E3 - 1. The Process of Strategy Flashcards
What is strategy? (5)
- The direction and scope of an organisation
- Over the long term
- Which achieves an advantage
- Through configuration of resources within the environment
- To fulfil stakeholder expectations
What are the 5 essential features of strategy?
- Considers the long term direction
- Considers the scope of activities
- Looks for strategic fit in the environment
- Builds on resources and capabilities
- Affected by values and expectations of stakeholders
Why is strategy hard in a not for profit? (3)
- Multiple stakeholders
- Multiple objectives
- Difficult to measure objectives
What are the 3 Es of a Value for Money audit in not for profits?
- Economy
- Efficiency
- Effectiveness
What are the 3 levels of strategy?
- Corporate (overall purpose and scope, how value will be added)
- Business (how to compete in particular markets and activities of SBUs)
- Operational (day to day use of resources, processes and people)
What are the 8 steps of the rational model of strategy formulation?
- Set Mission and objectives
- Corporate Appraisal
- Environmental Analysis
- Strategic Option Generation
- Strategic Evaluation and Choice
- Strategic implementation
- Review & control
- Position Audit
What is logical incrementalism?
Guiding actions towards a conscious strategy in a series of small scale steps
What is freewheeling opportunism?
Taking opportunities as they arise with little formal planning
What are emergent strategies?
Those which emerge over time as organisations innovate and respond to the market
What are the 3 main requirements for emergent strategies to succeed?
- Understanding of the business and organisation
- Freedom to develop and explore
- Freedom to fail
What is bounded rationality?
It is not possible to have perfect knowledge in advance of what environmental changes will occur
What are the 3 elements of Johnson and Scholes’ strategy process model?
- Choice
- Implementation
- Analysis
