Strategic DM

Question 1

Strategic MGMT: Definition + Importance

Answer 1

The set of decisions and actions used to formulate and implement strategies to provide a competitive advantage. Essential for achieving long-term success and differentiation in the market

Question 2

Analytical side of strategy formulation (list)

Answer 2

SWOT Analysis, Business level Strategy

Question 3

SWOT Analysis (define/ elements)

Answer 3

Identifies internal strengths and weaknesses, and external opportunities and threats to inform strategic decisions. External (PEST)(Porters 5 forces)

Question 4

Business level strategy (define + define elements)

Answer 4

Porter’s Generic “trade off” strategies to stake a position in the market and outperform competitors
– Differentiation (compete on quality)
– Cost leadership (compete on price)
– Focus (compete via specialisation)

Question 5

Practical side of strategy formulation (list)

Answer 5

Herbert Simon’s Bounded Rationality, Strategy making meetings, political model of decision making

Question 6

Bounded Rationality (Herbert Simon) (define)

Answer 6

Decision-makers are limited by the information they have, their cognitive limitations, and time constraints. Emphasizes making satisfactory rather than optimal decisions.

Question 7

Strategy-Making Meetings (define)

Answer 7

Recognises the political nature of decision-making, where different interests and goals must be negotiated and balanced.

Question 8

Political Model of Decision-Making (define)

Answer 8

Decisions are often the result of bargaining and coalition-building among stakeholders with differing interests

Question 9

Key concepts and Frameworks (list) planning as a multi level process

Answer 9

Mission and Vision Statements, Strategic Goals and Plans,Implementation

Question 10

Mission and value statements (define)

Answer 10

Define the organization’s purpose and long-term goals.

Question 11

Strategic Goals and Plans (define)

Answer 11

Translate the mission and vision into specific, actionable objectives.

Question 12

Implementation (define)

Answer 12

Involves using managerial and organizational tools to direct resources toward achieving strategic outcomes.

Question 13

Case Study (example)

Answer 13

Discussion on how companies like Apple maintain competitive advantage through strategic planning and innovation.
Real-world examples of strategic successes and failures, emphasizing the importance of adaptability and continuous evaluation.

Question 14

Theoretical Model (list)

Answer 14

Neoclassical Model, Carnegie School

Question 15

Neoclassical model (define)

Answer 15

Assumes rational decision-making with the goal of maximizing outcomes.

Question 16

Carnegie School (define)

Answer 16

More realistic, acknowledging bounded rationality, heuristics, and the political nature of decision-making.

Question 17

Disadvantages of Strategic DM (list)

Answer 17

Cognitive biases and groupthink can distort decision-making processes.
Importance of de-biasing techniques, such as assigning a devil’s advocate and encouraging diverse perspectives.