Week 1 Flashcards
What makes a successful strategy ?
- Consistent and long-term goals
- Understanding the competitive environment
- Objective appraisal of resources
- Effective implementation
How does strategy help a business be successful?
1- Helps a business to be consistent and achieve long term goals.
2- Allows for a profound understanding of the competitive environment.
3- Allow for more effective implementation
Why do organisations compete?
For Survival
For Profitability
For Growth
What are the 3 fundamental questions of strategy ?
- Where should organisations compete?
- How should they compete to ‘win’?
- How will they continue to ‘win’ over the long run?
What are the 7 steps of strategy analysis?
1- Identify the current strategy
2- Appraise performance
3- Diagnose performance
4- Industry analysis
5- Analysis of resources and capabilities
6- Formulate strategy
7- Implement strategy
What are ways of identifying sources of competitive advantage?
1-Does the firm gain a competitive advantage from its industry position?
- Does the firm gain a competitive advantage from its ability to generate its own advantages?
- Does a firm gain a competitive advantage from just one source?
What are some external sources of competitive advantage?
1- The ability to adapt products/services to changing consumer demand
2- Adapting to technological changes
What are some internal sources of competitive advantage?
1- Strategic innovation
2- Reconfiguring the value chain
What is value creation and value configuration?
Value creation- offers specific customer needs and wants.
Value configuration- The arrangement of resources and activities that produce this value
What is value capture?
Explains how revenue streams and cost structures allow an organisation and stakeholders to gain share of value created
