Random Flashcards
1
Q
What are the key elements of the power-interest grid for assessing stakeholders?
A
Assess varying levels of interest and power for each stakeholder group.
X axis = Power (i.e. how much can they influence the organisations performance?)
Y axis = interest (i.e. how interested in strategy).
Can be crowds, context setters, subjects or players.
2
Q
What are crowds?
A
Low power, low interest.
Minimal influence on strategic decisions.
3
Q
What are context setters?
A
High power, low interest.
Ability to influence strategy, but unlikely to get involved.
4
Q
What is strategic fit v strategic stretch?
A
Fit = matching goals, assets and capabilities.
Stretch = stretching organisation to new opportunities, requiring extra resources and capabilities.
5
Q
What are subjects?
A
Low power, high interest.
May develop power of time due to lobbying.
6
Q
What is the difference between the structured / rational approach to strategy?
A
Structured is top down.
Linear -> sequential activities.
Sets basic, long-term goals, allocating resources necessary.
Orderly.
Iterative and independent.
7
Q
What are players?
A
High interest, high power.
Most critical stakeholders.
Exert significant influence over strategy.
8
Q
What techniques can be used to interact with stakeholder groups?
A
- Partner
- Manage
- Inform
- Consult
9
Q
What are the two strategy options according to Porter?
A
Cost leadership
or
differentiation (competitive advantage)
10
Q
What are the stages of strategy?
A
- External analysis
- Internal analysis
- Exploring options
- Developing strategy
- Implementing and monitoring.
11
Q
What are the phases of the industry life cycle?
A
Start-up
Growth
Maturity
Shake out
Decline or renewal
12
Q
What is the negative period of cash flow during the start-up phase called?
A
Valley of death
13
Q
A
14
Q
What are the 3 organisational levels of strategy?
A
Corporate (entire groups, large diversified organisations)
Business strategy (individual businesses)
Functional strategy (each function, e.g. marketing v HR v production)
15
Q
What are pains and gains in respect of value proposition?
A
Pains are obstacles that get in the way
Gains describe outcomes customers are trying to achieve.
Solved through pain relievers or gain creators.1
16
Q
What are the 3 business types according to Hagel and Singer?
A
Customer Relationship Business
Product Innovation Business
Infrastructure Business
17
Q
What is a vision?
A
- Guiding concept
-Where a business wants to be - Aspirational
18
Q
What is the mission?
A
- Reason for operating
- How to achieve mission
19
Q
What are values?
A
Guiding principles that direct / prioritise goals
20
Q
What are goals?
A
Targets and outcomes, to meet vision and mission
21
Q
What points should a vision address?
A
Picture of the future
Appeal to long-term interests
Attainable goals
Clear enough guidance
Easy to communicate (explain within 5 mins)
Ambitious enough to force people out of routines
22
Q
What is a business model?
A
How a business works + economic concept behind it
23
Q
What are challenges of globalisation?
A
Increased competition
Wider distribution needed
Macroeconomic
Legal + tax
Political
Labour
Financial (including exchange rates)
Social and culture
24
Q
What is arbitrage in the context of globalisation?
A
Coordinated use of resources in different countries to achieve lowest possible cost
25
What are the 3 leadership theories according to Leadership Institute at Harvard College?
1. Traits (leaders are born)
2. Behavioural (leaders can be trained)
3. Contingency approach (adapts to situation)
26
What is country club manager? (Blake & Moulton grid)
Focus on people's needs, relationships
27
What is a authority-obedience manager? (Blake & Moulton leadership grid).
Focuses on efficiency of tasks and operations.
28
What is a impoverished manager? (Blake + Moulton).
Focused on minimum effort to get job done.
29
What is strategic thinking?
Linking concepts to operational practices.
Being able to articulate the 'big picture'.
30
What are 4 dynamic capabilities required for effective strategy?
Strategic thinking
Flexible leadership
Flexible culture
Strategic alliances
31
What are the phases of transformational leadership?
1. Need for change is felt
2. Leader provides alternative vision
3. Strategies must be implemented
32
What is Kotters 8 step change process?
1. Establish urgency
2. Create powerful coalition
3. Create vision
4. Communicate vision
5. Empower others to act
6. Plan for short-term wins
7. Consolidate improvements
8. Institutionalising new approaches.
33
What are 4 change management styles according to Dunphy and Stace?
Collaborative (participation)
Consultative (areas of expertise)
Directive (limited participation)
Coercive (force change, top-down).
34
What are 4 styles according to Rothschild, and what stages of the industry cycle are they best suited to?
1. Risk takers-> start-up + growth
2. Caretakers -> moving from growth to maturity.
3. Suregons -> shakeout.
4. Undertaker -> decline.
35
What is "power distance"?
Way power is distributed in society and organisations
36
What is the classical view of ethics according to Friedman?
Primary obligation of management is to provide return to shareholders.
Seeking socially responsible goals will likely incur costs or de-focus the firm.
37
What is Guanxi?
Chinese term for "good connections".
38
What is the socio-economic view of ethics?
Leaders have responsibility to the society that creates and sustains them.
39
What is the 1st challenge / step involved in external environment analysis?
Defining the external scope and industry.
40
What is an industry?
Grouping of similar economic or commercial activities.
41
What is a market?
Grouping of organisations + their buyers.
42
What is the external environment?
Factors external to the organisation that influence their strategy
43
What are we trying to achieve with analysis of the external environment?
Factors that led the industry to the current state
and
What will affect future growth + profitability
44
What is an industry analysis?
Factors that affect both the growth and profitability of the industry, which in turn affects industry competition.
45
After the industry is defined, what is the next step?
Determine postion of the industry in the industry value chain.
Chain comprises the business processes, people and organisation that transform raw materials / talents into outputs.
46
What is upstream in the industry value chain?
Upstream moves back in the production process - towards the first step such as raw materials.
Downstream -> moves towards the end result (e.g. sales to consumer).
47
What is offshoring?
Organisation sends certain functions overseas, to cut costs.
48
What is segmentation?
Breaking down an industry into groups, based on their characteristics.
49
When analysing a segment, what information is needed?
1. Definition - what it does/doesn't include
2. Total segment size
3. Annual growth rate - at least 5 years
4. Long-term potential - competitive / disruptive forces.
5. Explanation of the data.
50
What do strategic leaders do?
Anticipate, envision, maintain flexibility and empower others
51
Is the productivity frontier an operational concept, or a economic concept?
Economic concept.
Maximum value a company can deliver at a given cost.
52
What are the features of the start-up phase?
Few competitors
Buyer power is low (few alternatives)
Supplier power is relatively high
Managers need to be innovators ...
53
What are the features of the growth phase?
New competitors, but low rivalry
Power of buyers still low (potential supply shortfall)
Competitive differentiation not as critical. Enough room for everyone.
54
What are the features of the maturity phase?
Rivalry intensifies, consolidation may happen
Buyers have greater power as increased supply to match demand
Efficiency, cost control and market segmentation is critical.
55
What are the features of the Shake-Out phase?
Plateau in demand
Organisations may leave industry
Challenge - do you leave, or stay and fight for position?
Protecting position is key and maintaining profitability.
56
What are the features of the Decline stage?
Threat of substitutes is high
Large number of firms leaving / unprofitable
57
What is a remote environment analysis?
General influences that affect an industry and are out of the organisations control.
PESTEL-E
Consider all factors that have significant impact on the entire industry.
58
What are 2 key things to consider in remote analysis?
1. How an industry has evolved to current state
2. Future changes likely to impact industry size and growth opportunities
59
What should be included in a remote analysis summary?
Assess each PESTEL-E issue
Summarise into +'s and -'s
Give major reasons for conclusion
60
How is industry profitability assessed?
Porter 5 forces model.
- Threat of new entrants
- Power of suppliers
- Power of buyers
- Level of substitute products
- Intensity of rivalry
61
What is a common strategy deployed to counter substitutes?
Product bundling
Makes more difficult for consumers to directly compare one product with another.
62
What are complements?
Product or services that add value to an industry.
e.g. Windows being added to the personal PC market complemented the hardware on offer.
63
64
When should you use PESTEL-E versus Porters 5 Forces?
Growth of an industry ... use PESTEL-E
Profitability of an industry ... use Porters 5 Forces
65
Should market segments be hetrogeneous or homogeneous?
Homogeneous (same characteristics) for members in that segment
Hetrogeneous (different characteristics) to other segments
66
What are some different approaches to market segments?
Demographic (e.g. age, income level, religion)
Psychographic (culture, lifestyle, personality type)
Behavioural (brand usage, buying behaviour, brand loyalty)
Distribution (by channel, e.g. online v in-store)
Geographic
67
True or false:
National boundaries are becoming less relevant for segmentation
True.
Due to more international trade, less tarrifs and technology, national boundaries are becoming increasingly blurred.
68
What should you consider with market segment analysis?
Who are the buyers and characteristics
How many buyers exist in each segment
Potential value, contribution margin, profitability
How loyal
How they shop
Potential growth rate
Does the organisation have the capabilities to service this segment?
Is the segment distinguishable from other segments?
69
What is the difference between strategic competition and natural competition?
Natural = "survival of the fittest". Weaker rivals are weeded out.
Strategic = deployment of resources, business systems.
70
What should competitor analysis start with?
Identifying basis of competition in industry.
What drives demand, choice, price & cost
Current and potential risks
What underpins competitive advantage.
71
What does "understanding the basis of competition" entail?
Key question: what would provide a sustainable competitive advantage?
Consider brand names, distribution networks, marketing and merchandising.
Preferrable that the list of factors are controllable in terms of cost by the organisation.
72
After competitive rivalry / basis of competition, what should be considered?
Determine competitive position of the organisation -> how it should differentiate itself from the competition.
73
What is **competitive positioning?**
How an organisation **differentiates** itself from competitors
74
What questions may be useful in terms of defining competitors?
What need does the product / service fill?
Which organisations have the same product that fills that need?
Which organisations provide an improved product or service to fill that need
Which organisation has a breakthrough product to change the game?
75
What are strategic groups?
Group of competitors ->
following a similar strategy or different target market to other industry players
76
True or false:
Consistency and discipline is not important in external analysis
False.
A consistent and disciplined approach, with appropriate leadership, is extremely important to consider all major relevant factors.
77
Why can information on the history of the industry benefit external analysis?
The more aniticpation and foresight the organisation will hold.
An advantage when planning future strategy.
78
How can leaders and managers use the information from **external environmental analysis**?
1. Position the organisation so capabilities can outdo competitive rivals
2. Influence the balance of various forces on the industry
3. Anticipate and respond to shifts in the current operating environment
79
Why is **internal analysis** critical?
Understanding whether the organisation is currently running successfully
How is it position to meet the strategic intent and future ambitions.
80
What are the broad factors looked at as part of internal analysis?
(a) Key Stakeholders
(b) Operational Performance
(c) Organisations capabilities
81
What are stakeholders?
Organisations, groups and individuals affected by a firms actions
Can be internal (board, employees) and external (customers, government)
82
What steps are involved in **stakeholder analysis**?
1. Identify stakeholders and their needs
2. Assess alignment of stakeholder needs
3. Assess relative power of stakeholder groups
4. Develop techniques for interacting with stakeholder groups
83
What **techniques** should be used to engage with **stakeholder groups** according to the **power-interest** grid?
1.** Partner** with stakeholders that have large power + interest - **players.**.
2.**Manage** stakeholders that have large power, limited interest - **context setters. **
3.**Inform** those that do not have much power or interest - **crowd.**
4.**Consult** those with high interest and low power. **Subjects**
84
What 3 step framework can be used for **performance assessment**? (SOP)
1. Strategic drivers - *what differentiates us from competitors?*
2. Operational drivers - *what core activities must be done well?*
3. People & organisation drivers - *How do we encourage, motivate and fulfil the needs of our people?*
85
What are examples of **key strategic drivers**?
Differentiate from competitors.
* Industry and markets
* Customers
* Products and services
* Channels
* Competitive advantage
86
True or false: strategic drivers for industry, markets and customers are often interlinked
True.
Customers, markets and industry and closely related.
87
What is the **BCG Product Matrix**?
Identifies how the variety of products contribute to the firm in terms of market share v growth rate.
Dogs, question marks, cash cows and stars.
88
What are possible differentiation methods under Porters Differentiation General Strategy?
* Product quality
* Product reliability
* Product innovation
* Product range
* Service levels
* Product features
* Brand name
* Distribution channels
* Flexibility
89
What are possible low cost methods under Porters Low Cost General Strategy?
* Economies of scale / scope
* Experience / learning curve (lower cost than new entrants)
* Tech advantage
* No-frills product
* Simple product design
* Cost control
* Location advantage (e.g. lower distribution costs)
* Production innovation
* Purchasing cheap assets
* Government subsidy
90
Aside from Porters 2 Generic Strategies (Low Cost v Differentiation), what other Generic Strategy is possible?
Focus Strategy.
Aims to find a small product / segment with a set of significantly different needs, focus on this area only.
Methods
* Narrow product line
* Small customer negment
* Small geographic segment
* Focused functional capability
91
Operational objectives reflect the goals of the organisation.
What views of goals can an organisation have?
1. **Shareholder** view. Organisation exists for shareholders. Financial measures critical.
2. **Stakeholder** view. Organisation serves multiple stakeholders, not just shareholders.
92
What is the** shareholder view** of goals also known as?
Value-based management.
93
What are complex issues involved in the** stakeholder view**?
Measurement issues, such as:
* What measures are appropriate for each stakeholder group?
* How does the organisation balance performance between measures?
* How does the organisation handle conflicts between measures?
94
What do effective performance measures do?
1. Help develop and implement strategy
2. Support decision making
3. Motivate managers & employees
4. Communicate or signal to stakeholders.
95
What are characteristics of effective performance measures?
Validity - *does it hit the target?*
Reliability
Clarity - *easy to understand?*
Low cost - *benefits exceed costs of measurement?*
Timeliness
Accessibility - *can the right people access information?*
Controllability - *is it able to be influenced by the right people?*
Resistance to gaming / manipulation
Relevance
96
What's the difference between **resources** and **capabilities**?
**Resources** are **productive assets** that the organisation owns.
**Capabilities** are what the organisation **can do.**
97
Once an organisation has decided on metrics for operational performance, what next?
Need to determine how to assess organisations performance.
That is ... what level or benchmark do you want to hit?
98
What should be involved in judging any aspect of performance?
Should be done against a benchmark or reference point.
99
What 4 elements of the Balanced Scorecard are there?
1. Financial
2. Customer
3. Internal Process
4. Learning & Growth
100
What is knowledge management?
How organisations capture, share and use knowledge
101
What is the difference between **explicit knowledge** and **tacit knowledge**?
Explicit - formally captured + recorded
Tacit - undocumented knowledge + experience
102
What is the knowledge spiral?
Knowledge conversion between tacit and explicit, and between individual and organisations, causes organisational knowledge to broaden and deepen.
103
Is the SWOT analysis useful as either (a) Strategic driver, (b) Operational Driver or (c) People & Organisational driver?
Commonly used to assess (c) People & Organisational Drivers.
104
How should resources be broken up when reviewing organisational capabilities and people / organisational drivers?
1. Tangible
2. Intangible
3. Human
105
What is **competency modelling** when looking at human resources?
Identifying the set of skills, content knowledge, attitudes and values associated with superior performers within a particular job category, then assessing each employee against that profile.
106
What should be completed as part of assessing organisational capabilities?
1. **Functional analysis** - identify capabilities within each function (e.g. supply chain, engineering, marketing).
2. **Value chain analysis** - identify sequential chain of the main activities a firm undertakes.
Need to look beyond generic capabilities to uncover those that are unique.
107
What is the **4 tests** for a resource or capability to be termed a **strategic capability**? (VRCN) (Hitt et al)
1. Valuable
2. Rare
3. Costly or Difficult to Imitate / Replicate
4. Non-substitutable
108
How does SWOT relate to internal and external analysis?
Strengths - Internal
Weaknesses - Internal
Opportunities - External
Threats - External
A gap analysis can then be completed and look at the development of strategic options.
109
What level is **gap analysis** applied at?
At a business level.
110
What is the aim of strategy formulation and implementation?
Aim for external and internal consistency in strategy - focus on resolving gaps or inconsistencies.
111
What 7 Areas Of Focus should be completed in a gap analysis?
External Environment Gaps
1. Remote Environment
2. Industry Environment
3. Industry Competitors
Internal Environment
1. Key stakeholder gaps
2. Strategic Driver gaps
3. Operational Driver Gaps
4. People and capability gaps
