Strategy Preparation

Question 1

Strategic Implementation

Answer 1

An organisation should have carried out a meaningful strategic analysis
Preparation of corporate strategy:
1. Strategic Analysis
2. Strategic Choice
3. Strategic Implementation

Question 2

Skeleton

Answer 2

1. Executive Summary
   Main points of strategic review
   Recommendations
2. Mission
   Nature of Business
   Mission and Goals

3. Strategic Analysis
Analysis of External Environment using PEST factors
Competitive Environment
Analysis of Capability
SWOT

4. Strategic Choice
   Outline of alternative strategies, directions and methods
   Evaluation o the alternative strategies under review
   Proposed strategy, direction and method
5. Strategic Implementation
   Planning
   Monitoring

Question 3

Resource Planning

Answer 3

1. Financial resources:
   Sources of finance
   Logistics of finance

2. Physical resources:
Specs
Fitness for purpose
Cost
Terms of contracts

3. HR
   Manpower
   Training
   Recruitment
4. Intangibles

Question 4

Coordinating Plan

Answer 4

To deal with tech issues (eg software) or resource fit (eg new planes in existing fleets).

-Project logistics (planning)
Each stage of the project is assigned a deadline
A path of the order of tasks
Priorities set out

-Project objectives (operations)
Management by Objectives (MBO) - strategy into outcomes/objectives
Clarify strategy into measurable performance targets
Performance review
Monitoring
Setting out objectives

Question 5

Organisational structure

Answer 5

Framework of an organisation
Height = number of layers
Width = the extent a decision is centralised or decentralised

1. Simple structure
2. Functional - grouped according to functional areas
3. Multi division - groups activities according to products, services or geography
4. Matrix - Encourages collaboration between different areas of management
5. Experimental

Informal structures or networks find ways of avoiding formal structure

Question 6

Structural elements common to all organisational structures

Answer 6

• Operating core - production of the goods
• Strategic apex - management
• Middle line - middle management when the company grows
• Techno-structure - analysts, monitors
• Support - internal services
• Ideology - Values, beliefs and aims

Coordination of the elements:

1. Mutual adjustment: cooperate to reach agreed ends
2. Direct supervision: coordination through instruction from the top
3. Standardisation: everything standardised to coordinate the firm’s operations

Question 7

Tall vs Flat structures

Answer 7

Tall = Topdown
Flat = levels are cut, reduction in costs, shorter comms lines = more responsive

Question 8

Bureaucratic vs Flexible structures

Answer 8

Bureaucratic = Rigid, clear supervision, procedures/products/services standardised

Flexible = Initiative is used, not rigid, open to negotiation, overlap in duties, may be more resilient to turbulent times

Question 9

Centralisation vs Decentralisation

Answer 9

Centralisation = Top down, strong corporate image imposed

Decentralisation = bottom up, flexibility