College 1 Flashcards

1
Q

What is corporate level strategy?

A

The way a company creates value through the configuration and coordination of its multimarket activities

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2
Q

What are 3 important aspects of the definition of corporat level strategy?

A
  • Value creation as the ultimate purpose of corporate strategy
  • The focus on the multimarket scope of the corporation (Configuration), including its product, geographic, and vertical boundaries.
  • The emphasis on how the firm manages the activities and businesses that lie within the corporate hierarchy (Coordination)
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3
Q

Een gediversifieerde organisatie heeft 2 levels van strategie. Welke zijn dit?

A

Business level strategy (competitive strategy)

  • How to create competitive advantage in each business in which the company competes

Corporate level strategy (company wide strategy)

How to create calue for the corporation as a whole

The business level strategy moet the corporate level strategy ondersteunen anders is er geen synergie

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4
Q

Teken deCorporate level triangle en licht deze toe

A

Resources, businesses and organization represent the foundations of corporate level strategy. Only when they align in pursuit of a vision, motivated by the appropriate goals and objectives, can they create corporate advantage.

Corporate Strategy is what makes the corporate whole add up to more than the sum of it business unit parts
Er is geen single best corporate level stategy

Corporate level stategy creëert waarde als de 5 elementen samenhangen.

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5
Q

Beschrijf de elementen van de corporate stratagy triangle . Vision, goals & objectives

A
  • Vision is concerned with establishing a firm’s boundaries
  • Goals refer to the qualitative intentions
  • Objectives are specific, short, term, quantitative targets
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6
Q

Beschrijf de elementen van de corporate stratagy triangle: Resources

A
  • The ultimate source of value creation, the building blocks of strategy
  • They determine what a firm can do and what their market opportunities are
  • Firms need different important resources in order to create distinctive strategies
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7
Q

Beschrijf de Businesses van de corporate stratagy triangle

A

The industries or markets in which a firm operates
The set of industries determines the extent to which firms can share resources

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8
Q

Beschrijf de Corporate office uit de corporate stratagy triangle

A
  • Careful design of structure, systems and processes
  • Headquarters are important, creating fit bewtween business units
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9
Q

Beschrijf de Corporate advantage uit de corporate stratagy triangle

A

Corporate advantage and corporate value can established when a firm’s businesses uinits are able to create more value within the firm than outside the firm as independent entities

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10
Q

Er zijn drie niveaus van diversificatie benoem en beschrijf deze

A
  • Low levels of Diversification*
  • *Single-business** >95% of revenues comes from a single business unit

Dominant-business Between 70% and 95% of revenue come from a single business unit

Moderate to High Levels of Diversification

Related-constrained <70% of revenuescomes from the dominant business and all businesses share linkages

Related linked
Less thang 70% of revenue comes from the dominant business and there are only limited links between businesses

Very high levels of diversification

Less than 70% of revenue comes from the dominant business, and there are no common links between businesses

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11
Q

What is Strategy according to Chandler, 1962?

A

Strategy can be defined as the determination of the basic long-term goals and objectives of an enterprise, and the adoption of course of action and the allocation of resources necessary for carrying out these goals. Chandler, 1962,

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12
Q

Explain Strategy as a deliberate thinking process

A

A company can outperform rivals only if it can establish a difference it can preserve.

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13
Q

What are the strategic approaches towards complex and wicked Strategy Tensions?

A

Organizational Sense Making

Reasoning by Analogy

‘Reasoning by analogy is a common form of logic among business strategist. Facing a novel (and complex) opportunity or predicament, strategists think back to some similar situation they have faced or heard about, and they apply the lessons from that previous experience (direct or vicarious learning = Change in behavior due to the experience of observing a model).’ (Gavetti, Levinthal adn Rivkin, SMJ, 2005,p.693)

Open strategy

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14
Q

Ronald Coase on Why Firms Exist

A
  • The “costs of using the price system” came to be called transaction costs.
  • The main reason why it is profitable to establish a firm would seem to be that there is a cost of using the price mechanism.
  • The size of the firm is not its output (Q) but the number of transactions or activities within its boundaries.
  • Firms exist in order to economize on buying and selling everything.
  • Firms exist to reduce transaction costs
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15
Q

Beschrijf Corporate Mission Elements

A
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16
Q

Beschrijf Vision

A

Articulates a view of a realistic, credible, attractive future for the organization, a condition that is better in some important ways that what now exists (Bennis and Nanus, 1985)

17
Q

Beschrijf Mission

A

concerns the way the organisation is managed today (behavior standard) and its purpose (it is a timeless explanation of the organization’s identity and ambition)

18
Q

Beschrijf strategic intent:

A

envisions a desired leadership position and establishes the criterion the organisation will use to chart its progress.

19
Q

Profitability and Responsibility Dealing with the Paradox

A

Profitability To be an attractive investment, a firm must earn a higher return on the shareholders´ equity than could be realized at a bank

Responsibility Acting in the interest of others, even when there is no legal imperative

20
Q

Teken de CSR pyramide

A
21
Q

Perspectives

A
22
Q

Beschrijf CSR

A
  • Value: doing good
  • Citizens, philanthropy, sustainability
  • Discretionary or in response to external pressure • Separate from profit maximalization
  • Agenda is determined by external reporting and personal preferences
  • Impact limited by corporate footprint and CSR budget
23
Q

Beschrijf CSV (creating shared value)

A
  • Value: economic and societal benefits relative to cost
  • Joint company and community value creation • Integral to competing
  • Integral to profit maximization
  • Agenda is company specific and internally generated
  • Realigns the entire company budget