Concepts of strategy

Question 1

What are the benefits of strategic planning?

Answer 1

• Improves fit with the environment
• Makes best use of scarce resources
• Ensures goals are met
  *Can create competative advantage
  *Ensures plans are properly implemented?

Question 2

What are the disadvantages of strategic planning?

Answer 2

• Time consuming
  *Creates bureaucracy
• Less relevant in a crisis

Question 3

What are the stages in the 3 stage planning modle (JSW)

Answer 3

Strategic analysis

Strategic choice

Strategy into action

Question 4

In the 3 stage planning model, what is strategic analysis?

Answer 4

External analysis to identify opportunities and threats

Internal analysis to identify strengths and weaknesses

Stakeholder analysis to identify key objectives and to assess the power and interest of different groups

Gap analysis to identify the difference between desired and expected performance

Question 5

In the 3 stage planning model, what is strategic choice?

Answer 5

Strategies are required to close the gap

Competitive strategy - for each business unit

Directions for growth - which markets/products should be invested in

Whether expansion should be achieved by organic growth, acquisition or some joint arrangement

Question 6

In the 3 stage planning model, what is strategy into action / implementation

Answer 6

Structuring

Enabling

Change

Question 7

What are the 4 phases of strategic drift?

Answer 7

1. Incremental change
2. Strategic drift
3. Flux
4. Transormation change or demise.

Question 8

How do you avoid strategic drift?

Answer 8

• Assess environment for changes
• have flexible systems
• break down barriers to change
• have clear understanding of the mission and objectives
• have strong leaders