Intro - What is strategy

Question 1

Why do companies need strategy?

Answer 1

Because of competition and a world that constantly changes

Question 2

What types of trends is there

Answer 2

Unaffected (long term)
* Befolkningstal
* Levealder

Affected (short term og long term)
*Økonomi
*Arbejdsløshed

Question 3

What is strategy - definition?

Answer 3

1. A strategy is a long term plan of action designed to achieve a particular goal, most often “winning”. Strategy is differentiated from tactics or immediate actions
2. (Johnson, Scholes & Whittington) Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.

Question 4

Levels of strategy?

Answer 4

Triangle model.
1. From the top Corporate level
- What business are we in and where?

2. middle part Business level
   - How do we compete
3. the bottom part is operational level
   - How do we support the business level strategy?

Question 5

What is strategic management?

Answer 5

Strategic management includes understanding the strategic position of a organisation,
making strategic choices for the future, and managing strategy in action.

Question 6

7 questions of strategic management
(private sector primarily)

Answer 6

1. What business are we in?
2. How do we compete in that business?
3. What is our business model?
4. What are the critical success factors for us?
5. How are we performing?
6. How do we best structure our organization?
7. What culture is needed?

Question 7

7 questions for public sector

Answer 7

1. What is our purpose and where is the limit?
2. What do we deliver, to whom, and how do we satisfy them?
3. What is our business model?
4. What are the critical success factors for us?
5. How are we performing?
6. How do we best structure our organization?
7. What culture is needed?

Question 8

How can we describe individual decision making

Answer 8

Two ways to describe individual decision making by managers – Rational approach and Bounded rationality perspective.

Question 9

What is rational approach?

Answer 9

• Suggests how managers should make decisions.
• Stresses the need for systematic analysis of a problem followed by choice and implementation in a logical sequence.
• An ideal method, though not fully achievable in the changing environment.
• 8 steps in the rational approach to decision making.
  The steps can be delt in two divisions. Problem identification and problem solution.

Question 10

What is the bounded rationality perspective?

Answer 10

▪ Bounded rationality perspective describes how decisions are made under severe time and resource constraints.
▪ There is a limit to how rational managers can be—time, knowledge, and resource constraints
▪ Constraints and tradeoffs
- Constraints impinge the decision maker
▪ The role of intuition
- Experience and judgment rather than logic - Not simply ‘gut feeling’

Question 11

Name 4 types of organizational decision making

Answer 11

Four types of organizational decision making process
- The management science approach
- The Carnegie model
- The incremental decision process model - The garbage can model

Organizational decision making processes are influenced by a number of factors
- Internal structure
- Degree of stability or instability of the external
environment