Lecture 2 - Definitions Flashcards by Jenny Broomby

Who? Basic Financial Planning (Budgeting)

James McKinsey (1889-1937)

How well did you know this?

Not at all

Perfectly

Who? Long-range planning (extrapolation)

George Steiner (1960s)

How well did you know this?

Not at all

Perfectly

Who? Strategic (externally oriented) planning

Alfred Chandler (1962)

How well did you know this?

Not at all

Perfectly

Who? Strategic management

Igor Ansoff + Porter, Barney (1980s)

How well did you know this?

Not at all

Perfectly

Who? Complex Systems Strategy

Mintzberg, Eiseinhardt, Prahalad, Hamel, D’Aveni (1990s)

How well did you know this?

Not at all

Perfectly

What? Basic Financial Planning (Budgeting)

Budgeting would support strategic objectives of firm and all strategic choices

How well did you know this?

Not at all

Perfectly

What? Long-range planning (extrapolation)

5 year budgets and detailed operating plans

How well did you know this?

Not at all

Perfectly

What? Strategic (externally oriented) planning

External events influencing corporate performance

Business units strategic tactics vs. corporate strategies

Salaried professionals vs. traditional owner managers

How well did you know this?

Not at all

Perfectly

What? Strategic management

Pillars:

1) Strategic planning
2) Capability of a firm to convert written plans into market reality

How well did you know this?

Not at all

Perfectly

What? Complex Systems Strategy

…failure of equilibrium strategic model…

Environment must be understood in terms of its complexity, chaos and ecological constructs

How well did you know this?

Not at all

Perfectly

ESM

Equilibrium strategic model

What the firm has done in the past it will do in the future with the same success

How well did you know this?

Not at all

Perfectly

Strategic management is interested in:

The whole of the business

How well did you know this?

Not at all

Perfectly

Strategic management asks:

How can companies compete successfully?

Why do some companies succeed while others fail?

What managers can really do?

How well did you know this?

Not at all

Perfectly

Chandler’s definition of strategy

‘..the determination of the long-run goals and objectives of an enterprise and the adoption of courses of action and the allocation of resource necessary for carrying out these goals’

How well did you know this?

Not at all

Perfectly

‘..the determination of the long-run goals and objectives of an enterprise and the adoption of courses of action and the allocation of resource necessary for carrying out these goals’

Alfred Chandler (Strategic planning)

How well did you know this?

Not at all

Perfectly

‘Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value’

Porter

How well did you know this?

Not at all

Perfectly

Porter’s definition of strategy

‘Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value’

‘Strategy is firms’ theory about how to compete successfully’

Jeremy Barney

Jeremy Barney’s definition off strategy

‘Strategy is firms’ theory about how to compete successfully’

Johnson, Scholes and Whittington, 2008 (6)

the direction and scope of an organisation

over the long term

which achieves advantage

in a changing environment

through the configuration of resources and competences

with the aim to fulfil stakeholder expectations

the direction and scope of an organisation

over the long term

which achieves advantage

in a changing environment

through the configuration of resources and competences

with the aim to fulfil stakeholder expectations

Johnson, Scholes and Whittington, 2008

What are stakeholders?

Individuals or groups that depend on an organisation to fulfil their own goals and on whom, in turn, the organisation depends

Stakeholders

3 pillars of strategy:

Content

Process

Context

Strategy context

The environment where an organisation operates Political, social, economic and competitive environment conditions Corporate culture, structure and organisational politics

Content of strategy:

Corporate level Business level Operational level

Corporate-level strategy

Overall purpose and scope of an organisation and how to add value to business units (PRODUCT-MARKET DOMAIN)

Business-level strategy

The way a business seeks to compete successfully in its particular market (COMPETITIVE APPROACH)

Operational-level strategy

How different parts of the organisation deliver the strategy in terms of managing resources, processes and people (RESOURCES & CAPABILITIES)

Process of strategy

How the strategy will be developed, and who will be involved Deliberate vs. emergent strategies

Strategy statements should have ... aims:

3 aims: Fundamental goals organisation seeks which draw on stated mission, vision and objectives Scope or domain of organisation's activities Particular advantages or capabilities it has to deliver all of these

Mission

Overriding purpose in line with values/expectations of stakeholders

Vision

Desired future state of organisation - ASPIRATIONS

Objectives

Quantifiable statements of organisations goals over some period of time Precise statement of goal

Scope

Customers, geographical location, and extent of internal activities (vertical integration)

Advantage

Organisations competitive advantage

Strategic capability

Resources, activities, processes

Strategic position

Impact on strategy of: external environment, organisation's strategic capability (resources and competences) organisation's goals organisation's culture

Strategic choices:

Options for strategy in terms of direction and methods

Strategy in action:

How strategies are formed and implemented Emphasis on: practicalities of managing, planning and allocating resources, forming and re-forming organisational structure, managing strategic change