Strategy and Purpose of Business Flashcards
Outside-in Strategy
look for external opportunities and adapt internal processes to meet them
(positioning-based view)
Inside-out Strategy
develop/acquire resources and competences, create new markets and exploit them
(resource-based view)
Advantages of Outside-in approach
~ marketing: identifying customer needs and adapting products
~ competitive positioning: gaining superior position against rivals
Disadvantages of Outside-in approach
~ products become obsolete
~ technical changes eliminate cost advantages
~ change of skills and products will be disruptive
Strategic planning approach
a top-down rational approach to strategy development
Strategic management
a bottom-up emergent approach to the development of strategy
Ohmae’s Strategic Thinking (3C’s)
- Corporate strats - build competitive strength by focusing on superior competences
- Customer strats - tailing requirements to each market segment
- Competitor strats - exploit weakness of rivals
Intended strategies
conscious plans imposed by mgt
Emergent strategies
ideas outside of formal planning that are incorporated into the plan
Incrementalism
breaks the plan into small steps = more flexible
Elements of a mission
~ purpose
~ strategy
~ policies and standards of behaviour
~ values
SMART objectives
Specific Measurable Achievable Relevant Time-bound
Critical success factors
key goals vital to the success of an organisation
Stakeholders categories
Internal: human resources
Connected: sources of finance
External: interested parties
Stakeholder
Power: low
Interest: low
Minimal effort
