Strategic plans and risk management Flashcards
5 Ps of strategy
Plan
Ploy
Pattern
Position
Perspective
What is defined
establishment of objectives and the formulation, evaluation and selection of policies strategies tactics and action required to achieve them
planning
what is defined
statement of long term goals with definitions of strategies and polices which will ensure achievement of these goals
Strategic plan
what is the plan:
plan setting out the markets a business intends to serve, how it will serve each market and what finance is required
business plan
What is the plan:
A plan setting out how overall objectives are to be achieved, by specifying what is expected from specific functions, stores and departemnts
operational plan
What of the 5ps is
offering unusually high quality products
position
What of the 5ps is
advertising campaign
ploy
what is meant by using strategy as a pattern
stream of actions arising from the culture of the management team
What is a document containing targets and instructions for people to follow
plan
What is a manoeuvre to disadvantage a competitor
A ploy
What is the businesses unique way of looking at the world
perspective
Setting up strategic business units is part of
business strategy
What is described
customers or potential cusotomers who have needs which are satisfied by product/service
Market
what is described
comprises of businesses which use tech/competence to satisfy customer needs therefore to compete with each-other
industry
Porters 5 forces
- potential Entrants
- Customers
- Substitutes
- Suppliers
- Industry competitors
what type of competitor is described
similar firm with similar products (coke pepsi_
Brand competitors
what type of competitor is described
Similar products but other differences e.g. geographic (estate agents)
Industry competitors
what type of competitor is described
Competing for same disposable income
generic competitors
what type of competitor is described
different products satisfying same need
form competitors
what response profile is described
No response to competitor moves
laid back
what response profile is described
aggressive response to opposing moves
tiger
what response profile is described
reacts to some but not all moves
selective
what response profile is described
unpredictable responses
the stochastic
What is described
part of the planning process which examines current state of the entity
position model
9M model
Machinery
make up
management
MI
markets
materials
men and women
methods
money
What is a limiting/key factor
anything which limits the activity of an entity
what are activities
means by which a business creates value in its products
What are value drivers
elements of a product or service and activities that increase the amount of value consumers place on it
what are cost drivers
any activity that affects the cost of a product or service
What is described
excess the customer is prepared to pay over the cost to the business of obtaining resource inputs and providing value activities
margin
What is firm infrastructure
how a firm is run - structure and culture of the organisation
what is described
optimising activities of business working together to produce goods and services
supply chain management
what is described
how a product demonstrates different characteristics of profit and investment over time. analysing it enables a business to examine its portfolio of goods and services as a whole
product life cycle
different aspects of prodcuts
product class
product form
brand
What phase is described
large R&D
low product sales
loss making
Introduction
Market share is
one entity’s sales of product or service as a percentage of total sales in a specified market
Market share as a ratio BCG
Our market share / market share of largest competitor
Market share ratio >1
we are the market leader
If the market share and market growth are high, the product is a
star - build
If market share is low and market growth is high the product is a
question mark
If market growth is low and the market share is high, the product is a
cash cow
If market growth is low and market share is low, the products are
dogs
Cash cows should be
held or harvested (use cash to invest elsewhere)
question marks should be
built into starts or harvested
Dog decision
divest or hold
If hold a question mark what strategy to adopt
build or harvest strategy
what is a positioning based approach
fit ourselves into market - SWOT is summary of examination of internal and external
What is a resource based approach
focus on strengths and competences and build around that - SWOT is first stage to understand core competencies
Profit gap
the difference between target profit and profit forecast
What is described taking offensive or defensive action to create a defendable position in an industry to cope successfully with competitive forces and thereby give a superior return on investment for the business
competitive strategies
What strategy is described
predicting at the lowest cost in the industry as a whole (not necessarily lowest price offered)
cost leadership
What strategy is described
providing a product or service which the industry as a whole believes to be unique
differentiation
what strategy is described
restriction of activities to only a part of the market through providing goods or services at lower cost to that segment (cost focus)
Providing differentiated product or services to that segment (differentiation focus)
focus or niche
three criteria for choosing corporate strategy (SAF)
suitability
acceptability
feasibility
What is risk
the possible variation in an outcome from what is expected to happen
What is uncertainty
the inability to predict the outcome from an activity due to lack of infomraiton
possibility something will go wrong
Pure risk
possibility something could go better than expected
Speculative risk -
COSO risk definition
the possibility an event will occur and adversely affect achievement of objectives
COSO Opportunity definition
possibility event will occur and positively affect achievement of objectives
What is the risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events including legal risks
operational risks
What are the four key risk concepts
exposure
volatility
impact
probability
What is gross risk = to
probability * impact
what is defined
risk of financial loss, disruption or damage to reputation of an organisation from some sort of failure of its IT systems
cyber risks
What is defined
deliberate action through internet against organisation with intention of causing loss, damage or disruption to activities
cyber attack
What is defined
protection of systems, networks and data in cyber space, the procedures used by a business to protect information systems from damage disruption or other loss
cyber security
What is risk management
identification analysis and economic control of risks which threaten the assets or earning capacity of a business
Risk response - TARA
Transfer
Avoid
Reduce
Accept
Controls in place in response to risk
physical
financial
system
management
What is defined
unexpected event that threatens wellbeing of a business, significant disruption to business and normal operations which impact customers , employees investors or other stakeholders
Crisis
What is defined
Identifying a crisis, planning a response to the crisis and confronting and resolving the crisi
crisis management
Three main types of crisis by effect
financial
public relations
strategic
what is defined
business’s operations, or significant part of them break down for some reason leading to potential losses of equipment, data or funds
Disaster
What is defined
wider stakeholders not yet affected
disaster
What is defined
wider stakeholders affected
crisis
What is defined
business’s ability to manage and survive against planned or unplanned shocks and disruptions to operations
business resilience
What is defined
an organisations ability to ensure data and information are reliable, available and have integrity as well as being adequately protected from unauthorised access
cyber resilience
What is defined
Minimising potential disruption caused by outsourcing or working with partners or by adopting JIT approach to inventory management
supply chain resilience
what kind of risk is regulatory risk
event risk
What kind of risk is failure of a participant in a supply chain to honour contract
systematic risk - subsection of event risk
What is defined
how the organisation sees itself at some future time
vision
What is defined
what is the basic function of the organisation
mission
What part of the management process is described
generating effort and commitment towards meeting objectives including the motivation of staff
Lead
What is defined
the number of employees directly responsible to a manager
Span of control
What is the stage of group development described
seeking to define the purpose of the group
Forming
What culture is described
business looks inwards aiming to make internal environment stable and controlled with stable goals and defined procedures for all activities
internal process culture
