Random Module 5 Flashcards
What does strategy development involve?
Aligning vision, mission, values, goals, strategic themes, initiatives and related actions.
What are the 5 stages of the strategy development process?
- Identify options
- Evaluation options, risk assessment
- Group options into strategic themes
- Develop key metrics and key performance indicators
- Develop strategic initiatives / implementing activities.
What are strategic drivers?
Choices we should make to create/maintain a unique position in the industry.
What 5 types of strategic drivers are there?
- New markets
- New products
- Target Customers + value propositions
- Effective channels
- All leads to creating a competitive advantage
What are operational levers?
What are the core activities that an organisation must do well to deliver the strategy?
What are organisation / people levers?
Capabilities and expertise, motivating people to deliver high quality outcomes
What are products and service levers?
How do we build products that meet customers needs to deliver the strategy?
What are 5 key product and service key success factors?
- Understanding user needs
- Ability to successfully market and launch
- Efficiency of development
- Outside tech and external communications
- Seniority and authority of responsible managers.
True or false:
Strategic levers are items you can pull on to generate strategy.
False.
Strategic levers are outcomes to achieve that will allow strategic drivers to work.
What is the next step after strategic options have been identified?
Evaluate the options relative to the current industry and determine their “strategic fit” with the organisation.
What are 3 options for evaluating strategic options?
- Value / effort assessment tool
- Weighted criteria evaluation tool
- Evaluation using business analytics.
What is the value/effort assessment tool?
Evaluates potential impacts of the strategic options, by value generated and level of effort needed.
Low-hanging fruit (high value, low effort)
Blood, sweat & tears (high value, high effort)
Dead Ducks (low value, high effort)
Delegate or Dump (low value, low effort).
How are business analytics useful in evaluating strategic options?
Discovers and communicates patterns in data from internal / external sources.
What is a data lake?
Stores data in a raw unstructured form. All sources are kept intact.
System then transforms data for use in analytics.
What is risk?
Threat
event / choice / action
will affect
organisations ability to achieve goals.
True or false:
Risk assessment is a constant and iterative process.
True
What are the steps in the risk management framework?
Identify risk issues
possible causes
possible consequences
current likelihood
Determine Risk Rating
When identifying risk issues, how should these be classified?
- Operational
- Political
- Strategic
- Legal
- Technological
- Reputation.
What is Rumelt’s criteria?
Strategic framework to compare and prioritise strategic options.
External consistency
Internal consistency
Feasibility
Competitive Advantage
What is external consistency?
Whether strategic option is consistent with external environment.
What is internal consistency?
Whether the functional strategies and capabilities are compatible with desired goals.
