Introducing Strategy

Question 1

Defining Strategy

Answer 1

determination of long-term goals, adoption of courses of action and the allocation of resource to achieve these goals

Question 2

• Strategy decisions are about:

6

Answer 2

• long-term
• scope of an organizations activities
• advantages
• changes in business environment
• building on resources and competencies
• values and expectations of stakeholders

Question 3

3 horizons

Answer 3

1. Extend and Defend core business
2. Build emerging businesses
3. create viable options

Question 4

Horizon 1

Answer 4

• Extend and defend core business
• improving performance to maximize remaining value
• business readily identified with the company name

Question 5

Horizon 2

Answer 5

• Build emerging businesses

- entrepreneurial ventures that could require substantial investment

Question 6

Horizon 3

Answer 6

• Create viable options
  • innovation and marketing investment
  • profitable growth down the road
  • disruptive technologies

Question 7

Stakeholders

Answer 7

• individuals or groups that depend on an organization to fulfil their own goals and on whom, in turn, the organization depends
• internal
  • employees, manager, owners
• external
  • suppliers, society, government, customers, shareholders

Question 8

Key Levels of Strategy 3

Answer 8

1. Corporate level
2. Business Level
3. Operational level

Question 9

Corporate level (3)

Answer 9

• entire company (multiple business units)
• which business should we be in?
• overall purpose and scope of an organization and how to add value to business units

Question 10

Business level (2)

Answer 10

• how to compete

- one business unit

Question 11

Operational Level (1)

Answer 11

• deliver the strategy, implementation

Question 12

Strategy Statements

Answer 12

• include the fundamental goals, scope of activities, and advantages or capabilities

Question 13

Operational Effectiveness

Answer 13

• performing similar activities better than rivals

Question 14

Strategic Positioning

Answer 14

• performing different activities from rivals or performing similar activities in different ways

Question 15

• Solid-Strategy 3 Parts:

Answer 15

context
content
process

Question 16

context

Answer 16

• internal and external

- what business we are in

Question 17

content

Answer 17

• who are the customers, what products do we offer, how do we achieve this

Question 18

process

Answer 18

• • formation and implementation

- organizational environment

Question 19

Strategic Position

Answer 19

• impact on strategy of the external environment, the organization’s strategic capability, the organizations goals and the organizations culture
• environment, purpose, culture, capability

Question 20

vision

Answer 20

• captures what you stand for and why you exist

Question 21

• Strategic Choices

Answer 21

• options for strategy in terms of both the directions in which strategy might move and the methods by which strategy might be pursued
• business-level, international, acquisitions and alliances, innovation, corporate-level

Question 22

Strategy in Action

Answer 22

• how strategies are formed and how they are implemented

Question 23

• Strategy work is done by

Answer 23

• managers, specialist strategic planners and strategy consultants