Chapter 1 - Strategic management (parts 5-7) Flashcards
Kotler: “Successful organisations look ______ ; Failures look _____”
out of the window
in the mirror
2 examples of theories and models that help analyse the environment
PESTEL - political, economic, social, technological, environmental and legal
Porter’s Five Forces
What is a position audit used for?
used to develop an understanding of an organisation’s current state and position
Johnson, Scholes & Whittington identified what key 4 areas of a position audit?
Threshold/basic resources - resources required to meet customer’s min requirements.
Threshold competencies - competencies required to meet customer’s min requirements.
Unique resources - resources that provide/underpin competitive advantage. hard for competitors to imitate/obtain
Core competencies - competencies that provide/underpin competitive advantage. hard for competitors to imitate/obtain
Kay identified what 4 areas of capability for a business to be distinctive?
Competitive architecture - relationships that are part of org (e.g. w/ suppliers, customers, employees, co-operating firms)
Reputation - this is a LT process
Innovative ability - enables firm to be ahead of competition which may require co-op with suppliers/customers/employees
Ownership of strategic assets - e.g.privileged access to raw materials or a patent
Stalk developed Kay’s analysis by arguing capabilities-based competition depends on what 4 principles?
Corp strategy is built on business processes
Processes have to be transformed into strategic capabilities to meet and exceed customers’ requirements
Creating strategic capabilities requires investment at a firm level and the transcending of internal barriers
The CEO must lead any programme of creating strategic capabilities
Stalk then says successful businesses will use their strategic capabilities to perform better than competitors in what 5 areas?
Ability to judge environment effectively and forecast changing requirements accurately
Adapability
Effectiveness
Speed of innovation
Provision of consistent customer satisfaction
Porter’s value chain - name support activities and primary activities
Support: Firm infrastructure Technology development HR management Procurement
Primary: Inbound logistics Operations Outbound logistics Marketing & sales Service
SWOT analysis - what tools are used for SW and OT respectively?
SW - Position audit tools
OT - Environmental analysis
What is gap analysis?
A tool which helps a company compare its actual performance with its potential performance
What are the 3 steps of approaching gap analysis?
Estimate where current strategy is taking us
Compare this with where we want to be
Devise strategy to close the gap
What did Johnson & Scholes define Critical Success Factors as?
The components of strategy where the organisation must excel to outperform the competition. These are underpinned by competencies which underpin this success
