Strategy Flashcards
strategy definiton
Creating as much value as possible for customers. Not in terms of price, but how we underpin their lives. Good corporate industrial strategies resolve problems.
what do strategies do?
Defines overall goals, determines what needs to be done, leader formulated, includes thoughts/concepts/ideas, involves planning (analysis).
How did Mintzberg view strategy?
As emergent, constantly scanning and modifying thinking to capture the zeitgeist, customer share, competition, and resources.
What is a key paradigm in Mintzberg’s strategic thinking?
The role of leadership in strategic formulation
Acorrding to Mintzberg, how does organisational culture influence strategy?
Organisational culture drives strategic thinking and implementation.
What does culture= in strategic thinking?
Interfunctionality—how different parts of an organisation interact.
How does that macro environement impact strategy?
The constant change of the external environment means that strategy needs to be proactive. For example, Donladn Trump reelection has altered busienss and trade for Western Europe.
According to Barney, what is required to be competitive?
You need something internal and external that is of value.
Why is sustaining value difficult in saturated markets?
Because competition is high, and differentiation is challenging.
How do value propositions work economically in companies?
They often operate within horizontal frameworks where many companies offer similar products at similar prices, leading to price wars.
Why are price wars a poor strategy?
They erode profitability and do not create sustainable competitive advantage.
What happens to a company that offers no value?
It experiences prolonged organisational decline, leading to eventual death.
What does the “R” stand for in Barney’s VRIO model?
Rare – Competitive resources must be scarce.
What does the “I” stand for in Barney’s VRIO model?
Imitation – If a brand can be easily imitated, it won’t gain market share.
How do companies transition from a horizontal to a vertical market?
Through differentiation and finding a unique identity.
What are the four elements of Barneys VRIO framework?
Valuable, Rare, Inimitable, Organised
1991
What is a deliberate strategy?
A focused, defined, and successful strategy arising from conscious, thoughtful, and organised action by leadership.
What key data metrics inform a deliberate strategy?
Market growth, segment size, customer needs, competitor strengths/weaknesses, and technological trajectories.
What is an emergent strategy?
An opportunistic, entrepreneurial strategy arising spontaneously within an organisation.
What factors drive an emergent strategy?
Exploration of other markets, macro/messo environment, internal ideas, gaps, and competitive landscape.
