Topic 2 - Introduction to Strategy Flashcards
What does the below definition describe as described by the text book?
“Those decisions that have medium to long term impact on activities of the organisation, including the analysis leading to the resourcing and implementation of those decisions, to create value for key stakeholders and to outperform competitors.”
Strategy
- Strategic planning is about creating an organizational direction such as its vision, mission, and priorities
- Strategic management is about putting that plan into practice to achieve competitive advantage
What are the 10 important characteristics of Wicked problems as described by Rittel and Webber?
1) They do not have a definitive formulation.
2) They do not have a “stopping rule.” In other words, these problems lack an inherent logic that signals when they are solved.
3) Their solutions are not true or false, only good or bad.
4) There is no way to test the solution to a wicked problem.
5) They cannot be studied through trial and error. Their solutions are irreversible so, as Rittel and Webber put it, “every trial counts.”
6) There is no end to the number of solutions or approaches to a wicked problem.
7) All wicked problems are essentially unique.
8) Wicked problems can always be described as the symptom of other problems.
9) The way a wicked problem is described determines its possible solutions.
10) Planners, that is those who present solutions to these problems, have no right to be wrong. Unlike mathematicians, “planners are liable for the consequences of the solutions they generate; the effects can matter a great deal to the people who are touched by those actions.”
Outperforming competitors over the long term indicates a Suxxxxxxxle Coxxxxxxxxe Adxxxxxge
Sustainable Competitive Advantage
What do the three levels of strategy represent?
- Business Strategy
- Corporate Strategy
- Functional Strategy
Business Strategy
- Attempts to secure competitive advantage for an existing product in a market
Corporate Strategy
- Diversification into new products or markets
Functional Strategy
- e.g. IS, HRM, Marketing etc. that facilitate the BS + CS
What are the 5 ‘Key Elements of Strategy’?
(A V EL D S)
What is the difference between a Stakeholder and a Key Stakeholder?
Stakeholders are those individuals or groups that affect the organisation or are affected by the organisation. Key stakeholders are those individuals or groups that can influence the strategy of the organisation.
The central idea of the Rxxxxxxxx Bxxxxx Vxxx is that instead of looking outside to gain an edge over competition and threats, organisation should instead look within at the resources and capabilities at its disposal
Resources Based View
Q
What are the 5Qs of a winning strategy?
- What amount of growth and level of profitability does the organisation seek?
- What products and services does it plan to produce?
- What customer and geographic markets does it plan to service?
- What generic strategy does it plan to follow to position itself uniquely against competitors?
- What position in the industry does it plan to hold in the future?
What is the place of the 5Qs in a world focused on SDGs?
- The importance of economic growth (Q1) may become less important strategically.
- The types of products and services produced (Q2) are likely to change, as are the supplies used to produce them.
- The types of The types of customers and markets served (Q3) will also be affected.
- The basis of competitive advantage (Q4) is already changing as organisations rush to be seen as socially responsible and environmentally friendly.
- Desired position in the industry (Q5) is likely to downgrade the importance of shareholder value and to increase the importance of being an environmental or social leader.
