1. The Strategy Process

Question 1

What is strategy?

Answer 1

The direction and scope of an organisation over the long term, including the resources required to achieve a specific objective

Question 2

What is a strategic plan?

Answer 2

A statement of long term goals along with a definition of the strategies and policies which will ensure achievement of these goals

Question 3

What are the 3 different led approaches to strategy setting?

Answer 3

1. Accounting led
2. Market let
3. Competence led

Question 4

What are Johnson and Scholes 5 characteristics of strategic decisions?

Answer 4

1. Long term direction
2. Scope consideration
3. Strategic fit
4. Resources and competencies
5. Influence of stakeholders

Question 5

What does Porter say is the essence of formulating competitive strategy?

Answer 5

Relating a company to it’s environment

Question 6

What are the 2 difficulties of objectives for not for profit organisations?

Answer 6

1. There may be multiple
2. They can be hard to measure

Question 7

What are the 3 Es of a Value for Money objective?

Answer 7

1. Economy - minimise cost
2. Efficiency - right way
3. Effectiveness - right things

Question 8

What are the 3 ‘levels’ of strategy?

Answer 8

1. Corporate
2. Business
3. Operational

Question 9

What is corporate strategy concerned with?

Answer 9

The overall purpose and scope of the firm and how value will be added i.e. which business/market to enter

Question 10

What are the 4 main examples of corporate strategy considerations?

Answer 10

1. Geographical presence
2. Products offered
3. Competing on price or quality
4. Resource allocation

Question 11

What is business strategy concerned with?

Answer 11

How to compete successfully in particular markets, in particular the activities of SBUs

Question 12

What is an SBU

Answer 12

A strategic business unit - a part of the org for which there is a distinct external market for goods or services (e.g. different geographies or different functionalities)

Question 13

What are the 2 main examples of business strategy considerations?

Answer 13

1. Which products in which particular markets
2. How to gain competitive advantage in a particular market

Question 14

What is operational strategy concerned with?

Answer 14

Ensuring the component parts of the organisation effectively deliver the corporate and business level strategies

Question 15

What are the 4 main examples of operational strategy considerations?

Answer 15

1. HR strategy
2. Marketing strategy
3. IT strategy
4. Daily operations strategy

Question 16

What are the 8 steps in the rational model of strategic planning?

Answer 16

1. Set mission & objectives
2. Analyse the environment
3. Position audit
4. Corporate appraisal
5. Generate strategic options
6. Evaluate and choose
7. Implement change management
8. Review & control

Question 17

How is rational planning orchestrated?

Answer 17

Strategic planning that is imposed from the top downwards

Question 18

What are the 2 issues with rational planning?

Answer 18

It can lack flexibility and be bureaucratic

Question 19

What are the 5 use conditions for rational planning?

Answer 19

1. Large organisations
2. Stable environments
3. Clear sense of direction
4. Long lead times
5. Experienced staff at the top and less experience lower level staff

Question 20

What is logical incrementalism?

Answer 20

Guiding actions and events towards a conscious strategy in small scale steps - extending existing strategy, not coming up with a new one

Question 21

What are the 2 use conditions for logical incrementalism?

Answer 21

1. Clear end goal
2. Unsure best way to get there

Question 22

What is freewheeling opportunism?

Answer 22

Taking opportunities as they are, with little formal planning

Question 23

What type of organisation is best suited to freewheeling opportunism?

Answer 23

Small organisations

Question 24

What are emergent strategies?

Answer 24

Strategies which emerge over time as organisations innovate and respond to their market

Question 25

What are Mintzberg's 5 roles of senior management under emergent strategies?

Answer 25

1. Manage stability 2. Detect discontinuity (environmental scanning) 3. Know the business 4. Manage patterns 5. Reconcile change and continuity

Question 26

What are the 4 use conditions for emergent strategy?

Answer 26

1. Good business knowledge 2. Trusting culture 3. Freedom to fail 4. Time money and resources to explore and develop ideas

Question 27

What are Johnson and Scholes 3 elements of strategic management?

Answer 27

1. Choice 2. Implementation (+ control) 3. Analysis

Question 28

What is the organisational ecosystem?

Answer 28

The concept that a business ecosystem is an economic community supported by a foundation of interacting organisations and individuals, who evolve together over time and align themselves to one direction. All members are strongly influenced by one another.