Intro to strategy

Question 1

What are Henry M 5 Ps for strategy

Answer 1

Plan
Ploy 
Pattern
Position
Perspective

Question 2

How does Henry M define strategy

Answer 2

Strategy is about process as well as outcome.

It can be deliberate, or implied in a series of actions.

Question 3

Corporate-level strategy (in Multi-Business Firms)

Answer 3

• Selection of businesses a company should own and run

- Development and coordination of the selected businesses

Question 4

Business-level strategy

Answer 4

• Action to create a competitive advantage over rivals in a chosen market or industry
• Developing new products, services & markets

Question 5

What are the four strategic Perspectives

Answer 5

Environment-led
Resource-led
Proactive
Reactive

Question 6

Environment-led perspective

Answer 6

Based on adapting to external opportunities and threats

• Enter attractive markets and niches
• Manage portfolios of businesses and products

Question 7

Resource-led perspective

Answer 7

Based on exploiting unique and valuable resources

• Create new markets and niches
• Enter markets in which the firm’s resources give it advantage
• Manage portfolios of resources and competences

Question 8

Proactive Strategy

Answer 8

Proactive search for and creation of new opportunities ‘innovative orientation’

• Emphasis on new markets or new products/services
• Constant search for new strategic position (“red queen competition*”)
• Advocated even for public sector / not-for-profit

Question 9

Reactive Strategy

Answer 9

Responding effectively to pressures as they arise
‘adaptive orientation’
-Emphasis on protecting market share or margins
-‘Defensive’ response likely to be unsuccessful given global markets and information flow
-Successful responses adapt positioning and operations to improve efficiency, effectiveness or responsiveness.

Question 10

Emergent strategy

Answer 10

A flexible approach is needed for an unpredictable world

Makes good use of autonomous action by lower level -managers

Question 11

“Planned Emergence”

Answer 11

The “process in which strategic planning systems provided a mechanism for coordinating decentralized strategy formulation within a structure of demanding performance targets and clear corporate guidelines.
-The study shows that these planning systems fostered adaptation and responsiveness, but showed limited innovation and analytical sophistication