mission statement

A

Helps keep managers focused on what is central to their strategy

36
Q

Vision

A

Refers to desired future state of organisation

Aspiration which can help mobilise energy & passion of organisational members

37
Q

Objectives

A

More precise & quantifiable statements of organisation’s goals over period of time

Introduce discipline to strategy

38
Q

Scope

A

Refers to 3 dimensions:

1) Customers/clients
2) Geographical location
3) Extent of internal activities

39
Q

Advantage

A

How organisation will achieve objectives it has set for itself in its chosen domain

40
Q

Collis andRukstad suggest that

A

Strategy statements covering goals, scope and advantage should be

41
Q

Brevity

A

Keeps strategy statements focussed on essentials & makes them easy to remember

42
Q

The Exploring Strategy Model includes

A

1) Understanding strategic position of an organisation
2) Assessing strategic choices for the future
3) Managing strategy in action

43
Q

Strategic position

A

Impact on strategy of external environment, organisation’s strategic capability, organisation’s goals & org’s culture

44
Q

Environment

A

Opportunities & threats available to the organisation in this complex & changing environment

How dynamic/attractive are they?

45
Q

Strategic capability

A

Organisation’s strategic capabilities made up of its resources and competencies

Are its capabilities adequate to the challenges of its environment & demands of its goals?

46
Q

Strategic purpose

A

What does organisation seek to achieve?
Raises questions of CSR and ethics
Is the purpose appropriate? Are managers sticking to it?

47
Q

Culture

A

Refers to culture of organisation/industry/country
Typically product of history
Consequence of history & culture can be strategic drift, a failure to create necessary change

How does culture fit with required strategy?

48
Q

Strategic choices

A

Options for strategy in terms of direction & methods

49
Q

International strategy

A

Internationalism = form of diversification but into new geographical markets

Where internationally should the organisation compete?

50
Q

Innovation & entrepreneurship

A

Existing organisations have to innovate constantly to survive

Is it innovating appropriately?

51
Q

Acquisitions and alliances

A

Choices about methods for pursuing strategies

Use own resources or form alliances with complementary partners/acquire other businesses?

Ally or go it alone.

52
Q

Strategy in action

A

How strategies are formed and implemented

53
Q

Strategy performance and evaluation

A

Decide whether existing and forecast performance is satisfactory then choose between options to improve it

  • Are options suitable in terms of matching opportunities and threats?
  • Are they acceptable in eyes of stakeholders?
  • Are they feasible given the capabilities available?
54
Q

Strategy development processes

A

Strategies developed through formal planning processes or accumulated patterns of ad hoc decisions, bottom up initiatives and rapid responses to unexpected

What kind of strategy process should an org have?

55
Q

Organising

A

Once strategy is developed, organisation needs to organise for successful implementation

Requires own specific configuration of structures & systems

What kind of structures and systems are required?

56
Q

Leadership and strategic change

A

Managing change involves leadership, both at the top and bottom of organisation

No one way of leading change

Different styles and levers for change

How should the org manage necessary changes entailed by the strategy?

57
Q

Strategy practice

A

Who should do what in the strategy process?

Which people to include?
What activities they should do?
Which methodologies?

58
Q

What are the 3 pillars of strategic management?

A

Context
Process
Content

Strategic Management (13 decks)

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