concepts of strategy (I) Flashcards
define strategy
- unifying theme
- gives direction to the actions/decisions of an individual or organization
- METHOD OF ACTION DESIGNED TO ACHIEVE A GOAL/ EFFECT.
elements in succesful strategies
- clear, consistent and long-term goals
- profound understanding of competitive environment
- objective appraisal of resources
describe the strategic fit
- defined by the consistency of a firms strategy:
- external environment (EE)
- internal environment (IE)
why do some companies fail
- lack of consistency in EE and IE
- struggle to align strategies to internal resources and capabilities
what defines effective startegies
- functional startegies + individual decisions align with one another
- KNOWN AS: ACTIVITY SYSTEM
describe the SWOT analysis
internal environment:
1.strenghs–>
2. weaknesses
external environment:
3. opportunities
4. threats
difference between strategy and tactic
- strategy–> overall plan of using resources to establish a favourable position.
- tactic–> scheme for a specific action
difference between military strategy and buisnes startegy
M–> defeat enemies
B–> coexist with rivals
The transition of corporate planning to strategic planning
- past–> focus on how competitive environment determined profit
-> present–> industrial organization of economics to analyze profits.
define the resource-based view of the firm
- shift in the way of thinking about strategy
- based on identifying how they are different to their competitors + how to exploit these differences.
how do we define strategy TODAY
- as the environment becomes more turbulent–> the more must strategy embrace flexibility and responsiveness.
why do firms need strategy:
- assists in effective management for organizations.
why?
1. enhances decision making quality
2. facilitates coordination
3. focusing on long-term goals
ways in which strategy improves decision making
- acting as a heuristic–> reducing search for solutions to a problem
- integration of knowledge from different individuals
- facilitates use of analytical tools
4 statements through which companies communicate strategies
- mission statement
- statement of principles/ values
- vision statement
- strategy statement
describing strategy
- 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.
different types of strategy
- intended–> outcome of negotiation, compromise
- realized–> actual strategy
- emergent strategy–> decisions that emerge from the processes in which individual managers interpret strategy
the role of analysis in strategy formulation
- provide organisational framework
- improve flexibility as managers
how to apply strategy analysis
- identify current strategy
- analyze performance
- diagnose performance
- industry analysis
- analysing resources and capabilities
- formulate strategy
- implement strategy
corporate vs business startegy
C–> industry attractiveness
B–> competitive advantage
how to apply strategy analysis to not-for profits
- identify goals and performance indicators
- competition–> market for funding
describe strategy analysis
- determination of goals
- industry analysis
- analysis of resources and capabilities
- strategy implementation
describe the contingency theory
- effectiveness depends on internal and external factors such as
- market conditions
- competition
- organizational resources
