Strategic Audit Flashcards

1
Q

What is the definition of Strategy?

A

The direction and scope of an organisation over the long term which matches its resources ti its changing environment so as to meet stakeholder expectations.

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2
Q

What is Strategy about?

A

Its about gaining and maintaining competitive advantage by determining the long-term goals and objectives and then adopting a course of action necessary to carry out these goals.

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3
Q

What is Strategic Leadership?

A

Managing a company’s strategy-making process.

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4
Q

What is Strategy Formulation?

A

Determining and selecting strategies.

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5
Q

What is Strategy Implementation?

A

Putting strategies into action.

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6
Q

What is the role in Top Managers in Strategy?

A

To formulate and control strategy.

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7
Q

What is the role in Middle & Lower Management in Strategy?

A

Meet the strategic objectives and deal with the constraints.

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8
Q

What is the role in All Managers in Strategy?

A

To contribute to the formulation of strategy and to communicate strategy.

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9
Q

What is the Corporate Level Strategy concerned with?

A

Concerned with the overall scope and direction.

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10
Q

What is the Business Level Strategy concerned with?

A

Concerned with the way a business seeks to compete in.

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11
Q

What is the Operational Level Strategy concerned with?

A

Concerned with the short-term and to deliver strategy in terms if managing resources, processes and people.

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12
Q

What is a SWOT analysis?

A

SWOT is a structured planning method used to evaluate a business’ strengths, weaknesses, opportunities and threats. Where SW are internal and OT are external to the business. It is important to note that a PEST(EL) feeds into the external OT.

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13
Q

What is the PESTEL Framework?

A

Helps identify the key drivers of change and the strategic forces in a business’ external environment. The areas are Political, Economical, Social, Technology, Environment and Legal.

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14
Q

What is Porter’s 5 Forces Model?

A

It is used to evaluate a firm’s competitive posture within the business’ environment. Competitive rivalry is determined by the Risk of Entry, Power of Suppliers, Power of Buyers and Threat of Substitutes.

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15
Q

What is one basis of a good strategy?

A

There is no single approach to the methodology of Strategic Management but it must involve both analytical and creative thinking where analysis is used to stimulate the creative process.

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16
Q

What are the three key areas of the Strategic Model?

A

The three areas are all interlinked: Position (capability, environment, culture, purpose). Choices (corporate, business, international, innovation, acquisitions and alliances). Action (evaluating, processes, practice, changing, organising).

17
Q

What is the Strategic Audit Process?

A

1) Evaluate current performance (financial, trends, mission)
2) Evaluation of strategy posture (mission, vision, values, goals and objectives)
3) Assess firm’s environment to identify strategic factors (SWOT)
4) Analysis of strategic factors (review and revise)
5) Generate strategic options (evaluate and select)
6) Implement
7) Evaluation and control

18
Q

What must a Strategy do?

A

It must exploit strengths and opportunities, whilst counter threats and weaknesses in order to gain and maintain a competitive advantage.

19
Q

What is an industry?

A

An industry is a group of firms producing products and services that are essentially the same.

20
Q

What is a market?

A

A market is a group of customers for specific products and services that are essentially the same.

21
Q

What is a sector?

A

A sector is a broad industry group or group of related markets.