Unit 3- Strategy Flashcards
What is a strategy?
A strategy is a plan of action designed to achieve a long-term or overall goal/plan
What are 2 strategy characteristics?
- Rational-Analytic view (precise planning & intentions, a lot of detail & use of tools & techniques)
- Emergent-Learning view (less precise intentions, more laid back & flexible approach, grows by opportunity & creativity)
Who proposed the umbrella approach to strategy?
Mintzberg & Waters (1985)
What is the strategic purpose?
increase profit whilst staying socially & environmentally responsible within their strategic plans
How should firms build their strategies?
Based on internal strengths
What is a resource?
A resource is an input that an organisation has available to use that adds value
What are the 3 types of resources?
tangible, intangible & human resources
What are competencies?
Competencies are the ability to do something successfully or efficiently (threhold & distinctive)
What are dynamic capabilities?
help to meet the needs of changing market environments & customer demands
What are distinctive capabilities?
the potential to take value-creating actions that are not available to competitors
What is the difference between resources & capabilities?
Resources are what an organisation has and capabilities are what it can do with them
What are threshold competencies?
Threshold competencies are the minimum requirement to operate within the industry
What are distinctive competencies?
Distinctive competencies offer the potential to act in unique ways to superior performance levels compared to what competitors can do
What is the VIRO framework?
The VRIO Framework is used to evaluate an organization’s resources and capabilities. The VRIO framework looks at value, rarity, imitability, and organization.
What are the 3 strategic choices?
business strategy, strategic directions & strategy methods
