Strategic Audit Flashcards
What is the definition of Strategy?
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.
What is Strategy about?
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.
What is Strategic Leadership?
Managing a company’s strategy-making process.
What is Strategy Formulation?
Determining and selecting strategies.
What is Strategy Implementation?
Putting strategies into action.
What is the role in Top Managers in Strategy?
To formulate and control strategy.
What is the role in Middle & Lower Management in Strategy?
Meet the strategic objectives and deal with the constraints.
What is the role in All Managers in Strategy?
To contribute to the formulation of strategy and to communicate strategy.
What is the Corporate Level Strategy concerned with?
Concerned with the overall scope and direction.
What is the Business Level Strategy concerned with?
Concerned with the way a business seeks to compete in.
What is the Operational Level Strategy concerned with?
Concerned with the short-term and to deliver strategy in terms if managing resources, processes and people.
What is a SWOT analysis?
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.
What is the PESTEL Framework?
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.
What is Porter’s 5 Forces Model?
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.
What is one basis of a good strategy?
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.