Understanding Strategy and Performance

Question 1

What is Strategy

Answer 1

Asks: What integrated actions can you do you keep and maintain competitive advantages within your product market?

Question 2

Types of Strategies

4 strategies

Answer 2

• Intended | What we are planning to do
• Deliberate | Planned strategy that was executed until Realized
• Realized | the actual strategy, shaped by emergent, intended and, deliberate
• Emergent | What are now going to start doing due to an environmental shift , either internal or external

Question 3

Ways to Measure Performance: Explain the Balance Scorecard

Answer 3

1. Financial Perspective
   * Revenue Growth: Measures the increase in sales over time.
   * Profitability Ratios: Includes gross margin, operating margin, and net profit margin.
   * Return on Investment (ROI): Evaluates the efficiency of an investment.
   * Cost Management: Measures cost per unit or total cost as a percentage of revenue.
   * Cash Flow: Analyzes the net amount of cash being transferred in and out of the business.
2. Customer Perspective
   * Customer Satisfaction Index: Surveys or feedback forms that measure customer satisfaction.
   * Net Promoter Score (NPS): Gauges customer loyalty and the likelihood of referrals.
   * Customer Retention Rate: The percentage of customers who remain with the company over a given period.
   * Market Share: Measures the company’s share of the total market sales.
   * Customer Acquisition Cost (CAC): The cost associated with acquiring a new customer.
3. Internal Business Processes Perspective
   * Process Efficiency: Measures the time taken to complete key processes.
   * Quality Metrics: Includes defect rates, error rates, or compliance with standards.
   * Innovation Metrics: Number of new products developed or time to market for new products.
   * Cycle Time: The time taken to complete a process from start to finish.
   * Operational Efficiency: Measures productivity and cost-effectiveness of operations.
4. Learning and Growth Perspective
   * Employee Engagement: Surveys that measure employee satisfaction and engagement levels.
   * Training and Development Metrics: The number of training hours per employee or the cost of training as a percentage of total payroll.
   * Employee Turnover Rate: Measures the rate at which employees leave the organization.
   * Skill Development: Assessment of employee skill improvements or certifications obtained.
   * Knowledge Management: Metrics related to the effectiveness of knowledge sharing and collaboration.

Question 4

what is the difference between Mission and Vision?

Answer 4

Vision is about the future and long-term goals (hence, visioning into the future) ,
Mission is about the present and day-to-day purpose.

Ex.
* Vision: “To be the leading provider of renewable energy solutions worldwide.”
* Mission: “We provide affordable, sustainable energy solutions to power communities and businesses, helping to build a cleaner future.”