Pointers Flashcards
What is the first stage of the strategic management process?
Goal Setting (Defining Vision and Mission)
This stage involves establishing the organization’s purpose, vision, and mission, as well as defining long-term objectives.
What analytical tools are used in the Environmental Scanning and Analysis stage?
PESTEL, Porter’s Five Forces, SWOT, value chain analysis
These tools help assess the external environment and internal capabilities.
What does the Strategy Formulation stage involve?
Developing corporate-level, business-level, and functional-level strategies
This stage includes evaluating strategic options and ensuring alignment with organizational goals.
What is the main focus of the Strategy Implementation stage?
Translating strategies into actionable plans and allocating resources
Communication and engagement with stakeholders are also critical in this stage.
What key activities are involved in Strategy Evaluation and Control?
Monitoring implementation, assessing outcomes, and using performance metrics (KPIs)
Adjustments may be made based on feedback and changing circumstances.
True or False: Analysis alone is sufficient for effective decision-making in strategic management.
False
Integrating analysis with intuition is essential for well-rounded decision-making.
What is the role of intuition in strategic management?
It allows leaders to leverage experience and instincts, especially in ambiguous situations
Intuition complements analytical insights by enhancing adaptability.
What does the VRIO framework assess?
Resources and capabilities to determine sustainable competitive advantage
It evaluates resources based on Value, Rarity, Imitability, and Organization.
Fill in the blank: The vision statement outlines the long-term __________ of the organization.
aspirations
It defines what the organization hopes to achieve in the future.
What are the four perspectives of the Balanced Scorecard?
- Financial Perspective
- Customer Perspective
- Internal Business Process Perspective
- Learning and Growth Perspective
Each perspective provides a different view of organizational performance.
What does a strategy map illustrate?
How an organization’s strategic objectives are linked across the four perspectives of the Balanced Scorecard
It shows cause-and-effect relationships that drive organizational performance.
What is the purpose of the Financial Perspective in the Balanced Scorecard?
Evaluates financial performance to ensure strategy leads to profitability and growth
Common metrics include revenue growth, ROI, and cash flow.
How can the Learning and Growth Perspective impact other perspectives?
Improvements in Learning and Growth enhance Internal Processes, which leads to better Customer Satisfaction and increased Financial Performance
This illustrates the interconnectedness of the Balanced Scorecard perspectives.
What is the implication if a resource is valuable but not rare according to the VRIO framework?
It leads to competitive parity
This means that while the resource adds value, it does not provide a competitive advantage.
What is the significance of a clear vision and mission statement?
Provides direction, aligns stakeholders, and guides strategic decision-making
They also shape organizational culture and support branding.
What does the term ‘strategic agility’ refer to?
The ability to balance rigorous analysis with flexible intuition in decision-making
This is crucial for adapting to rapidly changing environments.
True or False: A well-crafted mission statement focuses mainly on long-term aspirations.
False
A mission statement defines the current purpose and how the organization delivers value.
What is one example of how intuition can enhance analytical insights?
Leaders may sense untapped opportunities or emerging threats not captured by data
This can lead to proactive strategic initiatives.
What does the term ‘stakeholder management’ imply in strategic management?
Understanding and managing the expectations and motivations of stakeholders
This helps improve relationship management and negotiation outcomes.
Fill in the blank: The __________ framework helps assess whether a company’s resources can lead to a sustained competitive advantage.
VRIO
It evaluates resources based on four criteria: Value, Rarity, Imitability, and Organization.
What is a key benefit of using a Balanced Scorecard?
Provides a comprehensive view of organizational performance
It encourages long-term thinking beyond short-term financial goals.
How does a strategy map improve communication within an organization?
It visually conveys strategic priorities and clarifies how strategies deliver results
This simplifies discussions with stakeholders.
What is the purpose of a strategy map?
Aligns strategic initiatives with business goals, clarifies complex strategies, connects operations to long-term success, guides informed decisions.
A strategy map is a visual representation that helps organizations understand their strategic objectives and how they interrelate.
What are the objectives of the Financial Perspective in a strategy map?
- Increase revenue through new service offerings
- Optimize IT operational costs
- Improve return on technology investments
These objectives aim to enhance profitability and stakeholder value.
How do customers perceive us according to the Customer Perspective?
- Enhance customer satisfaction through reliable IT solutions
- Deliver innovative and customized solutions
- Ensure fast and secure service delivery
This perspective focuses on understanding and improving customer experiences.
What processes must we excel at in the Internal Business Process Perspective?
- Streamline software development (Agile/DevOps adoption)
- Strengthen cybersecurity and data privacy
- Improve IT infrastructure uptime and scalability
- Foster continuous innovation (R&D, product enhancements)
Excelling at these processes is crucial for operational efficiency.
What objectives fall under the Learning & Growth Perspective?
- Upskill teams in emerging technologies (AI, Cloud, Blockchain)
- Cultivate a culture of innovation and agility
- Invest in robust IT tools and collaboration platforms
- Enhance knowledge-sharing practices
This perspective emphasizes the importance of employee development and technological advancement.
Fill in the blank: By investing in employee skills and collaborative tools, we can _______.
streamline development cycles and strengthen cybersecurity.
This statement illustrates the cause-and-effect relationships in a strategy map.
True or False: Improving customer measures alone constitutes a strategy.
False
Customer measures are outcomes, not inherent strategic plans.
What is a unique value proposition in the context of strategy?
A unique value proposition differentiates a company from its competitors, providing distinctive activities that cannot be easily replicated.
This is crucial for effective strategy formulation.
What is the significance of coherent, integrated choices in strategy?
Strategy involves trade-offs and deciding what not to do.
Fragmented efforts can arise from misalignment of customer measures with internal capabilities.
What is the difference between tactical moves and strategic direction?
Tactical moves are short-term improvements; strategic direction answers broader questions about market positioning and customer needs.
Understanding this distinction helps in effective strategy formulation.
What is essential for sustaining long-term competitive advantage?
A clear strategy that addresses how to protect and grow the customer base uniquely and sustainably.
Short-term efforts may yield temporary gains without a sustainable strategy.
What are some opportunities for companies entering emerging markets?
- First-Mover Advantage
- Untapped Customer Segments
- Infrastructure Development and Public-Private Partnerships
- Leapfrogging Technologies
- Low-Cost Manufacturing and Supply Chains
- Rapid Urbanization and Growing Middle Class
- Sustainability and Green Opportunities
- Digital Transformation and E-Commerce Growth
Each of these opportunities requires tailored strategies considering local conditions.
What is a joint venture (JV)?
A partnership with a local company to share ownership, risks, and profits.
JVs provide access to local market knowledge and networks.
What are the advantages of greenfield investments?
- Full control over operations and quality
- Customizable facilities
- Retains all profits generated
However, it also requires high capital investment and longer timeframes.
What is franchising in market entry strategies?
Licensing a business model, brand, and operational support to local franchisees.
This strategy allows for rapid expansion with lower capital requirements.
What are the challenges of licensing as a market entry strategy?
- Risk of intellectual property theft
- Limited control over operations
- Local licensees may underinvest in marketing
Licensing can provide low-risk entry but has significant drawbacks.
What should companies consider when choosing an entry strategy for emerging markets?
- Market Potential
- Regulatory Environment
- Cost and Resource Commitment
- Control Needs
- Cultural Fit
- Risk Tolerance
These factors influence the success of market entry strategies.
What is the best strategy for companies testing market viability?
Exporting allows for low-risk, minimal investment market entry.
This strategy lets companies gauge demand before deeper commitments.
