Unit 1 - What is strategy Flashcards
What is a strategic issue?
Strategic issues can be characterised as developments inside or outside an organisation that are likely to have an important impact on its ability to meet or determine its purposes and objectives.
Examples of significant developments of this kind might include:
- the emergence of a new industry standard
- the entry of a low cost competitor in your industry
- a change in government or government policy.
Having identified a development significant enough to represent a strategic issue for their organisation, a strategist would then ask a question such as:
- What should Organisation X do to respond to the emergence of a new industry standard?
- How can Organization Y reconfigure to compete successfully with a new low cost market entrant?
- Which options are available to Organisation Z to enable it to respond to a change in government or government policy?
Strategic issues provoke strategic questions which require strategic decisions to be taken.
What do all of the decisions that a manager faced with these questions have in common? According to Grant (2010, p. 14):
- they are all important
- they all involve significant resource commitments
- they are not easily reversible.
What is corporate strategy?
What is business strategy?
What is functional strategy?
Describe the BB835 strategy framework?
