Week 3 - Business strategy and value creation

Question 1

• What is strategic management?

Answer 1

The decisions and actions that determine

the long- term performance of an organisation.

Question 2

• Benefits of strategic management.

Answer 2

Id’s fundamental reasons firms succeed/ fail. Cope with changing situations and uncertain events.. Co-ordinates the organisational, focuses them on the organisations goals. Guides everyday decisions.

Question 3

The strategic management process.

Answer 3

1 – missions, goals & strategies 2 - SWOT analysis 4 – formulating strategies re corporate/business/functional areas 5 - Implementing strategies 6 - Evaluate results.

Question 4

• What is the purpose of a SWOT analysis?

Answer 4

Forms a basis for appropriate org strategies to (1) exploit strengths and external opportunities (2) protect from external threats, (3) correct critical weaknesses.

Question 5

4 components of a SWOt ANALYSIS

Answer 5

(1) Strengths (internal analysis) – Any activities the organisation does well, or any unique resources that it has. (2) Weaknesses (Internal analysis) – activities the organisation does not do well or resources it needs but does not possess. (3) Opportunities (External analysis) - positive trends in the environment (4) Threats (External analysis) - negative trends in the environment.

Question 6

3 levels of organisational strategy

Answer 6

Corporate - growth, stability, renewal Business-level - develop CA via Porters general strategies. Functional - support the business-level strategy.

Question 7

• What are the 5Qs of a business strategy used for?

Answer 7

analyse existing business strategy statements understand what the organisation’s business strategy actually is:

Question 8

List the 5qs of business strategy.

Gentle Pictures Cause Golden Fears

Answer 8

1. Growth & profitability? 2. Products and services? 3. Customer and geographic markets? 4. Generic strategy? 5. Future industry position ?

Question 9

• What are the roles of vision and mission statements?

Answer 9

Vision statement - identifies the long-term strategic purpose of the organisation. Mission statement -‘operationalises’ the vision statement for the immediate future

Question 10

• What do we mean by value for consumers?

Answer 10

Difference between what is paid or incurred in costs and what is received in benefits from the product or service.

Question 11

• What is the value proposition?

Answer 11

What the customer wants

The value the customer places on each of those benefits.

Question 12

Define Business model

Answer 12

• The way an organisation aims to organise and focus itself to deliver its value proposition to customers.

Question 13

• What is the impact of sustainability on business strategy?

Answer 13

Sustainability = meeting the needs of stakeholders without compromising their ability to meet their needs in the future. Environmental and social aspects. Consider it’s effect on the 5qs:

Question 14

• What do we mean by dynamic strategy? What organisational attributes support it?

Answer 14

Dynamic Strategy - Strategy that changes and evolves over time to adapt to an environment and act on opportunities. Innovation and learning are essential

Question 15

Draw a SWOT analysis

Answer 15