BST

Question 1

What is strategy?

Answer 1

The direction and scope of an organisation over the long term

Question 2

What is corporate strategy?

Answer 2

Concerned with an organisations basic direction for the future, purpose, ambitions and how it interacts with the world in which it operates

Question 3

What are the advantages of the rational planning model?

Answer 3

Formal planning process

Structured, long term goals and objectives

Clear communication of strategy to stakeholders

Question 4

What are limitations to the rational planning model?

Answer 4

Assumes that future outcomes can x always be predicted and controlled

Planning cycle is less frequent, and may be too slow to react to change

Top down and rigid approach which may reduce initiative

Question 5

Who designed the emergent strategy and what was it designed for?

Answer 5

Mintzberg

Designed to address the criticisms of the rational planning model

Question 6

What are intended strategies?

Answer 6

Conscious plans imposed by management (if implemented = deliberate strategies)

Question 7

What are emergent strategies?

Answer 7

Allow for ideas from outside the formal planning process to be incorporated into the strategic plan

Question 8

What is incrementalism?

Answer 8

Breaks the strategic plan into a series of steps

Question 9

What are the 5 types of strategies?

Answer 9

Intended

Deliberate

Unrealised

Emergent

Realised

Question 10

What are the characteristics of positioning view of strategy?

Answer 10

Focus on customer needs

Analysis of the industry to gain relative market share

Assessment of relations with stakeholders

Seeking to gain preferential access to resources

Question 11

What is the resource based view of strategy and characteristics?

Answer 11

Resources and competencies needed for successful execution

Aiming for new strategic developments

Existing resources are used in many different ways

Creation of new markets

Question 12

What are influences of planning horizons?

Answer 12

Nature of ownership

Capital structure

Nature of industry

Nature of business environment

Nature of management

Question 13

What are the main objectives of budgeting?

Answer 13

PRIME

Planning

Responsibility

Integration and coordination

Motivation

Evaluation and control

Question 14

What is a mission?

Answer 14

Values and expectations of those with the scope and posture of the organisation

Question 15

What are the features of a successful model according to Campbell?

Answer 15

Purpose

Strategy

Policies and standards of behaviour

Values

Question 16

Benefits of missions statements?

Answer 16

Provide a basis for the control of organisations

Communicate the nature of the organisation to stakeholders

Help to instill core clause

Question 17

What are negatives of missions statements?

Answer 17

Little more than PR exercise

Full of banal generalisations

May be ignored

Question 19

What are the 2 approaches to strategy formulation?

Answer 19

Rational

Emergent

Question 20

What are the 5 areas in which CSFs should be identified?

Answer 20

Structure of the industry

Competitive strategy

Environmental factors

Temporary factors

Functional management issues

Question 21

What are SMART target?

Answer 21

Specific
Measurable
Achievable
Relevant
Time bound

Question 22

What are the 3 E’s that NFPs use to identify their objectives?

Answer 22

Economy

Efficiency

Effectiveness

Question 23

What are internal sources of power?

Answer 23

Hierarchy and status
Informal power relationships
Control of strategic resources
Knowledge or skills
Decision making

Question 24

What are external sources of power?

Answer 24

Control of strategic resources
Knowledge and skills
External dependency links
Social position
Legal rights

Question 25

Describe mendelows matrix and the 4 areas?

Answer 25

Level of interest and level of power Low and low - minimal effort = casual labour Low interest high power - keep satisfied High interest low power - keep informed High interest high power - key players I.e managers employees

Question 26

Examples of environmental issues?

Answer 26

Biodiversity loss Greenhouse gas emissions Climate change Use of renewable energy Water or resource depletion

Question 27

What are examples of social issues?

Answer 27

Human rights Labour standards Workplace health and safety Freedom of association Freedom of expression

Question 28

Example of governance issues?

Answer 28

Bribery and corruption Business ethics Internal controls Board structure Executives pay Disclosure of information

Question 29

What are the different responses organisations can take for corporate social strategy?

Answer 29

Proactive - full responsibility Reactive - unresolved until identified by the public Defence - minimising action Accommodation - taking responsibility due to pressure from other groups

Question 30

What does PESTEL analysis stand for? And what is it used for?

Answer 30

Used as a checklist for understanding the external environment. Political Economic Social Technological Ecological Legal

Question 31

What are static environments in business?

Answer 31

Few competitors Limited products Slow rate of change Historical environment may be indicative of future

Question 32

What is a dynamic environment?

Answer 32

Complex and characterised by rapid change Large amounts of resources needed assessment