General Concepts Flashcards
What is RBV (resource based view)
Making returns exceeding opportunity cost
Capabilities should be:
Valuable
Rare
Inimitable
Immobile
What is the efficiency paradigm (value added and added value)
Over time added value becomes value added, raising market desire thus prices
Facets:
Factor input costs
Production and service costs
Value added
Added value
What is a strategy
The direction and scope of an organisation over the long-term
How do strategies develop
An intended strategy informs the deliberate strategy
Emergent strategy combines with the deliberate strategy to become realised strategy
Original intended strategy becomes unrealised due to the combination with the emergent strategy
Key strategy activities
Determination of organisational mission
Assessment of capability
Evaluation of external business environment
Setting of specific objectives
Determination of strategies
Implement, monitor, review
Key reasons for strategising
Development and synthesis internal competencies
Addressing external environment conditions
Essential elements of strategies
Vision
Mission
Objectives
Values
Critical success factors
KPIs
Establishment of strategy
What are the four levels of strategy
Corporate
Business
Project/operational
Functional
What is the strategic process
Strategy is assessed against critical success factors
These are analysed and evaluated using KPIs
Strategy then assessed against mission, vision and objectives
Actions decided
Types of market
Fragmented
Emerging
Mature
Declining
Geographical
What are Porter’s five forces
Bargaining power of supplier
Bargaining power of buyers
Competitive rivalry
Threat of new entrants
Threat of substitutes
What is the value chain
Describes the categories of activities in an organisation which together create a product or service
Consists of 5 primary activities and 4 support activities
Two types of benchmarking
Industry/sector benchmarking - comparing performance against other industry/sector organisations
Best in class benchmarking - comparing performance against best in class
What is corporate governance
Structure and systems of control by which managers are held accountable to those who have a legitimate stake in the organisation
Importance of corporate governance
Separation of ownership and control
To avoid corporate failures or scandals
Increased accountability
