Strategy formulation and implementation Flashcards
1
Q
What is strategic management
A
creating plans and actions that lead to superior competitive standing
2
Q
What should you consider when making a strategy
A
- strengths and weaknesses
- customers
- products that should be offered
- future trends
- changing the rules
3
Q
3 levels of strategy
A
- corporate-level (what’s the business)
- business-level (how to compete in that business)
- functional-level (how to support the business-level strategy)
4
Q
Aspects of strategy formulation
A
- assessing internal/external problems
- goals
- planning
- decision making
5
Q
Aspects of strategy execution
A
- directing resources
- change structure
- using managerial/organisational tools
- results
6
Q
What’s the strategic management process
A
SWOT
7
Q
What does a BCG matrix show
A
organises businesses by growth and market share
8
Q
Porter’s 5 forces
A
- new entrants (easy to do?)
- buyer bargaining power (driving down prices)
- supplier bargaining power (more choice)
- substitute products (alternatives)
- competitor rivalry
9
Q
Porter’s 3 competitive strategies
A
- differentiation (fast moving)
- cost leadership (lowest costs)
- focus (customer focus to encourage loyalty)
10
Q
Examples of strategies
A
- increased portfolio
- diversification to new lines of business
- mergers and acquisitions
- increasing capacity
- internal innovation
- strategic partnerships
11
Q
Types of global corporate strategies
A
- globalisation (treated as 1 market)
- transnational (adapts products for each country)
- domestic export (domestically produced products exported)
- multidomestic (products produced locally by each country)
