Lecture 3 Flashcards
What are features of deliberate and prescriptive strategy?
Direction, Commitment, coordination, optimisation, programming, planning perspective
What are features of emergent and descriptive strategy?
Opportunism, flexibility, learning, entrepreneurship, support, incremental perspective
Who/What influences strategy in the deliberate and prescriptive system?
- Strategic planning systems
- Strategy workshops & project groups
- Strategy consultants
- Externally imposed strategy
Who/What influences strategy in the emergent and descriptive system?
- External Changes
- Internal Innovation
- Stuff Happens
Mintzberg Fallacies - Prediction
- Detachment
- Formalization
What is the realistic perspective on strategy?
- No one right way in which strategy developed
- No one process describes strategy development
- Differs over time and in different contexts
- Perceptions of how strategies develop will be seen differently by different people
What types of resources does a firm have?
Tangible resources, Intangible resources, core capabilities
What are the features of the VRIO framework?
- Valuable: “Do a firm’s resources and capabilities add value by enabling it to exploit opportunities and/or neutralise threats?”
- Rare: “How many competing firms already possess these valuable resources and capabilities?”
- Imperfectly imitable: “Do firms without a resource or capability face a cost disadvantage in obtaining it, compared to firms that already possess it?”
- Organisation: “Is a firm organised to exploit the full competitive potential of its resources and capabilities?”
- Source: Barney(1995)
What are dynamic capabilities?
Capabilities that allow firms to sense, seize and reconfigure to a rapidly changing environment
What are the features of an external-in perspective?
Markets over resources, Opportunity driven (external potential), Makrte demand and industry structure, Adaptation to environment, Attaining advantageous position, External positioning, acquiring necessary resources, bargaining power and mobility barriers
What are the features of an internal-out perspective?
Resources over markets, strength driven (internal potential), resource base and value chain, attaining distinctive resources, superior resources and imitation barriers
What are the features of SWOT analysis?
Strengths - What do we do well, how can we capitalise on it
Weaknesses - What are we doing poorly and how do we fix it
Opportunities - What are they, what should we pursue
Threats - What are they, how do we counter them
What are some considerations when conducting SWOT analysis?
Long lists, judgemental, summary not a substitute
What is competitive advantage?
“a firm experiences competitive advantages when its actions in an industry or market create economic value and when few competing firms are engaging in similar actions.” (Barney (2002) p. 9)
What are the questions for the corporate strategist?
What is the scope of the corporation? How wide should the portfolio be?
What is the role of the parent company?
How should resources be allocated between the strategic business units?
What is the scope of an organisation?
Diversification:
- Vertical and horizontal integration
- Synergy vs responsiveness
