SG 6 Strategic Process - Big Picture

Question 1

What is the strategic process?

Answer 1

Continuous assessment of company’s vision, mission and values, formulating and implementing strategy and evaluating companies performance against these

Question 2

Define vision statement

Answer 2

A description of a future state of the company - where it is going.

Question 3

Define mission statement

Answer 3

Should answer question - why does this company exist? It is an internal and external message that shows how to move the company from current state to it’s future state (vision statement)

Question 4

Define values statement

Answer 4

Declaration of core beliefs, principles and philosophies of the organization

Question 5

Three levels of strategy

Answer 5

Corporate - what business are we in?
Business - what is our CVP?
Functional - how can we support the business and corporate strategy?

Question 6

What two things take place during strategy development?

Answer 6

Identifying ideal customers and developing the customer value proposition

Question 7

What are the three generic strategies to outperform competition?

Answer 7

Operational excellence - low costs/ efficient ops
Customer intimacy - customer centric
Product leadership - excel in product development

Question 8

Define KSF and CSF

Answer 8

Key/Critical success factor. Something that is critical for organisation to succeed in meeting it’s mission statement and living it’s values.

Question 9

What performance measures can be put in place to assess performance?

Answer 9

• benchmarking
• ROI
• residual income
• BSC