Influences on Strategic Direction

Question 1

What factors could a business consider when deciding on a strategy or strategies?

Answer 1

• The expected costs
• The expected returns
• The opportunity costs
• The risk
• The fit with the resources and strengths of the business
• The impact on other stakeholders
• The ethical issues involved.

Question 2

What is meant by strategic positioning?

Answer 2

The strategic positioning of a business refers to how it its perceived relative to other businesses in the industry.

Question 2

Are strategic decisions short-term or long-term?

Answer 2

Strategic decisions are long-term and high-risk.

• Made by senior managers