l4 Flashcards
(36 cards)
what is strategic planning?
focuses extensively on external environment to which business adapts
what is strategic management?
takes inside out view, that internal competences & resources are not just means to adapt to market - they are source of strategic advantage
explain the difference between resources and competences.
resources - things you HAVE
competences - things you DO
what are critical success factors?
a small number of key goals vital to the success of an organisation
what are the 9Ms (resources) that can be considered CSFs?
- men
- money
- management
- make up
- machinery
- methods
- markets
- materials
- mgt info
resources include physical, intangibles, human, technological & financial
what are competences according to kays four sources?
- competitive architecture
- reputation
- innovative ability
- strategic assets
what does competitive architecture refer to in kays four sources?
internal eg. employees
external eg. suppliers
network eg. collaborating firms
what is a threshold resource?
basic resources needed by all firms in the market. will not give a firm SCA. eg. every cash & carry wholesaler needs warehouse
what is a unique resource?
resources giving SCA to help achieve CSFs. resources are better than competition & are hard to copy. eg. costco has prime site near m60
what is threshold competences?
activities & processes using / linking resources necessary to stay in business. does not give SCA. eg. every cash & carry wholesaler needs buying function
what is core competences?
critical activities & processes giving SCA (helps business to meet CSFs). competences are better than comp and hard to copy. eg. costco have superior buying function, better EoS, quality?
what is the idea of benchmarking?
strengths and weaknesses are relative, so comparison must be made with competitors & industry leaders.
give the 4 types of benchmarking.
- internal
- competitive
- activity
- generic
explain the internal type of benchmarking.
review targets within the company, danger is that performance against competitors is ignored. eg. div As vs Bs sales
explain the competitive type of benchmarking.
comparison to other firms in same industry. eg. using league tables or comp As vs Bs profit margin
explain the activity type of benchmarking.
comparison with best practice in any industry for a particular activity. eg. comparing customer service to a company (in other industry) who is considered to be market leader in customer service
explain the generic type of benchmarking.
conceptually similar process. eg. comparing hospital beds booking system with booking system of theatre
what is a value chain?
allows strategist to think of organisation in terms of activities, meaning can understand which activities create most value
what are the 5 primary activities according to the value chain model?
- inbound logistics
- operations
- outbound logistics
- marketing & sales
- service
what is the primary activity “inbound logistics” according to the value chain model?
receiving, storing & distributing inputs to product or service. includes materials handling, stock control, transport
what is the primary activity “operations” according to the value chain model?
activities that transform inputs into product or service. eg. machining, packaging, assembly, testing
what is the primary activity “outbound logistics” according to the value chain model?
collect, store, distribute product or service to customers. eg. warehousing, materials handling, distribution
what is the primary activity “marketing & sales” according to the value chain model?
means by which consumers or users are made aware of product or service, and able to purchase it. eg. adminstration, advertising, selling
what is the primary activity “service” according to the value chain model?
activities that enhance or maintain value of product or service. eg. installation, repair, training, spares
