Intro to corp strat

Question 1

What is corporate strategy concerned with?

Answer 1

The strategic decisions, such as where and how to compete, that a firm makes in order to achieve its long-term goals

Question 2

What is the overall goal of business?

Answer 2

To maximise profits….

Question 3

What makes strategy successful?

Answer 3

1 Goals that are simple, consistent and long-term

2 Profound understanding of the competitive environment

3 Objective appraisal of resources

4 Effective implementation

Goals must be feasible given the environment in which the organisation operates and given the resources and capabilities of the firm

Question 4

List the internal strategy factors

Answer 4

Goals and Values

Resources and Capabilities

Structure and Systems

Question 5

List the external strategy factors

Answer 5

Competitors

Customers

Suppliers

Question 6

Outline ‘strengths’

Answer 6

Resources and capabilities that enable an organization to perform well; these should be built upon in strategic planning

Internal

Question 7

Outline ‘weaknesses’

Answer 7

Characteristics that prevent the organization from performing well; these need to be addressed

Internal

Question 8

Outline ‘opportunities’

Answer 8

External trends, forces, events and ideas, which the organization can capitalize upon

External

Question 9

Outline ‘threats’

Answer 9

Events or forces that are outside the control of the organization, but which must be accounted for when making strategic choices

External

Question 10

List some strengths

Answer 10

Strong brand name

Product patents

Good reputation amongst customers

Cost advantages

Strong investment in R&D

Question 11

List some weaknesses

Answer 11

Weak brand name

Poor durability of products

Lawsuits or product recalls

High Cost Structure

Little investment in R&D

Question 12

List some opportunities

Answer 12

New technology

Mergers, joint ventures or strategic alliances

Movement to a different market, a developing market or a new international market.

An unfulfilled customer need

Question 13

List some threats

Answer 13

New technology

Competitors

Emergence of substitutes

Economic downturn

Environmental concerns

Question 14

Outline an S-O strategy

Answer 14

Aim to pursue opportunities that are a good fit to the firm’s strengths

Question 15

Outline an W-O strategy

Answer 15

Concentrate on overcoming weaknesses in order to pursue opportunities

Question 16

Outline an S-T strategy

Answer 16

Aim to use the firm’s strengths to reduce its vulnerability to external threats

Question 17

Outline an W-T strategy

Answer 17

Concentrate on preventing the firm’s weaknesses from making it vulnerable to threats