What is Strategy? Flashcards
1
Q
Importance of strategy
A
- Sustainability
- Finance & GDP
- Technology
- Not for profits
2
Q
What is strategy?
A
- Organisation as a whole (holistic view)
- Long term direction & wide scope
- Aims and ambitions (Eg. mission statements)
3
Q
External environmental pressures
A
- Product life cycle
- working practices
- politics
- income distributions
- ethics of products
- Diversity of board of directors
4
Q
How to achieve competitive advantage?
A
- Deliver value uniquely
- make choices about how to compete
5
Q
Strategy is NOT…
A
- about being the best
- a single action
- just a goal or vision
6
Q
Responsibilities of the firm and role in society
A
- value for customers
- employ and reward staff
- returns for shareholders
- supporting the community
- deliver wider societal good
7
Q
Competitive advantage
A
- customers consider consistency
- differences are direct consequence of a specific capability gap
- differences are expected to endure over time
8
Q
issues with competitive advantage
A
- High (supernormal) profits
- Attracts competition
- Limits duration of advantage
- usually temporary
