Strategy and Implement Flashcards
Define an ‘objective’.
Objectives set out the medium-term targets for the business.
Define a ‘strategy’.
A strategy is the detailed step-by-step plans on what the business is going to do to meet its objectives.
What are the four types of business strategy?
- Corporate Strategy
- Strategic Direction
- Divisional Strategy
- Functional Strategy
Describe ‘corporate strategy’.
The big picture plans that affect the whole organisation.
Give an example of ‘corporate strategy’.
Apple: New product developments across the whole product portfolio (phones, Macs, iPads, Apple Watches, etc.) by launching at least one new product per year for each product with a mass TV advertising campaign.
Describe ‘strategic direction’.
A course of action that leads to the achievement of the objectives of an organisation, e.g. entering the Chinese market.
Give an example of ‘strategic direction’.
Apple: In order to gain more market share in China, focus customers’ views within its products and promote its high-quality, reasonable prices on all Chinese TV channels.
Describe ‘divisional strategy’.
The plans for a specific part of the business organisation, e.g. the Cardiff branch/one product in the business’s portfolio.
Give an example of ‘divisional strategy’.
Apple: To spend more R&D on micro technology to enhance its Apple Watch portfolio and apps. To encourage more loyal customers to buy the Apple Watch.
Describe ‘functional strategy’.
The plans that each department (marketing, finance, operations, HR) sets itself to achieve in order to meet the departmental and corporate objectives.
Give an example of ‘functional strategy’.
Apple: To recruit and select 1,000 new highly skilled employees to enhance its creativeness in order to develop more innovative ideas.
What does ‘strategy’ refer to?
The broad direction towards achieving the goals (objectives).
What do ‘tactics’ refer to?
The short-term specific actions taken to deal with situations now to support the strategy.
Give an example of this.
- Objective: Increase profits by 10% within three years.
- Strategy: Develop a newer model in order to attract our existing customers to upgrade.
- Tactic: Ensure that the new model is only to be sold in specialist stores for the first six months to promote a unique, high-prestige brand.
Define a ‘corporate plan’.
A document
