Strategy

Question 1

Strategy concept

Answer 1

set of objectives and mechanisms for achieving them:

H Mintzberg definition:

1. a plan
2. a pattern
3. a position
4. a perspective

strategy can be:

• a pattern/ plan to investigate goals of an organisation
• goals and policies and action = cohesion
• change in environment

Question 2

strategic decision

Answer 2

those which determine the overall direction of enterprise

Question 3

classical approach

Answer 3

formal strategy contains 3 elements:

1. the most important goals (objectives) to be achieved
2. the most significant policies guiding or limiting action
3. the major action sequences (programmes)

strategy deals with the unpredictable and the unknowable

Question 4

effective strategy development

Answer 4

look at motivational, internal consistency, personal matching, time

should develop clear objectives

• be understandable and achievable
• may change with time
• must be decisive
• must ensure viability
• maintain the initiative
• concentration of skills and power
• flexibility
• coordinated and committed leadership
• surprise
• security of resource

Question 5

identify the business

Answer 5

• character of product line - how firms identify the business
• technology
• markets

Question 6

Ansoff’s component strategy

Answer 6

• develops the concept of growth vectors to show the direction of the firm
• market penetration: increasing market share
• market development: increasing range of applications for a product
• product development: new products to market
• diversification: new products and new missions

Question 7

concepts of synergy

Answer 7

synergy: if it fits it will enhance
- sales synergy: which product use common learning curves
- operating synergy: spreading overheads
- investment synergy
- management synergy: skills in one area used in another

Question 8

strategy advantages

Answer 8

• saves time, money and skill for other tasks
• field is not restricted
• acts on best possible info to hand

Question 9

strategy disadvantages

Answer 9

• lack of guidance and focus
• poor quality
• no appriasal

Question 10

5 Ps of Strategy

Answer 10

• plan
• ploy
• pattern
• position
• perspective
• planned strategy: precise intentions formulated and initiated
• entrepreneurial: intentions exist as thoughts of a single person
• ideological: common decisions
• imposed: external aspects dictate strategy and pattern of action

Question 11

strategy making in 3 modes

Answer 11

1. entrepreneurial mode: single leader, strong bold steps
2. adaptive mode: small disjointed steps
3. planning mode: integrated strategies predominate