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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
Business-level strategy
How the individual businesses should compete in their particular markets
26
Business level strategy is often also referred to as
Competitive strategy
27
Business-level strategy typically concerns issues such as
innovation, appropriate scale and response to competitors’ moves
28
In the public sector, the equivalent of business-level strategy is
Decisions about how units (such as individual hospitals or schools) should provide best-value services
29
Where the businesses are units within a larger organisation
Business-level strategies should clearly fit with corporate-level strategy
30
Define operational strategies
how components of an organisation deliver effectively the corporate and business-level strategies in terms of resources, processes and people.
31
In most businesses, successful business strategies depend to a large extent on
Decisions/activities at the operational level
32
Strategy statements should have:
3 main themes
33
The 3 main themes of strategy statements are:
1) Fundamental goals (mission/vision/objectives) 2) The scope/domain of organisation's activities 3) Particular advantages/capabilities organisation has
34
Mission
Relates to goals & refers to overriding purpose of the organisations
35
The mission statement
Helps keep managers focused on what is central to their strategy
36
Vision
Refers to desired future state of organisation Aspiration which can help mobilise energy & passion of organisational members
37
Objectives
More precise & quantifiable statements of organisation's goals over period of time Introduce discipline to strategy
38
Scope
Refers to 3 dimensions: 1) Customers/clients 2) Geographical location 3) Extent of internal activities
39
Advantage
How organisation will achieve objectives it has set for itself in its chosen domain
40
Collis andRukstad suggest that
Strategy statements covering goals, scope and advantage should be
41
Brevity
Keeps strategy statements focussed on essentials & makes them easy to remember
42
The Exploring Strategy Model includes
1) Understanding strategic position of an organisation 2) Assessing strategic choices for the future 3) Managing strategy in action
43
Strategic position
Impact on strategy of external environment, organisation's strategic capability, organisation's goals & org's culture
44
Environment
Opportunities & threats available to the organisation in this complex & changing environment How dynamic/attractive are they?
45
Strategic capability
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
Strategic purpose
What does organisation seek to achieve? Raises questions of CSR and ethics Is the purpose appropriate? Are managers sticking to it?
47
Culture
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
Strategic choices
Options for strategy in terms of direction & methods
49
International strategy
Internationalism = form of diversification but into new geographical markets Where internationally should the organisation compete?
50
Innovation & entrepreneurship
Existing organisations have to innovate constantly to survive Is it innovating appropriately?
51
Acquisitions and alliances
Choices about methods for pursuing strategies Use own resources or form alliances with complementary partners/acquire other businesses? Ally or go it alone.
52
Strategy in action
How strategies are formed and implemented
53
Strategy performance and evaluation
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
Strategy development processes
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
Organising
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
Leadership and strategic change
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
Strategy practice
Who should do what in the strategy process? Which people to include? What activities they should do? Which methodologies?
58
What are the 3 pillars of strategic management?
Context Process Content

Strategic Management (13 decks)

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