1A - Developing Bus Strategy

Question 1

Strategy

Answer 1

Identifies how a company will function in its environment.
How to satisfy customers,
grow the business,
compete in it’s environment
manage the organization & develop capabilities within the business,
Achieve financial objectives

Question 2

Well CRAFTED Strategy - elements

Answer 2

-Strategic fit (fit to be adaptable)
Fit internal & external environments
Adapt to changing environment
-Create Competitive Advantages
Hard to imitate but sustainable in long run
-Produce Measureable Results
Inc. Share & market price, rev. ROI, Cust. satisfaction, retention

Question 3

Well EXECUTED Strategy - characteristics

Answer 3

• Disciplined leaders who allocate resources to strategic objectives
• Strategies are aligned from top down
• Mgers think in terms of results & measuring outcomes against objectives
• Employees understand strategic goals & their roles in attaining them

Question 4

Strategic planning and management process

Answer 4

1) Define vision, mission, values
2) Gather internal/external info
3) Set Objectives
4) Develop Strategy
5) Execute Strategy
6) Monitor, evaluate & cprrect

Question 5

Define vision, mission, values

Answer 5

Vision - Perception of the organizations future
Mission - The overall Goal(s) within business scope
Values - Important beliefs the members share - influence the way the company operate

Question 6

Gather internal/external info

Answer 6

External
Market Info - Customer wants, demand levels & trends
Industry - major rivals, competitive advantages, (technology - what competitors have done in the past and what is coming in the future)
Internal
Organization capabilities, capacity, & resources

Question 7

Set Objectives

Answer 7

Performance Objectives - measurements that monitor whether the firm’s strategy is being accomplished.
Performance objectives may differ based on aligning strategy level and hierarchical level.

Question 8

Develop Strategy

Answer 8

Outlines how function will perform its work