Lecture 1 - Chapter 2

Question 1

what is strategy ?

Answer 1

strategy is the direction and scope of an organisation over the long term, which achieves advantage for the organisation through its configuration of resources within a changing environment.

Question 2

rational and emerging strategies, what are they?

Answer 2

Rational = Use of studies and information to make strategic decisions.

Emerging = Use of forecasts and trend presumptions to form stratergies.

Question 3

what makes planning more strategic?

Answer 3

-it considers the long term
-considers the whole organisation
-considers the resources it has
-considers all stakeholders
-considers sustainable competitive advantage.

Question 4

what are the three types of advantages a business can leverage?

Answer 4

-product differentiation
-product focus
-cost leadership

Question 5

what period is considered long term?

Answer 5

5-10+ years

Question 6

what is a GAP analysis?

Answer 6

an analysis done to form a strategy to ensure a company meets its goals.

Question 7

what is included in the corporate appraisal?

Answer 7

the internal and external analysis

Question 8

how is the rational approach structured?

Answer 8

corporate appraisal - Missions and objectives - GAP - Strategic choice - Strategy implementation.

Question 9

what are some of the Merits of strategic planning?

Answer 9

-provides a framework
-promotes long-term planning
-considers the needs of stakeholders
-goal congruence (ensuring everyone has similar goals)
-Monitors progress
-optomised use of resources.

Question 10

What are some of the Demerits of strategic planning?

Answer 10

-Business may need to be more dynamic
-formal planning reduces innovative thinking
-political infighting can disrupt the process.

Question 11

which types of organisations use the emergent approach?

Answer 11

-those companies that operate in dynamic environment that require quick decision-making.
-have flexible, decentralised and organisational structures allowing local managers to make quick decisions.

Question 12

resource based approach (inside out)

Answer 12

Focus on developing internal resources and competences which are hard to imitate and find or create.

Question 13

Positioning (Outside-in)

Answer 13

Focus on analysing the external environment to identify customers needs.

Question 14

why do management need to balance short-term and long-term goals?

Answer 14

-some shareholders may demand a quicker return
-banks may expect returns over a longer period of time
-some industries may expect returns generated over a longer period of time