Chapter 14 - Strategy developement process

Question 1

Deliberate strategy developement

Answer 1

When a strategy is intentionally developed through formulation and planning.

Question 2

How can the intention behind deliberate strategy manifest?

Answer 2

• Strategic leadership as command – when the strategy is dictated by an individual
• Strategic leadership as vision - the vision of the founder for example could lead the strategic planning
• Strategic leadership as decision making – leaders and managers must use information and data to confidently take decision based on the information available.
• Strategic leadership as the embodiment of strategy – a founder or chief executive may represent the strategy of an organisation.

Question 3

Strategic planning

Answer 3

systematic analysis and exploration to develop an organisation’s strategy

Question 4

The stages in the planning cycle:

Answer 4

• Initial guidelines: a set of guidelines or assumptions about the exxterna environment is set as the starting point of the cycle
• Business-level planning: In light og the guidelines, business units or divisions draw up strategic plans to present to the corporate centre of an organisation. The corporate centre executives then discuss those plans with the business – managers to further revise the plans
• Corporate-level planning – The corporate plan results form the aggregation of the business plans
• Financial and strategic targets are the likely to be extracted to provide a basis ofor performance monitoring of businesses and key strategic priorities on the basis of the plan.

Question 5

The roles strategic planning plays

Answer 5

• Formulating strategy by providing means by which managers can understand strategic issues