SA: Business Strategy Flashcards
Why do organisations need strategy?
The Business World is unpredictable. Many organisations have multiple services that they provide and a business strategy handles how these changes are undergone.
How has the way people are employed changed within an organisation?
There has been more of a focus put towards Job Satisfaction. With expectations put on providing a more flexible working environment as well as recognition for the work being done. There is also much more freedom put towards the individuals working in the environment due to the flat management structure.
What other changes must an organisation handle?
. Society has changed. There is more freedom of expression and information is much more readily available.
. Organisations try to increase flexibility within the environment. And also respond to change as accurately as possible.
What is the definition of strategy?
The strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.
Where does Strategy come from?
It gets introduced from either:
- the founder of the company
- the CEO
- Occasionally from Senior Managers who produce an incremental strategy of regular intervals of meetings to discuss the direction.
- the workers may provide innovative ideas
- sometimes it may be carefully planned out using a formal design process.
How to properly introduce a strategy?
You need to have internal an external analysis of the organisation.
You need to have a clear definition of the strategy, ensure that it is implemented properly and also well documented.
How does having a well documented strategy benefit the company?
It provides a focus for all members of the organisation so they are able to understand the strategy. It allows resources to be allocated
allows you to have a measure for key indicators of the success of the strategy.
It allows the strategy to be promoted and to raise expectations for any incoming changes.
How is the Business Analyst involved in the strategy process?
They are normally involved early on in the process. They decide the options and tactics available to support the business strategy. Once identified, they support the implementation and further refine these tactics to ensure that the objectives are being met.
What is the Project Managers responsibility in the strategy process compared to the Analyst?
The Analyst typically comes in BEFORE the Project Manager. The Analyst identifies the direction to go in and the Project Manager is responsible for ensuring the selected option is delivered.
What is PESTLE analysis?
An external business environment technique for developing business strategy.
Political. (Government stability)
Economic. Interest rate, growth rate etc….
Socio-cultural. Arises from customers and demographics.
Techonological. Developments in technology.
Legal. Health and Safety laws. Employment laws etc…
Environmental. Green Issues. Carbon reduction. Packaging etc….
What is the Porter’s Five Forces Framework?
Another External business environment technique for developing a business strategy.
It looks at a different focus compared to PESTLE. It focuses mainly on the business domain and looks at the competitors within that domain. Using:
Industry competitors in the center and how your business domain and your competitors deal with:
- Buyers: Do they have a choice? Is it easy for them to switch from what we produce to what others produce?
- Substitute: What is position of what we produce in comparison to others?
- Suppliers: How many suppliers are there? How much power do they have?
- Potential Entrants: Potential entrance to the business domain. What is the cost of it? What patents to respect?
What is MOST analysis?
An internal way of looking at the environment in achieving the business strategy of an organisation. It focuses on whether there are well defined and understood directions and goals within the organisation.
Mission: Current mission in place. Does it describe the direction.
Objectives: Goals that the organisation aims to acehive. This along with the mission are long term plans.
Strategy: Medium-long term plan that enables you to achieve the objectives.
Tactics: Short term plan that enables to deliver the strategy.
What is a Resource Audit?
An internal environment analysis technique used for developing a business Strategy.
It determines how easy it will be to adopt change for achieving goals and objectives within the business by evaluating the resources available and whether they will hold back any objectives wanted to achieve.
What aspects are examples within a Resource Audit?
Finanacial: Any funds available?
Physical: Land available? Equipment? Buildings?
Human: Expertise, people employed, adaptability to change? Commitment?
Know-how: information, how it is held and used.
Reputation: Perception of the company within the market place.
What is the Boston Box?
Where you look at the portfolio within the company and the range of products you produce. You compare it to a set of 4 quadrants that determine it’s market share and market growth.
