Chapter 1a

Question 1

Define “Strategy”

Answer 1

A course of action, including the specification of resources required, to achieve a specific objective

Question 2

Mintzberg’s 5 Elements of Strategy

Answer 2

Plan
Pattern
Ploy
Position
Perception

Question 3

Campbell’s Effective Mission Statement

Answer 3

Purpose
Strategy
Values
Policies / standards of behaviour

Question 4

SMART

Answer 4

Specific 
Measurable 
Agreed/Attainable 
Realistic/Relevant 
Timebound

Question 5

Objectives should be:

Answer 5

• consistent (horizontally, vertically, over time)
• SMART
• Suitable, feasible, acceptable

Question 6

Johnson, Scholes and Whittington: 4 Key Areas of a Position Audit

Answer 6

1. Threshold or basic resources
2. Threshold competencies
3. Unique Resources
4. Core competencies

Question 7

Prahalad and Hamel: 3 Aspects of core Competencies

Answer 7

1. Provide access to a wide variety of markets
2. Increasing customer benefits
3. Hard for competitors to match

Question 8

Define “Strategic Stretch”

Answer 8

How an organisation could use it capabilities and core competencies to compete efficiently

Question 9

Kay’s 4 Areas of Capability Distinctiveness

Answer 9

1. Competitive Architecture
2. Reputation
3. Innovative Ability
4. Ownership of Strategic Assets

Question 10

Define “Critical Success Factor”

Answer 10

The components of strategy where the organisation must excel to out perform the competition. These are underpinned by competencies which underpin this success.

Question 11

Porters 3 generic strategies

Answer 11

Cost Leader
Differentiation
Niche or Focus

Question 12

Strategic Apex

Answer 12

The source of direction for the organisation (board of directors)
Seek control

Question 13

Middle Line

Answer 13

Middle managers that convert direction into tasks and procedures.
Seek autonomy

Question 14

Operating Core

Answer 14

Provide outputs of the organisation.

Seek autonomy and mutual working

Question 15

Technostructure

Answer 15

Advise the operating core.

Seek to standardise through procedures and checking

Question 16

Support Staff

Answer 16

Support the operating core.

Seek their expertise to be recognised.

Question 17

Logical Incrementalism - Lindblom

Answer 17

Managers tend to make changes only in small steps, even if a radical strategy that requires more drastic action is implemented

Question 18

Logical Incrementalism - Quinn

Answer 18

The manager moves towards a defined destination through a series of small steps, adapting to circumstances as they change

Question 19

Threshold resources

Answer 19

Resources required to meet minimum customer requirements and to survive

Question 20

Threshold competencies

Answer 20

The activities and processes required to meet minimum customer requirements and to survive

Question 21

Unique resources

Answer 21

Provide or underpin competitive advantage; and difficult for competitors to imitate or obtain

Question 22

Core competencies

Answer 22

Activities and processes that provide or underpin competitive advantage; are difficult for competitors to imitate or obtain

Question 23

Cost leader

Answer 23

Aims to have the lowest costs

Question 24

Differentiation

Answer 24

Aim to do things, or appear to do things, differently

Question 25

Niche or focus

Answer 25

Concentrate on a segment of the market (and possible combine with either a cost leader of a differentiation approach

Question 26

Stuck in the middle

Answer 26

Anyone stuck in the middle of the cost leader and the differentiator will be squeezed out first if there is a rise in costs or selling prices. Porter advocates using the value chain to differentiate or drive costs out of the business.s