Chapter 1 - Strategic management (parts 1-4) Flashcards
What is the definition of ‘strategy’?
A course of action, including the specification of resources required, to achieve a specific objective
5 Ps of strategy
Plan Pattern Ploy Position Perception
What does SBU stand for
Strategic Business Unit
What are the 3 levels of strategy (top to bottom)?
Corporate - long term
Business - medium term
Operational - short term
What does corporate strategy focus on (3 points)?
Geographical presence
Products or services offered
How resources are allocated
What does business strategy focus on (2 points)?
Which products/services for which particular market
How to gain competitive advantage in a particular market
What does operational strategy focus on (3 points)?
looks after component parts to deliver business/corp strategy:
e.g. Opening hours
Training/development of local staff
No. of checkouts open per 100 customers in store
Order the rational model cycle (6 points)
- Mission + objectives
- Corporate appraisal (2 branches - postion audit and environmental analysis)
- Strategic option generation
- Strategic evaluation + choice
- Strategic implementation
- Review and control
Mission statement elements by Campbell (4 points)
RSVP: Reason (purpose) Strategy Values Policies and behaviour standards
Mission statement elements by David (8 points)
BC SCAMPS:
Basic values and standards of behaviour
Customers
Survival, growth and profitability Concern for public image Attitude towards employees Markets Products and services Strengths and distinctiveness from competitors
3 ways in which objectives should be consistent
Vertically
Horizontally
Over time (a.k.a. temporal)
Objectives should be… (5 points)
SMART: Specific Measurable Agreed/Attainable Realistic/Relevant Time bound
What should objective criteria be (3 points)
SAF:
Suitable - in light of mission
Acceptable - to interested stakeholders
Favourable - given resources available
Name 3 criticisms of the rational model
Focuses too much on LT
Not apt for dynamic markets
Generating strategy is not a process that should be restricted or forced
