Chapter 1: Introduction

Question 1

Why would a company need a strategy?

Answer 1

A strategy provides a game plan for long-run survival given a specific situation, opportunities & resources

Question 2

What is strategic planning?

Answer 2

Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and the ever-changing external environment

Question 3

According to M. Porter, what is strategy?

Answer 3

• Seeking ideal competitive position in an industry
• Benchmarking
• Outsourcing & partnering to improve efficiency
• Focusing on Key Success factors, Critical resources and core competencies
• Rapidly responding to ever-evolving competitive market changes

Question 4

What are the 2 main strategies that M. Porter suggests?

Answer 4

• Do what everyone else is doing (but spend less money doing it)
• Do something no one else can do

Question 5

What are the steps taken to develop and implement a plan?

Answer 5

1) Define goals
2) Conduct a situation analysis
3) Develop a vision and mission
4) Identify strategic options
5) Choose a strategy
6) Develop an action plan
7) Implement and monitor
8) Refine the strategy