6. Strategy Process

Question 0

Who is responsible for strategic planning?

Answer 0

Senior managers and the board

Question 1

Who is responsible for operational planning?

Answer 1

Middle managers

Question 2

What is the focus of operational planning?

Answer 2

Operational dun

Question 3

What is the focus of strategic planning?

Answer 3

Tactical

Question 4

What is the scope of operational planning?

Answer 4

Routine activity at departmental level

Question 5

What is the scope of strategic planning?

Answer 5

Significant, large scale actions at organisational level

Question 6

What is the purpose of operational planning?

Answer 6

Achieve stated purpose of organisation

Sustain routine operations

Question 7

What is the purpose of strategic planning?

Answer 7

To gain and maintain advantage over rivals
Growth
Improvement

Question 8

What is the timescale of operational planning?

Answer 8

Typically one to three years

Question 9

What is the timescale of strategic planning?

Answer 9

Typically three to five years

Question 10

How is operational planning generally monitored?

Answer 10

KPIs on a monthly basis

Question 11

How is strategic planning generally monitored?

Answer 11

Through a balanced scorecard quarterly

Question 12

What is operational planning informed by?

Answer 12

Strategic objectives

Day to day requirements

Question 13

What is strategic planning informed by?

Answer 13

Vision and mission statements

Strategic objectives

Question 14

What is the nature of the content of operational planning?

Answer 14

Systematic
Detailed
Routine

Question 15

What is the nature of the content of strategic planning?

Answer 15

Complex
Uncertain
Requiring organisational change

Question 16

Typically, the strategy is determined by the most — managers in the organisation.

Answer 16

Senior

Question 17

In the private sector, list eight competitive strategies

Answer 17

Cost efficiencies
Pricing strategies
Aggressive marketing
Product innovation

After-sales service
Diversification
Mergers
Takeovers

Question 18

What three competitive strategies were identified by Porter?

Answer 18

Cost leadership
Differentiation
Focus

Question 19

Not for profit strategies focus principally on — — —

Answer 19

Value for money

Question 20

An advantage of strategic planning is that is reduces —

Answer 20

Uncertainty

Question 21

An advantage of strategic planning is that it allows for better — of risks and increased ability to control them

Answer 21

Identification

Question 22

An advantage of strategic planning is that it creates greater organisational — in operational activity

Answer 22

Coherence

Question 23

An advantage of strategic planning is that is provides a better — on mission and vision

Answer 23

Focus

Question 24

An advantage of strategic planning is that it creates the possibility of m---, m--- and c---

Answer 24

Management Monitoring Control

Question 25

--- --- are forms of agreements between organisations through which common goals are pursued by concerted efforts

Answer 25

Strategic alliances

Question 26

Strategic alliances occur in several forms including (4)

Answer 26

Joint ventures Virtual organisations Corporate venturing Value-managed relationships

Question 27

Re: strategic alliances, it is important for an organisation to define its own --- very clearly

Answer 27

Objectives

Question 28

A very important control I strategic alliances is to ensure there is --- --- specifying the responsibilities and rights of all parties

Answer 28

Clear agreement

Question 29

--- --- --- should be used to monitor the performance of parties in a strategic alliance

Answer 29

Key performance indicators

Question 30

List five advantages of strategic planning

Answer 30

Reduction of uncertainty Better and earlier identification and control of risks Greater organisational coherence in operational activity Better focus on mission and vision Possibility of performance management, monitoring and control

Question 31

List five essential steps in a 'strategic alliance process'

Answer 31

``` Set alliance strategy Select partner Structure alliance Manage alliance Re-evaluate alliance ```

Question 32

Setting the alliance strategy: this should be founded on the overall --- ---

Answer 32

Business strategy

Question 33

Selecting a partner: --- used should be part of alliance strategy

Answer 33

Criteria

Question 34

Structuring the alliance: agree all the --- and --- terms and mechanisms for governance

Answer 34

Legal | Financial

Question 35

Managing the alliance: follow a detailed --- ---

Answer 35

Implementation plan

Question 36

Re-evaluating the alliance: should be a --- ---

Answer 36

Continuous process

Question 37

A value for money strategy is a combination of maximising the --- of services while using limited resources efficiently

Answer 37

Quality

Question 38

A value for money strategy is a combination of maximising quality of services while using limited resources as --- as possible

Answer 38

Efficiently

Question 39

--- --- means there is a growing gap between what an organisation does and its intended purpose

Answer 39

Strategic drift

Question 40

To help avoid strategic drift, an organisation can use --- measures

Answer 40

Performance

Question 41

--- --- can help avoid strategic drift through providing assurance on processes and resources adopted to undertake the strategy process

Answer 41

Internal audit

Question 42

--- --- are different perspective on what the strategy is

Answer 42

Strategy lenses

Question 43

List the three strategy lenses

Answer 43

As design As experience As ideas

Question 44

What are the eight key steps in a strategy process?

Answer 44

Define organisation's purpose Analyse prevailing conditions Develop strategic objectives Assess risks to objectives Operationalise strategic objectives into planned activity Implement operational plans Monitor performance Review and adjust

Question 45

When defining the purpose of the organisation, mission and vision statements should be c---, i---, easy to c---, easy to r---

Answer 45

Clear Intelligible Communicate Remember

Question 46

In the strategy process, analysing prevailing conditions would involve what six things?

Answer 46

Audit of resources and competencies Analysis of products and services Analysis of performance Analysis of value chain Analysis of economic value added Assessment of external environment

Question 47

An organisation's c--- c--- are what give it competitive advantage over its closest rivals

Answer 47

Core competencies

Question 48

What four headings are used in SWOT analysis?

Answer 48

Strengths Weaknesses Opportunities Threats

Question 49

In SWOT analysis, opportunities are sometimes referred to as 'strategic ---'

Answer 49

Gaps

Question 50

In value chain analysis, --- --- are those that relate directly to the transformation process

Answer 50

Primary activities

Question 51

In value chain analysis, --- --- include human resources, finance, purchasing, etc

Answer 51

Support activities

Question 52

Value chain analysis helps identify each activity that --- --- to the end product or service

Answer 52

Adds value

Question 53

Value chain analysis helps separate out --- and --- drivers

Answer 53

Cost and value

Question 54

In value chain analysis, --- --- are those factors that help to minimise cost

Answer 54

Cost drivers

Question 55

In value chain analysis, --- --- are those factors that add features to the product valued by the consumers

Answer 55

Value drivers

Question 56

The Boston Matrix is used to analyse existing products and sales under what four headings?

Answer 56

Cash cows Dogs Rising stars Problem children

Question 57

In the Boston Matrix, --- --- are products that are tried, tested and successful

Answer 57

Cash cows

Question 58

In Boston Matrix analysis, --- may once have been successful, but are not now generating significant interest

Answer 58

Dogs

Question 59

In Boston Matrix analysis, --- --- are successful and have a great potential for growth

Answer 59

Rising stars

Question 60

In Boston Matrix analysis, --- --- have been showing disappointing performance but should be doing much better

Answer 60

Problem children

Question 61

What are the four typical strategies of the Boston Matrix?

Answer 61

Build market share Maintain market share Harvest rewards Divest

Question 62

On what two dimensions does the McKinsey/General Electric matrix focus?

Answer 62

Competitive strength | Market attractiveness