Lecture 1 - What is Strategy?

Question 1

What are the 3 components to the method of creating a strategy?

Answer 1

Diagnosis (aim), Policy (methods), Coherent Actions (realised plan)

Question 2

To make money, what simple equation/outcome do you want to maximise the value of?

Answer 2

We want to maximise profit, which is P - C

Question 3

What is the downside of simply maximising P - C?

Answer 3

It doesn’t consider negative externalities, such as pollution

Question 4

What is the triple bottom line? What does this mean?

Answer 4

People, planet, profit. These are the 3 areas in which we should focus as a business to be successful in this day and age.

Question 5

What factors mean that sustainability is so important in business today? Give examples of each of these factors possible actions/impacts.

Answer 5

Consumer conscience (brand image, consumer action) and regulation (laws, fine, taxes)

Question 6

Name 3 reasons why we need a strategy.

Answer 6

Macro environment factors, new technology, competitor landscape, consumer behaviours. To know what we don’t do.

Question 7

What are the 3 approaches to strategy?

Answer 7

Deliberate (external environment), Inside-out (internally oriented, but still external environment), Resource-based (use what you have)

Question 8

Explain the deliberate approach to strategy.

Answer 8

Focussed on the external environment, it defines the strategy.
Weigh up opportunities and threats.
5 Forces.
DCFs and quantitative methods of evaluation.

Question 9

Explain the inside-out approach to strategy.

Answer 9

Learn what works.
Dynamic capabilities.
External environment defines the strategy.

Question 10

Explain the resource-based approach to strategy.

Answer 10

Use what you have/get.
Means-driven rather than goal driven.
Shape the environment.
Internal resources and capabilities shape the strategy.