Mock Exam A Areas Flashcards
What is bounded rationality?
The internal and external analysis undertaken as part of long-term strategic planning is often incomplete. This means that any strategies developed by the organisation based on this incomplete analysis may be ineffective.
What are the 5 types of power?
Positional Power
Resource Power
System Power
Expert Power
Personal Power
What is system power?
arises because a stakeholder has high visibility or political access and relevance to a particular situation
What is sustainability?
use of resources in such a way that they do not
compromise the needs of future generations. It also involves not polluting
the environment at a rate faster than they can be absorbed
What are the four sources of CSF according to Rockart?
Industry that the business is in
Company itself and its situation within the industry
Wider environment
Temporal organisational factors - areas of business that are cause of concern
What is a value shop?
Alternative representation of a value chain for a professional services firm.
Workshop which mobilises
resources to solve specific problems.
What are the four primary activities of a value shop?
Problem finding and acquisition
Problem solving
Choosing among solutions
Execution and control/evaluation
What is game theory?
concerned with the interrelationships between the competitive moves of a set of competitors and, as such, can be a useful tool to analyse and understand different scenarios
What are the two key principles of game theory?
- Strategists can take a rational, informed view of what competitors are likely to do and formulate a suitable response.
- If a strategy exists that allows a competitor to dominate us, then the priority is to eliminate that strategy.
What is triple bottom line?
Expands traditional accountancy reporting systems, looking at social and environmental performance, rather than simply financial performance
What are the three areas that the TBL model suggests measuring?
Profit
People
Planet
What is platform (r)evolution?
global platforms are becoming easier to establish and cheaper to run. Developments such as cloud computing and
mobile technology offer huge potential for innovation and quicker delivery of next-generation services.
What is Outcome Economy?
organisations have an increased ability to measure the outcomes of the services that they deliver; customers are more attracted to outcomes than just simply to products, and this is what organisations should focus on.
What is the rational approach?
logical, step-by-step approach
What is the emergent approach?
Strategies are not always formally planned. In reality, strategies may evolve in response to unexpected events that impact on the organisation.
What is Logical incrementalism?
approach suggests that strategy tends to be a small-scale extension of past policy, rather than radical change.
What is freewheeling opportunism?
suggests that organisations should avoid formal planning and instead simply take advantage of opportunities as they arise
What abilties must a leadership team demonstrate?
Inspirational Leadership
Competitive Edge
Establishing a strategic direction
Influence external parties
Collaboration
Business Judgement
Execution
Building talent
How do we close an efficiency gap?
undertaking an ‘efficiency drive’
looks to make cost savings and any other actions that will improve the output for a given set of inputs.
How do we close an expansion gap?
involves looking at ways that the organisation can expand its sales
How do we close a diversification gap?
this involves the organisation taking a riskier strategy where it looks to sell new products to new markets
What is market penetration?
The main aim is to increase market share using existing products within existing markets
What is market development?
Aims to increase sales by taking the present product to new markets
What is product development?
Focuses on the development of new products for existing markets
What is EDI?
electronic data interchange
involves the organisation linking itssystems to those of its suppliers, allowing for faster and more efficient paperless ordering
What is a dog?
has low market growth and low market share, therefore of little value to the business.
What is a star?
high growth potential, and so the business must invest in this to protect the current high market share from competitors.
What is a problem child?
a decision is needed. Either invest in order to grow market share (turn into a Star); or withdraw the product in due course and invest in other products that can produce greater returns.
What is a cash cow?
the aim is to maximise contribution and minimise unnecessary expenditure. The low growth potential in the market makes this unattractive to competitors, so consolidate your position.
