Topic 1

Question 1

What are the (5) Elements of a Strategy (SAVED)?

Answer 1

1. • Staging: what will be our speed and sequence of moves?
2. • Arenas: where will we be active?
3. • Vehicles: how will we get there
4. • Economic logic: how will we obtain our returns??
5. • Differentiators: how will we win in the marketplace?

Question 2

What are the (6) Key Evaluation Criteria for a Strategy?

Answer 2

1. - Does your strategy fit with what’s going on in the environment?

Is there healthy profit potential where you’re headed? Does your strategy align with the key success factors of your chosen environment?

2. Does your strategy exploit your key resources?

With your particular mix of resources, does this strategy give you a good head start on competitors? Can you pursue this strategy more economically than competitors?

3. Will your envisioned differentiators be sustainable?

Will competitors have difficulty matching you? If not, does your strategy explicitly include a ceaseless regimen of innovation and opportunity creation?

4. Are the elements of your strategy internally consistent?

Have you made choices of arenas, vehicles, differentiators, and staging, and economic logic? Do they all fit and mutually reinforce each other?

5. Do you have enough resources to pursue this strategy?

Do you have the money, managerial time and talent, and other capabilities to do all you envision? Are you sure you’re not spreading your resources too thinly, only to be left with a collection of feeble positions?

6. Is your strategy implementable?

Will your key constituencies allow you to pursue this strategy? Can your organization make it through the transition? Are you and your management team able and willing to lead the required changes?

Question 3

What do we mean by Strategic Management?

Answer 3

Strategic Management is defined as the achievement of sustainable competitive advantage