Week 3- Developing Strategy Flashcards
Having a deliberate and prescriptive strategy is seen as having what perspective?
A planning perspective
Having an emergent and descriptive strategy is seen as having what perspective?
Incremental perspective
What are some of the strategies involved in the deliberate and prescriptive strategy?
1- Strategic planning systems
2- Strategy workshops and project groups
3- Strategy consultants
4- Externally imposed strategy
What are some of the perceptions on strategies involved in the emergent and descriptive strategy?
1- Logical incrementalism- managers have generalised rather than specific views.
- Monitoring the environment and testing strategy in small steps.
2- Resource allocation routines- an example is a virtual meet on teams.
- Strategy develops as the outcome of resource allocation routines.
What are the types of resources that a firm will have?
1- Tangible resources
2- Intangible resources
3- Core capabilities- refers to the organisations potential for carrying out a specific activity or set of activities
What is the VRIO Framework
Valuable- Do a firm’s resources and capabilities add value by enabling it to exploit opportunities and neutralise threats?
Rare- How many competing firms already possess these valuable resources and capabilities?
Imperfectly imitable- Do firms without a resource or capability face a cost disadvantage in obtaining it, compared to firms that already possess it?
Organisation- Is a firm organised to exploit the full competitive potential of its resources and capabilities?
What is the definition of dynamic capabilities?
Dynamic capabilities- a firm’s ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments
Dynamic capabilities allow firms to:
1- Sense
2- Seize
3- Reconfigure
What are the views of an external in perspective?
1- Markets over resources
2- Focuses on market demand and industry structure
3- Adapts to the environment
What are the views of an internal out perspective?
1- Resources over markets
2- Focuses on resource base and value chain
3- Focuses on attaining distinctive resources
Improving the scope of an organisation includes:
1- Diversification
2- Vertical integration
3- Horizontal integration
4- Synergy vs responsiveness
What is diversification?
Involves entering into a new market or industry and creating a new product for that industry.
Example- Apple has diversified into tablets, watches, earphones
What is horizontal and vertical integration?
Horizontal integration- a strategy that involves a company acquiring another company in the same business line
Vertical integration- a strategy that involves a company taking control of one or more stages in the production or distribution of a product.
E.g, Netflix’s shift from licensing movies and tv series from creating studios to produce its own original content
What is synergy?
The concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts
What is responsiveness?
An organisation’s ability to identify and effectively adapt to the continuous change in their industry and in their customers’ preferences.
