lecture 5 Flashcards
what is a business strategy?
- future direction and actions
- approach to achieve specific objectives
- fundamental choices
- fit between organization and strategy
what are internal stakeholders?
employees, owners, board of direction
what are external stakeholders for the task environment?
- task environment affects the current working and the immediate future of the organization
- customers, competitors, media , government
what are external stakeholders for the general environment?
- more general factors that affect the task environment and therefor the organization
- economic, technological and international force
what is a strategy?
difinition of the future direction and actions of a company defined as approaches to specific objectives
what is a mission?
a statement of what a business wants to achieve and what business it is in reason for being and in adressing stakeholders
what is a vision?
the image of the future direction. this is derived from the mission and an input for strategy
why are vision and mission statements important?
it says something about what the company is and what it wants to become. they lead to strategy, goals and objectives
What is an emergent strategy?
a strategy that emerges over time due to changes in the environment, rather than being planned
what is the innovation strategy: business aligning?
having a general strategy and deriving from there what you should do with the technology
what is the innovation strategy: business impact?
you observe changes in technology which forces tou to redefine the strategy of the organisation
what is the innovation strategy: interaction model?
interaction between aligning and impact, one hand spurred by what the organization always wanted to do and the other hand spurred by changes in technology
what strategic tools do we know (tools to determine your strategy )
- PEST(EL) analysis
- porter’s five forces
- porter’s competative strategies
- tracy & wiersema value disciplines
- SWOT analysis
- balenced scorecard
- McFarlan’s strategic grid (specially IT)
what is the PEST(EL) analysis?
thinks about:
- what kind of business an organization is
- what kind of innovation an organization has
- with what factors an organization had to take into account
what is PESTEL an abbriviation for?
- Policy > tax and trade policies
- Economics > economic growth, interest
- Socio/ demographic > cultural barriers, health consciousness
- Technology > automation, R&D
- Environment > weather, climate
- Legal > law, copyrigth, safety
what is Porter’s five forces model?
a tool to use to assess the surrounding of your organization, important to find out what competitors are doing and what bargaining power of suppliers and customers is
what are porter’s five forces
- threat of new entrants
- threat of substitutes
- bargaining power of buyers
- bargaining power of suppliers
- rivalry among existing competitors
what is a counter for bargaining power of suppliers?
make connections with your suppliers
what is a counter for competitors?
innovate to become better, cheaper etc.
what is a counter for the bargaining power of buyers?
locking in buyers, making sure they only buy from you
what are porters’ generic competetive strategies about?
a way to classify what type of business your organization is in
what strategies does Porter distinguish is his generis competitive model?
- cost > having the lowest cost acros the industry
- differentation > being better than competitors
- focus > focus on a specific industry segment and customer
what are tracy and wiersemas value disciplines about?
same as porters’ generic competitive strategies, but they say you have to focus on all three strategies (threshold value).
what is SWOT an abbreviation for?
- strength
- weakness
- opportinuties
- threath
