Strategy Formulation

Question 1

Recognizes that organizations are composed of interacting and sometimes interdependent parts that together create a dynamic internal environment. Each part is differentiated by the role it plays in the system and its own particular challenges, values, and processes - referred to as the differentiation of units.

Answer 1

Systems thinking

Question 2

All the factors that can affect the outcome. They include:

• Internal and external constraints that will make a chosen strategy more difficult to achieve.
• Organizational resources or external conditions that will enhance the chances of achieving strategic goals.

Answer 2

Inputs

Question 3

These include the desired strategic effect.

Answer 3

Outputs

Question 4

A process of systematically surveying and gathering data, from both internal and external sources, that can be analyzed to identify opportunities and threats and to strengthen strategic plans and goals.

Answer 4

Environmental scanning

Question 5

The environmental scanning process is systematized by searching for environmental forces organized under these specific categories - political, economic, social, technological, legal, and environmental

Answer 5

PESTLE analysis

Question 6

Simple and effective process for assessing an organization’s strategic capabilities in comparison to threats and opportunities identified during environmental scanning. Strengths, weaknesses, opportunities and threats

Answer 6

SWOT analysis

Question 7

Helps an organization compare the impact of changes in the environment on the organization’s outputs.

Answer 7

Scenario analysis

Question 8

Specifies what activities the organization intends to pursue and what course management has charted for the future - a concise statement of the organization’s strategy.

Answer 8

Mission statement

Question 9

A vivid, guiding image of the organization’s desired future - the future it hopes to attain through its strategy.

Answer 9

Vision statement

Question 10

(to be distinguished from the economic value an enterprise produces for its stakeholders) are beliefs that are important to an organization and often dictate employee behavior

Answer 10

organizational values

Question 11

Actions, processes, or results that are needed to deliver a desired value.

Answer 11

Value drivers

Question 12

Used to identify their key performance indicators (KPIs) and to make sure that the objectives used to measure performance are strategically aligned to the various sources of value to the organization and are balanced.

Answer 12

balanced scorecard

Question 13

KPIs may vary, but for HR they could include budgeting for recruiting services or controlling overtime expenses.

Answer 13

Finance (KPI)

Question 14

This perspective captures the ability of the organization to provide quality goods and services and satisfy its customers.

Answer 14

Customers (KPI)

Question 15

This perspective focuses on the internal business results that lead to financial success and satisfied customers.

Answer 15

Internal business processes (KPI)

Question 16

This perspective looks at actions that will prepare the future organization for success.

Answer 16

Learning and growth (KPI)

Question 17

Predictive in that action in this area can change future performance and help achieve success.

Answer 17

Leading indicator

Question 18

Effects that have already occurred and cannot be changed.

Answer 18

Lagging indicator

Question 19

SMARTER acronym

Answer 19

Specific
Measurable
Attainable
Relevant
Timebound
Evaluated
Revised

Question 20

Compares performance levels and/or processes of one entity with those of another to identify performance gaps and set goals aimed at improving performance.

Answer 20

Benchmarking