Chapter 1 - Introduction to SBL and Concepts of Strategy

Question 1

What is a strategy?

Answer 1

It is the pattern of activities that a business organization does to achieve the objectives by adapting the scope and resources to the changes in the environment to get that competitive advantage.

Question 2

Advantages of strategy? (4)

Answer 2

1. It gives the business direction.
2. Better utilization of resources.
3. It allows the business to look forward.
4. Monitor progress.

Question 3

Dis-advantages of strategy? (4)

Answer 3

1. It can be a straight jacket.
2. It can be expensive and time consuming.
3. It would not be helpful in a crisis.
4. It misses unplanned opportunities.
5. It can be bureaucratic. (Red tape)

Question 4

When is strategy particularly important?

Answer 4

1. When the business needs to turn around.
2. High capital expenditure.
3. Lots of stakeholders are effected.
4. Long Lead times.

Question 5

What is RPM? Traditional RPM process?

Answer 5

Rational Planning Module.
Objectives > Audit position > Create strategic choice > Evaluate and select > Implementation (Also feedback and monitor)

Question 6

What is JSW and what’s their take on RPM?

Answer 6

John, Scholes and Watson.

RPM consist of interdependent 3 parts. Strategic choice + Strategic Position / Analysis + Strategic Action / Implementation.

Question 7

What is strategic position / analysis consist of? (4)

Answer 7

It is auditing where we are. Business capabilities such as weakness and strength. External Factors such as opportunities and threats. Culture. Also, Expectation of stakeholders.

Question 8

What does strategic choice consist of? (3)

Answer 8

Generate, Evaluate and Select.

Question 9

Which ways can a strategy be persued?

Answer 9

Internal growth and external growth such as mergers.

Question 10

What is implementing a strategy process? 3 key elements?

Answer 10

Re structure, Enable, Monitor Progress.

Question 11

Why does strategic drift occur? (4)

Answer 11

1. The senior management ignores a problem when there is one and they know about it.
2. Complacency sets in - The success that the business is built upon is assumed to work without change.
3. Failing to adapt to environment changes.
4. Discovery that worked before don’t work anymore.

Question 12

What are the 4 phases of drift?

Answer 12

1. Incremental Change.
2. Strategic Drift.
3. Flux.
4. Transformation or Death.

Question 13

Define strategic drift? What is it?

Answer 13

It is the gradual deterioration of the ability of an organization to get competitive advantage by adapting to the environment. A cognitive slop in the ability to meet organization objectives

Question 14

What are causes strategic drift found in?

Answer 14

Cognitive mapping and organization culture. Cognitive assumptions are usually limited by intuitive thinking. Managers assumptions create the culture which greatly influences decision making.

Question 15

Three main approaches to avoid drift?

Answer 15

1. Flexibility.
2. Strategic resilience.
3. Early warnings system.