Lesson 9

Question 1

Define strategy in the context of an organization.

Answer 1

An organization’s understanding of its business and its plan for future success.

Question 2

How Is Strategy Formulated?

Answer 2

involves defining the long-term direction and goals of an organization, taking into account its internal strengths and weaknesses, as well as external opportunities and threats.

Normally analyzing the swot, Porters 5, Pesto, VRIO…

Question 3

How is strategy implemented?

Answer 3

Focuses on putting the formulated plan into action through:

Resources allocation, structural alignment, leadership and communication, monitoring and adjustment.

Question 4

What are Mintzberg’s 5 P’s of strategy?

Answer 4

1. Plan 📋
2. Ploy 🪄
3. Pattern 🔁
4. Position 📍
5. Perspective 👁️

Question 5

What is the SWOT analysis used for?

Answer 5

To identify strengths, weaknesses, opportunities, and threats in strategy formulation.

Question 6

List Porter’s five forces for strategy analysis.

Answer 6

1. Threat of new entrants
2. Threat of substitutes
3. Power of suppliers
4. Power of customers
5. Competitive rivalry

Question 7

What does the VRIO framework analyze in the resource-based view (RBV)?

Answer 7

Whether resources are: Valuable, Rare, Inimitable, and Organized

Question 8

Define strategic HRM.

Answer 8

The integration of HR practices with an organization’s strategic objectives.

Question 9

Name three general HR strategies.

Answer 9

1. High performance
2. High commitment
3. High involvement

Question 10

What is the universalist approach in HRM?

Answer 10

Assumes there is one best way to manage HR regardless of context.

Question 11

What is the HRM vertical fit?

Answer 11

Says that the HRM strategy should be based on fit with national, contingent and organizational factors. 4 generic strategies: Talent acquisition, effective resource allocation, talent improvement, and cost reduction.

Question 12

What are HR bundles in horizontal fit?

Answer 12

Configurations of HR practices grouped to empower, motivate, and enhance skills.

Question 13

Name two common barriers to strategy implementation.

Answer 13

1. Resistance to change 2. Strategic drift

Question 14

What is strategic drift?

Answer 14

When an organization’s strategy fails to keep pace with changes in the external environment.

Question 15

How does culture influence strategy formulation?

Answer 15

Culture can restrict or encourage strategic change, shaping organizational direction.

Question 16

What are the three competitive strategies identified by Porter?

Answer 16

1. Cost leadership
2. Differentiation
3. Focus (niche)

Question 17

Why are social complexity and causal ambiguity important in RBV?

Answer 17

They prevent competitors from easily imitating an organization’s competitive advantages.