Lecture 2 Flashcards
1
Q
What does Strategy require?
A
- Requires Top-management decisions
- Requires considering the external environment
- Requires considering the internal resources
- Affects the firm’s long-term prosperity
2
Q
Strategy Formulation
A
analyses the context in which the organisation operates
- External Environment
- Internal Environment
- SWOT analysis
- Multi-business environment
3
Q
What is External Environment – Remote Environment?
A
Consider economic trends in market segments when a strategy is set
4
Q
What is Industry/Operating Environment?
A
- Bargain power of supplier
- Bargain power of customers
- Availability of substitutes
5
Q
What is SWOT?
A
A technique used to evaluate between he internal resources and external environment
- Strengths
- Weakness
- Opportunities
- Threats
6
Q
What is BCG Growth-Share Matrix?
A
Position businesses in the portfolio according to their ability generating cash in relation to market growth
- Compare strengths to determine the future strategy
7
Q
4 perspectives of KPI
A
- Objectives
- Measures
- Targets
- Initiatives
