Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Strategic Management > Lesson 1: Introduction > Flashcards

Lesson 1: Introduction Flashcards

1
Q

What are the characteristics of strategic decisions?

A

Long term perspective

Create strategic and competitive advantages

Concerning the scope of the organisation

Involves big amounts of resources

Influence operational decisions

Reproduce the power balance between stakeholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the definition of strategy?

A

Strategy is the direction and scope of an organisation over the long term which achieves advantages in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholders’ expectation.

Or the long term development of the firm.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the 3 horizons for strategy?

A

1) Horizon 1: extend and defend core business. Implementing the existing strategy.
2) Horizon 2: build emerging businesses: new products
3) Horizon 3: create viable options: 5/8y: discover new markets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the levels of strategy?

A

1) Strategy at the functional level
2) Strategy at the corporate level
3) Strategy at the SBU level (Strategic Business Unit)
4) Operational strategy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the strategy at the corporate level

A

Finance and legal

Aim and scope of the organisation

Value creation for the shareholders

Portfolio management

Organisational design and human resource management

Accounting and finance –> to have control over the different departments

Corporate values

Corporate communication with key stakeholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the strategy on the level of SBU?

A

Marketing and Technology

Strategic business unit level

Competitive strategy

Price strategy and marketing

Choice of distribution channels

Market and product development

Production and services

Choices of production technology

Resource allocation within the SBU

Structuring and control within the SBU

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Strategy levels on the operational level?

A

Integration of resources, processes, people and skills

Strategy implementation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is strategy level at the functional level

A

Marketing strategies

Organisational development

Control strategies

Investment and risk strategies

Purchase, production and distribution strategies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is a mission?

A

Definition: overriding purpose of the organisation. The reason for existing.
What business are we in.

Eg. To transport people over long distances very fast = airline.

Personal example: be healthy and fit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a vision?

A

Vision or strategic intent is a desired future state = the aspiration of the organisation.

Eg. To be the leading company in Europe.

Personal example: to run the London Marathon.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are goals?

A

General statement of aim or purpose (qualitative)

Deliver a good service to a reasonable price to all customer segments.

Personal example: lose weight and strengthen muscles.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are objectives?

A

Quantitative or more specific statements of goals.

Eg: number of passengers, market share, return on investment.

Personal: lose 5 kilos by end of the year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is strategy?

A

Long term direction, goals, action poan, timable and budgets.

Eg. Buy 25 new airplanes, buy new gates, develop booking system.

Personal example: diet program, exercise program.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the elements in strategic management?

A

1) Strategic positioning = strategic analysis:
Analysing the environment, company, political and cultural context

2) Strategic choices = strategy development
Developing competitive strategies, corporate and growth strategies, internationalisation, strategies for innovation

3) Strategy in practice = strategy implementation
Strategy through organisational design, design of management systems, functional design, managing changes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the strategy in small businesses?

A

The manager is often also the owner.

Strategy have the form of a vision in the owners head.

Action, analysing and thinking happens simultaneously.

Strategy have the form of flexibility, moving fast and niche.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the strategy in multinational companies?

A

Geographical and business scope of the organisation

Strategy is about organisational structuring and resource allocation

Management is about control, finances and communication.

Focus on corporate values

17
Q

What is the strategy in professional service firms?

A

Professional standards and norms set the strategy
Strategy is about positioning and development of competences
Strategy is a dialog and and emergent process
It is the professional that negotiates the strategy

18
Q

What is the strategy in public organisations?

A

Strategy is divided between politicians and administrators

Strategy is a discourse

Strategy is about political power, efficiency/quality and legitimacy.

Strategy is very often of symbolic nature

19
Q

What are challenges for strategic management?

A

1) Strategic drift
Gap between organisation and stakeholder expectations
Often connected to a strong culture and earlier successes

2) Continued pressure on strategy development
Globalisation and international competition
It and technology
Politics and legislation
New cultural trends
Economic development

20
Q

What are some other dilemmas in strategic management?

A

Complexitiy and ambiguity
Combining of both vision and action
To be both analytical and creative
To build a bridge between different stakeholder
Create new posibilities
Create continuity and efficiency on one hand and change and innovation on the other hand.

21
Q

Why do we combine strategy and economic theory?

A

The strategy field is highly fragmented and is made up by many concepts and models.

There is a need for getting an economic overview of strategic managment

A need to uncover the assumptions, ideas and theories behind the strategy models and concepts.

22
Q

What are the models for economic value creation by positioning of the firm?

A

Porter’s Five Forces model and Generic Competitive Strategies
Draw on the SCP paradigm and neoclassical theory = monopoly rent.
B&O as an example.

23
Q

What is value creation through developing competences?

A

Categories for resources, competences and VRIO
Resource based theory and Penrose (Ricardo Rent) and evolutionary theory
Danske Bank as an example.

24
Q

What is value creation through organising?

A

Diversification, growth methods and the corporate structure

Transaction cost theory

FLSmitdh as an example

25
Q

What is value creation through management?

A

Managing the stakeholder balance, decision-making and logical incrementalism

Behaviourism

TDC as an example

26
Q

What is value creation as long term commitment and moderation?

A

Mission, vision, strategy and values

Neoinstitutional and consitutional political economics theory

Novo Nordisk as an example.

27
Q

What is neoinstititutional theory?

A

Explains why we have firms

We have firms and strategy in order to solve problems concerning uncertainty and payment of the stakeholders

28
Q

What is constitutional theory?

A

Explains why we ought to hold on to the same strategy for a long time.

Strategies solve a time inconsistent problem among the stakeholders through a constitution and thereby create competences and identity over time.

29
Q

What is transactions cost theory?

A

Explains when it is most efficient to organisa transactions through the market, alliances and through organisations.

Strategy is about determining the scope of the organisation

30
Q

What is evolutionary and resource based strategy?

A

Explains how firms develop.

Strategy is about variation and selection of activities and insitutionalism of actions over time = transmission

31
Q

What is behaviourism?

A

Explains strategy development processes

Strategy is all about managing the balance of stakeholders, optimising the decision-making capacity and make sure of learning and adoption.

32
Q

What is managerialism?

A

Explains the difference between goals of the owners and managers.

Strategy is about the balance between return, risk and growth.

33
Q

What is the principal agent theory

A

Explains how we create incentives to pursue specific goals

Strategy is about organising the formal government structure

34
Q

Neoclassical theory and the SCP paradigm

A

Explains how competitive forms and price forms and price formation

Strategy is about positioning and creating a monopoly like situation within the industry

35
Q

What are the implications for practice about the different types of economic theories

A

Firms can not only create strategy from one set of theories and models

In reality strategy development typically includes the following areas:
Analyses of the environment and the competences
Managing stakeholders
Developing, competitive, corproate and growth strategies

Long term commitment through formulation of mission, vision, strategy and values.

Handling information and strategy development process.

Strategic Management (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions