Five components of a well- developed strategy

Question 1

Discuss FIVE components of a well- developed strategy

Answer 1

1. SCOPE
2. GOALS AND OBJECTIVES
3. RESOURCE DEPLOYMENTS
4. IDENTIFICATION OF SUSTAINABLE COMPETITIVE ADVANTAGE -
5. SYNERGY

Question 2

1. SCOPE

Answer 2

Breadth of strategic domain (number, type of industries, market segments it competes in). Should reflect management’s view of the firm’s purpose or mission.

Question 3

2. GOALS AND OBJECTIVES

Answer 3

Desired level of accomplishment on multi dimensions of performance (return on investment, profit contribution of each of the products)

Question 4

3. RESOURCE DEPLOYMENTS

Answer 4

allocation of resources. Every organisation has limited financial and human resources. Decides how to allocate resources across businesses and product markets.

Question 5

4. IDENTIFICATION OF SUSTAINABLE COMPETATIVE ADVANTAGE

Answer 5

Differential advantage over competitors . How can the business position itself to develop and sustain a differential advantage over current and potential competitors? Business managers must assess distinctive competencies and strengths relative to competitors

Question 6

5. SYNERGY

Answer 6

Total is greater than sum of its parts. When all firms businesses, product- markets and competencies reinforce one another. Enables total performance