concepts of strategy (I)

Question 1

define strategy

Answer 1

• unifying theme
• gives direction to the actions/decisions of an individual or organization
• METHOD OF ACTION DESIGNED TO ACHIEVE A GOAL/ EFFECT.

Question 2

elements in succesful strategies

Answer 2

1. clear, consistent and long-term goals
2. profound understanding of competitive environment
3. objective appraisal of resources

Question 3

describe the strategic fit

Answer 3

• defined by the consistency of a firms strategy:

1. external environment (EE)
2. internal environment (IE)

Question 4

why do some companies fail

Answer 4

• lack of consistency in EE and IE
• struggle to align strategies to internal resources and capabilities

Question 5

what defines effective startegies

Answer 5

• functional startegies + individual decisions align with one another
• KNOWN AS: ACTIVITY SYSTEM

Question 6

describe the SWOT analysis

Answer 6

internal environment:
1.strenghs–>
2. weaknesses
external environment:
3. opportunities
4. threats

Question 7

difference between strategy and tactic

Answer 7

• strategy–> overall plan of using resources to establish a favourable position.
• tactic–> scheme for a specific action

Question 8

difference between military strategy and buisnes startegy

Answer 8

M–> defeat enemies
B–> coexist with rivals

Question 9

The transition of corporate planning to strategic planning

Answer 9

• past–> focus on how competitive environment determined profit
  -> present–> industrial organization of economics to analyze profits.

Question 10

define the resource-based view of the firm

Answer 10

• shift in the way of thinking about strategy
• based on identifying how they are different to their competitors + how to exploit these differences.

Question 11

how do we define strategy TODAY

Answer 11

• as the environment becomes more turbulent–> the more must strategy embrace flexibility and responsiveness.

Question 12

why do firms need strategy:

Answer 12

• assists in effective management for organizations.
  why?
  1. enhances decision making quality
  2. facilitates coordination
  3. focusing on long-term goals

Question 13

ways in which strategy improves decision making

Answer 13

• acting as a heuristic–> reducing search for solutions to a problem
• integration of knowledge from different individuals
• facilitates use of analytical tools

Question 14

4 statements through which companies communicate strategies

Answer 14

• mission statement
• statement of principles/ values
• vision statement
• strategy statement

Question 15

describing strategy

Answer 15

• establishing objectives for the future and determining how it will be achieved
• overall mission, what it seeks to become, and how it meets performance targets.

Question 16

different types of strategy

Answer 16

1. intended–> outcome of negotiation, compromise
2. realized–> actual strategy
3. emergent strategy–> decisions that emerge from the processes in which individual managers interpret strategy

Question 17

the role of analysis in strategy formulation

Answer 17

• provide organisational framework
• improve flexibility as managers

Question 18

how to apply strategy analysis

Answer 18

• identify current strategy
• analyze performance
• diagnose performance
• industry analysis
• analysing resources and capabilities
• formulate strategy
• implement strategy

Question 19

corporate vs business startegy

Answer 19

C–> industry attractiveness
B–> competitive advantage

Question 20

how to apply strategy analysis to not-for profits

Answer 20

• identify goals and performance indicators
• competition–> market for funding

Question 21

describe strategy analysis

Answer 21

• determination of goals
• industry analysis
• analysis of resources and capabilities
• strategy implementation

Question 22

describe the contingency theory

Answer 22

• effectiveness depends on internal and external factors such as
• market conditions
• competition
• organizational resources