L1 - Business Strategy: Vision, Mission and Objectives Flashcards
What is management?
Management = POLC Framework
Management is the planning, organizing, leading and controlling of human and other resources to achieve organzational goals effectively and efficiently.
What is planning?
Planning = Choose appropriate organizational goals and courses of action to best achieve those goals
What is organizing?
Organizing = Establish task and authority
relationships that allow people to work together to achieve organization goals
What is leading?
Leading = Motivate, coordinate and energize individuals and groups to work together to achieve organizational goals
What is controlling?
Controlling = Establish accurate measuring and monitoring systems to evaluate how well the
organization has achieved its goals
What is a manager?
What are the types of managers and on which of the managerial functions do they spend their time on?
What is an organization?
An organization transforms resources into products or services, using production factors such as capital and labor
What is strategy?
- Strategy = Art of competing differently
- Strategy consists of the competitive moves and business approaches that managers are employing to grow the business, attract and please customers, compete successfully, conduct operations, and achieve the targeted levels of organizational performance”
- It’s about:
- How to outcompete rivals
- How to respond to market changes
- How to manage each functional unit
- How to improve performance
What is strategic management?
- Strategic management concerns the improvement of a company‘s financial performance, the strengthening of its long-term competitive position and the achievement of a competitive edge over its rivals
- A company achieves a sustainable competitive advantage when an attractive number of buyers prefer its products and services over the offerings of competitors and when the basis for this preference is durable.
What is a sustainable competitive advantage?
A company achieves an sustainable competitive advantage when an attractive number of buyers prefer its products and services over the offerings of competitors and when the basis for this preference is durable.
How can we identify a companies strategy?
- The patterns of actions that define a companies strategy
- Actions to enter new** geographic or product **markets exit existing ones
- Actions to capture emerging market opportunities and defend against external threats.
- Actions to strengthen market standing and competitiveness by mergerns & acquisitions
- Actions to strengthen competitiveness via strategic alliances and collaborations
- Actions to respond to changing** market **conditions or other external factors
- Actions used in R&D, production, sales and marketing, finance and other key activities
- Actions to strengthen competitive capabilities and correct market competitive weaknesses
- Actions to gain market share (e.g. lower prices, design, quality, customer service, etc.)
- Actions to diversify revenues and earnings by entering new markets
Is strategy static or dynamic?
How is a strategy different from a business model? How is it similar?
VPC Framework
How does the overview over the strategy process look?
What is stage 1 of the strategy process?
How is mission defined?
How are values defined?
How are objectives defined?
What is the balanced scorecard framework in terms of objective-setting?
What are financial and strategic objectives?
What are the subcategories of strategic analysis?
Stage 3: What are the levels of strategy formulation?
Stage 4: What is the actions agenda for executing and implementing strategy?
What do we do at stage 5: Evaluating performance?
What are the three tests at stage 5?
