Pointers 2 Flashcards
(40 cards)
What is the first stage of the strategic management process?
Goal Setting (Defining Vision and Mission)
This stage involves establishing the organization’s purpose, vision, and mission, as well as defining long-term objectives.
What analytical tools are used in the Environmental Scanning and Analysis stage?
PESTEL, Porter’s Five Forces, SWOT, value chain analysis
These tools help assess the external environment and internal capabilities.
What does the Strategy Formulation stage involve?
Developing corporate-level, business-level, and functional-level strategies
This stage includes evaluating strategic options and ensuring alignment with organizational goals.
What is the main focus of the Strategy Implementation stage?
Translating strategies into actionable plans and allocating resources
Communication and engagement with stakeholders are also critical in this stage.
What key activities are involved in Strategy Evaluation and Control?
Monitoring implementation, assessing outcomes, and using performance metrics (KPIs)
Adjustments may be made based on feedback and changing circumstances.
True or False: Analysis alone is sufficient for effective decision-making in strategic management.
False
Integrating analysis with intuition is essential for well-rounded decision-making.
What is the role of intuition in strategic management?
It allows leaders to leverage experience and instincts, especially in ambiguous situations
Intuition complements analytical insights by enhancing adaptability.
What does the VRIO framework assess?
Resources and capabilities to determine sustainable competitive advantage
It evaluates resources based on Value, Rarity, Imitability, and Organization.
Fill in the blank: The vision statement outlines the long-term __________ of the organization.
aspirations
It defines what the organization hopes to achieve in the future.
What are the four perspectives of the Balanced Scorecard?
- Financial Perspective
- Customer Perspective
- Internal Business Process Perspective
- Learning and Growth Perspective
Each perspective provides a different view of organizational performance.
What does a strategy map illustrate?
How an organization’s strategic objectives are linked across the four perspectives of the Balanced Scorecard
It shows cause-and-effect relationships that drive organizational performance.
What is the purpose of the Financial Perspective in the Balanced Scorecard?
Evaluates financial performance to ensure strategy leads to profitability and growth
Common metrics include revenue growth, ROI, and cash flow.
How can the Learning and Growth Perspective impact other perspectives?
Improvements in Learning and Growth enhance Internal Processes, which leads to better Customer Satisfaction and increased Financial Performance
This illustrates the interconnectedness of the Balanced Scorecard perspectives.
What is the implication if a resource is valuable but not rare according to the VRIO framework?
It leads to competitive parity
This means that while the resource adds value, it does not provide a competitive advantage.
What is the significance of a clear vision and mission statement?
Provides direction, aligns stakeholders, and guides strategic decision-making
They also shape organizational culture and support branding.
What does the term ‘strategic agility’ refer to?
The ability to balance rigorous analysis with flexible intuition in decision-making
This is crucial for adapting to rapidly changing environments.
True or False: A well-crafted mission statement focuses mainly on long-term aspirations.
False
A mission statement defines the current purpose and how the organization delivers value.
What is one example of how intuition can enhance analytical insights?
Leaders may sense untapped opportunities or emerging threats not captured by data
This can lead to proactive strategic initiatives.
What does the term ‘stakeholder management’ imply in strategic management?
Understanding and managing the expectations and motivations of stakeholders
This helps improve relationship management and negotiation outcomes.
Fill in the blank: The __________ framework helps assess whether a company’s resources can lead to a sustained competitive advantage.
VRIO
It evaluates resources based on four criteria: Value, Rarity, Imitability, and Organization.
What is a key benefit of using a Balanced Scorecard?
Provides a comprehensive view of organizational performance
It encourages long-term thinking beyond short-term financial goals.
How does a strategy map improve communication within an organization?
It visually conveys strategic priorities and clarifies how strategies deliver results
This simplifies discussions with stakeholders.
What is the purpose of a strategy map?
Aligns strategic initiatives with business goals, clarifies complex strategies, connects operations to long-term success, guides informed decisions.
A strategy map is a visual representation that helps organizations understand their strategic objectives and how they interrelate.
What are the objectives of the Financial Perspective in a strategy map?
- Increase revenue through new service offerings
- Optimize IT operational costs
- Improve return on technology investments
These objectives aim to enhance profitability and stakeholder value.
