Lecture 4 Flashcards
(25 cards)
What is the purpose of an internal assessment?
To identify and evaluate a firm’s strengths and weaknesses in key functional areas like management, marketing, finance, operations, and more
What areas are included in an internal assessment?
Management
Marketing
Finance/Accounting
Production/Operations
Research & Development
Management Information Systems (MIS)
What are internal functional factors?
Organisational activities, structure, policies, and resources that impact firm performance
What is a distinctive competency?
A firm’s unique strength that is hard for competitors to imitate; often leads to competitive advantage
What is the Resource-Based View (RBV) of internal assessment?
A theory that internal resources are more critical than external factors in achieving competitive advantage
What are the 3 resource types under RBV?
Physical (e.g., plant, raw materials)
Human (e.g., knowledge, training)
Organisational (e.g., systems, planning processes)
What makes a resource valuable under RBV?
It must be:
Rare
Costly to imitate
Not easily substituted
What does VIRO stand for in evaluating resources?
Value
Imitability
Rareness
Organization readiness
→ If “Yes” to all = distinctive competence
What is organizational culture?
A system of shared values, beliefs, and norms that shape behaviour and decisions in the organisation
Why is culture important in strategy?
It can be a major strength or weakness; strong alignment supports strategy success, while misalignment hinders it
What are examples of cultural products?
Myths
Rituals
Heroes
Symbols
Values
Beliefs
What are the four core management functions linked to strategic management?
Planning → Strategy Formulation
Organizing → Strategy Implementation
Motivating → Strategy Implementation
Controlling → Strategy Evaluation
What is strategic planning in a firm?
A bridge between present and future to set goals, forecast trends, and define how objectives will be achieved
What does organizing involve in strategic management?
Defining tasks, reporting relationships, allocating resources, departmentalization, and delegating authority
What does motivating involve in strategic execution?
Influencing employees to meet objectives through leadership, communication, group dynamics, and HR management
What does controlling mean in strategic management?
Ensuring actual operations align with planned objectives by measuring and adjusting performance
What are sample questions from a management audit?
Are objectives measurable?
Is authority delegated well?
Is morale high?
Are control systems effective?
What are the 7 marketing functions evaluated in strategy?
Customer analysis
Selling
Product planning
Pricing
Distribution
Market research
Opportunity analysis
Sample marketing audit questions?
Is the market segmented effectively?
Is market share increasing?
Is research being used effectively?
What are the 3 core decisions in financial strategy?
Investment (capital budgeting)
Financing (capital structure)
Dividend (retained earnings vs. payouts)
What are functions of R&D in strategic management?
Product innovation
Process improvement
Cost reduction
What are MIS (Management Information System) functions?
Linking all departments
Supporting decisions with internal/external data
Supporting security and analytics
What is the IFE Matrix used for?
To identify and evaluate internal strengths and weaknesses in order to determine strategic direction
What qualities must internal factors have in the IFE Matrix?
Actionable
Quantitative (e.g., % or $)
Comparative (over time/competitors)
Divisional (relevant to specific areas or products)
