Introduction Flashcards
1
Q
What kinds of decisions are there?
A
- Operational
* Strategic
2
Q
What are operational decisions?
A
- Routine
- Generally structured
- Simple / complicated context
- Machines can make these
3
Q
What are strategic decisions?
A
- Usually in complex contexts
- Unordered worlds
4
Q
What is strategy?
A
Strategy is a ‘roadmap to a goal’
5
Q
What are the roots of bad strategy?
A
- Failure to face the real problem
- Mistaking goals for strategy
- Fluff
- Superficial restatement of the obvious combined with a generic sprinkling of buzzwords
6
Q
What are the components of good strategy?
A
- A diagnosis
- A guiding principle
- Coherent actions
7
Q
What is a strategic diagnosis?
A
- An explanation of the nature of the challenge
- A good diagnosis simplifies complexity by identifying certain aspects of the situation as being critical
8
Q
Fundamentally, what accounts for differences in performance?
A
- Differences in industry structure
* Differences in firm’s resources and strategies
9
Q
What is behavioural strategy?
A
- Integrating cognitive and social psychology into strategy
- Does away with the expectation in most economic models that actor act in a way that maximises available opportunities
- Lack of coherence as a field
