Revision Flashcards
(113 cards)
1
Q
The three overall types of strategic choice
A
How to compete (Porter)
Direction of growth. (Ansoff)
Method of growth (acquisition vs organic)
2
Q
Business strategy
A
Concerned with how to compete successfully in particular markets.
This relates to the activities of a strategic business unit (SBU).
An SBU is a part of an organisation for which there is a distinct external market for goods or services
that is different from another SBU.
3
Q
Corporate strategy 
A
Corporate strategy is concerned with overall scope and purpose.
Geographical presence
Products or services offered
Compete on price or quality
How resources are allocated
4
Q
rational approach to strategy formulation
A
Complete an audit of resources and capabilities
apply known resources in capabilities to possible options 
5
Q
A non-market strategy
A
A strategy that maintains relationships with governments, media regulators and society large to achieve sustainable advantage.
6
Q
Downstream supply chain management
A
Coordinating the flow of information and goods with clients and customers 
7
Q
Foresight techniques
A
Used to improve management communication and awareness of complex issues and to provide a better understanding of future potential outcomes of strategies.
It helps to build communication and consensus of ideas
8
Q
Value chain and service industries
A
The value chain originally designed for using manufacturing context so can be difficult to apply to service businesses.
Making best use of the value chain is dependent on adopting at least some part of activity based costing, this can be time-consuming, difficult and expensive for service industries
9
Q
Strategic analysis phase of the strategic planning process
A
Includes stakeholder analysis and gap analysis to identify the difference between desired and expected performance
10
Q
A foreign direct investment strategy
A
An investment made by a company or individual in one country in business interest in another country
11
Q
McKenzie 7S model
A
Structure
strategy
style
staff
shared values
skills
Systems
12
Q
Kanter change adapt organisation attributes
A
Imagination to innovate
Professionalism to perform
Openness to collaborate
13
Q
Dimensions of the building block model
A
Profit
Competitive performance
Resource utilisation
Quality
Innovation
Flexibility
14
Q
Difference between shareholder value added and economic value added
A
Both are value based management measures designed to improve the market value added (MVA)) of an organisation.
SVA takes into account future earnings whereas EVA is based upon historic cost figures
15
Q
A virtual organisation
A
One whose members are geographically apart, usually working by computer email and groupware while appearing to others to be a single unified organisation with a real physical location.
16
Q
Competence syndication
A
Allowing customers to book third-party supplies through its website
17
Q
Ansof Market penetration
A
To increase market share using existing products with an existing markets
18
Q
Ansof Product development
A
Focus on the development of new products for existing markets
19
Q
Ansof Market develop
A
Increase sales by taking existing product into Newmarket
20
Q
Ansof Diversification
A
Often considered the most risky strategy for organisations and selling new products to Newmarket

21
Q
Operational (or functional) strategies
A
Concerned with ‘making it happen’, ensuring the component parts of the organisation effectively deliver the corporate and business level strategies in terms of resources, processes and people.
It encompasses:
HR strategy
Marketing strategy
Information and technology strategy
Operations strategy
22
Q
The three generic strategies (Porter)
A
Three strategic options for sustaining competitive advantage.
Cost leadership
Differentiation
Focus
23
Q
Ansoff’s product market matrix
A
After deciding on a generic strategy, the organisation has to decide which direction it will go in to pursue its generic strategy. Ansoff’s grid helps clarify the options.
24
Q
Six market model
A
Recruitment
Customer
Supplier
Influence
Internal
Referral
25
The platform (r)evolution
global platforms are becoming easier to establish and cheaper to run.
Developments such as cloud computing and mobile technology offer huge potential for innovation and quicker delivery of next-generation services.
The rate of evolution is only going to increase.
26
Internal marketing:
6 market model
internal departments of an organisation support customer needs, staff must know that the customer matters.
27
Marketing to suppliers:
6mm
Marketing to suppliers: aimed at ensuring a long-term conflict-free relationship at good price, with targets for quality and delivery.
28
Recruitment marketing:
6mm
people provide services, therefore good recruitment procedures are
essential, may wish to have strong links with schools and universities.
29
Referral marketing:
6mm
Referral marketing: developing and implementing a marketing plan to stimulate referrals. It may take some time to implement successfully, but could be very effective.
30
Influence markets:
Influence markets: a range of sub-markets which can influence customers, including: government regulators, professional institutes, standards bodies, lobbyists, stockholders, bankers, venture capitalists, financial analysts, stockbrokers, consumer associations, environmental associations, and
labour associations.
31
Customer markets
6mm
Customer markets are made up of the final consumers of a product or service. Payne sub-divides customer markets into existing customers and potential customers, yielding seven rather than six markets.
32
CIMA elements of organisational sustainability
Strategy and oversight
Execution and alignment
Performance and reporting
33
Factors that will lead to arise in the value of real option
Will rise as the project becomes more uncertain and the duration of the option rises
34
Triple bottom line
The three peas,
Profits people and planet
35
Ossification
Ossification refers to an unwillingness to change the performance measurement mix once it is set up – even if the business needs change.
36
Sub-optimisation
Sub-optimization occurs when individual departments or teams prioritize their objectives without considering the broader organizational goals. This lack of alignment can lead to conflicting strategies and hinder the cohesive functioning of the entire organization.
37
The first stage of scenario planning
The first stage of scenario planning is identifying high-impact, high-uncertainty factors that could affect the organisation.
38
transnational business
an enterprise that is involved with the international production of goods or services, foreign investments, or income and asset management in more than one country.
The fact that it still has a home country in which it is based would indicate that it is not a transnational.
39
Multinational business
a company that operates in its home country, as well as in other countries around the world. It maintains a central office located in one country, which coordinates the management of all of its other offices, such as administrative branches or factories.
does not obviously coordinate value adding activities between its overseas facilities (they are all similar growing and processing facilities in each country) it is not a multinational
40
Issues analysis
Issues analysis involves analyzing risks through their probability and impact
41
Cross-impact analysis
Cross-impact analysis considers how key events may interact with each other and how this could affect the business
42
Leaders can then focus on four key areas in order to move towards a digital culture
Communication
Journey management.
Making changes visible
Continuous change monitoring 
43
Scenario planning involves a number of distinct stages.
Identify high-impact, high-uncertainty factors in the environment
For each factor, identify different possible futures
Cluster together different factors to identify various consistent futures
Write the scenario
For each scenario, identify and assess possible courses of action
Monitor reality to see which scenario is unfolding
Revise scenarios and strategic options as appropriate
44
Carroll’s four-part model of corporate social responsibility
Legal responsibility.
Ethical responsibility
economic responsibility.
Philanthropic responsibility - be a good citizen 
45
Rockart claims that there are four sources for CSFs:
The industry of the business is in
The company itself and its situation within the industry.
The wider environment
Temporal Organisational factors
46
Form competitors
Form competitors sell products that satisfy the same needs as ours (and target the same market segments) but which have significantly different technical specifications – such as tents and caravans.
47
Carroll’s ethical responsibilities – responses
Reaction - denies any responsibility arguing it is not to blame
Defence - admit responsibility but fights it doing the very least that seems to be required 
Accommodation – the corporation responsibility does what is demanded of it by relevant groups.
Pro action the corporation 60 go beyond the industry norms and anticipates future expectations 
48
Reintermediation
creating a new stage in the supply chain
49
Disintermediation
removing a stage in the supply chain (such as selling direct to the end consumer)
50
countermediation
would occur if one of HGH’s rivals set up their own, similar intermediary to compete with HGH.
51
Industry analysis
likely to use Porter’s five forces
52
A value driver
is an activity or feature, which enhances the perceived value of a product or service by customers.
53
Derived demand
It is used to analyse a particular aspect of economic activity (i.e. the demand for electronics components) and use this to derive the demand for something else (i.e. demand for WEJ’s metals).
54
expansion’ gap.
represents future performance after new strategic initiatives have been undertaken.
55
diversification gap
Gap between desired performance and possible performance after levers have been pulled
56
Retrenchment
radical cost cutting, fewer employees and product lines
57
strategic grid model
is a contingency approach that can be used to determine the strategic relevance of IT to an organization
Support – low existing low future impact. ID has little relevance and simply supports existing processes
turnaround – low existing high future impact. IT features more on the business agenda in the future it may not have in the past
Factory – high existing low future impact important in terms of dates operations , but is not felt that any major IT developments on the horizon that will fundamentally alter the nature of the business. The key issue is the maintenance of existing systems.
Strategic – existing high future. How organisations view the current role of IT and the future development of IT will both be impacted.
58
Prototyping
instead of waiting until a new product has been perfected before bringing it to market, an organisation should recognise that speed to market is vital. So, the first generation of a product may be only about 80% ready, but it provides vital feedback in terms of customer reactions and what needs to be done with the second version
59
Competencies – critical success factors
A competencies are things that the business currently does well.
A critical success factor is something that business needs to do well in order to compete in its markets
60
organisation’s cultural web
Myths and stories,
Power and relationships
Symbols and titles
Control systems
Organisational structure
Rituals and routines
The paradigm
61
Value Shop
A value shop is an organization designed to solve customer or client problems, rather than creating value by producing output from an input of raw materials
Problem finding
Problem-solving
Choosing among solutions
Execution
Control/education 
62
The traditional approach to strategic planning
involves identifying major stakeholders and developing strategies to satisfy them.
63
Performance Pyramid (McNair, Lynch & Cross)
Levels
Business units – financial profit and market share.
Business operating systems – productivity, flexibility and customer satisfaction.
Department and work centres – waste, cycle time, delivery and quality 
64
Martin’s 5Cs model
advantages of an organisation developing foresight
co-ordination
consensus.
Communication (Correct)
Commitment (Correct)
Concentration (Correct)
65
Transaction marketing
focuses on the product, rather than the customer or service provided.
66
Gap analysis
A comparison between an entity’s ultimate objective and the expected performance from projects, both planned and under way
67
Counter skills for leaders in change adept organisations
Tuning into the environment
Challenging the prevailing organisational wisdom.
Communicating a compelling aspiration
Building coalitions
Transferring ownership to the work team
Learning to persevere
Making everyone a hero 
68
disadvantages of scenario planning?
Time did rationality
High cost
Risk of self fulfilling prophecy
69
Stochastic rivals
Stochastic rivals have no predictable pattern to their responses
70
The paradigm
The paradigm is the overall aim and purpose of the organisation
71
Non-market strategy
refers to an organisation’s relationship with groups other than its customers, competitors and suppliers.
72
Pricing at the maturity product life cycle stage
Maturity involves a stable market with relatively high numbers of competitors. Price matching (or going-rate pricing) would be most suitable here.
73
Vision statements
are the longer term aspirations of an organisation
74
Power skills" of change agents
ability to work independently, without the power and sanction of the senior management hierarchy behind them, providing visible support
ability to collaborate effectively
ability to develop relationships based on trust, with high ethical standards
self-confidence, tempered with humility
being respectful of the process of change, as well as the substance of the change
ability to work across different business functions and units
a willingness to stake personal rewards on results, and gain satisfaction from success.
75
Direct and indirect triggers
InDirect triggers a general environmental issues as would be found by pest analysis.
IDirect triggers are those the relative of the organisations industry and will be identified as part of the porters five forces
76
Reasons for resisting change
*Job factors
Fear of technological unemployment
Fear of changes to working conditions.
Fear of demotion or reduced pay.
*Social factors
dislike need to break up current social environment.
Personal dislike of people implementing change.
Lack of consultation leaving to rejection of change
*Personal factors
Implied criticism of current working methods
Feeling less valued
Work becomes more monotonous
77
Irvine and Martin, foresight has five main benefits –
known as the 5Cs. These are: communication, concentration, coordination, consensus and commitment.
78
Difference between a vision statement and a mission statement
Vision statements aim at abroad and long-term vision of what the future an organisation might look like.
Admission statement is a definition of the purpose of an organisation
79
Fitzgerald and moon
The building block model
Three elements
*Dimensions
Profits,competitiveness, quality
Resources, realisation
Flexibility, innovation
* standards
Ownership, achievability and equity.
* Rewards.
Clarity, motivation and Controlability
80
Civil Society organisations
Excludes governments, states, organisations of states and business organisations.
It includes, among others, professional associations.
81
The rational model three main stages
Analysis, choice and implementation.
The analysis stage looks at an organisation strategic position. This includes internal analysis and external analysis. These are then combined in the corporate swots analysis.
82
Cognitive dissonance
Cognitive dissonance occurs when an individual’s attitudes and behaviours are inconsistent.
83
Brand competitor 
A firm directly competes on the basis of brand
It creates a similar product and try to sell it to the same customers
84
Industry competitor
A firm that makes a similar product for different market sector
85
Generic competitor
I found that competes for the same income
86
Cotters eight step process of change leadership
Establish and sense of urgency
Creating the guiding coalition
Developing a change vision
Communicating the vision
Empowering broad-based action
Generating short term wins
Never letting up
Incorporating change into the culture
87
A workshop which mobilises resources to solve specific problems
A value shop 
88
Typical strategies that would form part of an effectiveness drive
Strategies that involve market penetration
Market or product development strategies or diversification 
89
Propensity modelling
Evaluating customer behaviour and then making recommendations for the future purchases 
90
Difference between explicit and tacit knowledge
Explicit knowledge can be formally documented and shared.
Tacit knowledge exist inside the heads of employees
91
SAF
Suitability considers whether the plan is appropriate for a businesses strategy.
Acceptability looks or whether the proposed is likely to please the major stakeholders.
Feasibility looks of whether the plan is possible
92
Carole ethical philosophies
Reaction
Defence
Accommodation
Pro action
93
Indirect triggers
typically relate to PEST issues – government legislation (political), public dissatisfaction (social) and new technological developments (technological) all fall into this category.
94
Direct triggers
are those identified by Five Forces – such as new banks entering the market (new entrants) and actions of rival banks (competitive rivalry).
95
Shareholder value analysis
The seven key value drivers
Slow cat
Sales growth
Life of project
Operating margin
Working capital
Cost of capital
Asset investment
Taxation 
96
The World Economic Forum proposes the following:
Formulate a long-term working strategy for Millennials.
Work with staff to formulate company values together.
Empower the workforce.
Build workspace is that attract digital talent?
Create policies to support collaboration and knowledge sharing tools. 
97
Outcome econom
organisations have an increased ability to measure the outcomes of the services that they deliver; customers are more attracted to outcomes than just simply to products, and this is what organisations should focus on.
98
The Platform (r)evolution –
global platforms are becoming easier to establish and cheaper to run. Developments such as cloud computing and mobile technology offer huge potential for innovation and quicker delivery of next-generation services. The rate of evolution is only going to increase.
99
The intelligent enterprise –
using data in a smart way enables organisations to become more innovative and achieve higher degrees of operating efficiency.
100
Factor conditions
looks at the supply side.
Factor conditions include the nation's production resources, including infrastructure, labor force, land, and natural resources. According to Porter, "a nation does not inherit but instead creates the most important factors of production—such as skilled human resources or a scientific base
101
The other name for shared values
Paradigm
102
Product rationalisation 
involves reducing the number of products an organisation sells so that it focuses on the products which generate the greatest profit. Most of an organisation’s revenue and profit comes from a small proportion of products.
103
Differentiation focus 
is about creating the customer perception that the product is superior to the offerings of competitors (in this case, scarcity value) and utilising this in niche markets (such as highly educated musicians and performers)
104
When formulating a strategy, there are three overall choices that have to be made
Competitive strategy – how to compete
Product market strategy – where to compete
Method of growth – organic, or external
105
brand atomization,
organisations design their offerings so that they can be more widely distributed and be part of the platform that is offered by other providers.
106
The three areas in which metrics are needed to measure digital traction are
Scale, Active Usage and Engagement.
107
Experiental pilots
means acting on feedback from customers to continually innovate and gauge further reactions.
108
Design thinking
Instead of designing a single product or service that can be marketed to many customers, there should be a shift in mindset to designing many experiences for one customer. This must be mixed with the ability to constantly learn and adapt as customer needs change.’
109
World Economic Forum/Accenture analysis, there are a number of factors that drive customer demands in the digital era
Contextualised interactions – this is a rather complicated way of saying that customers expect a product or service that is tailored to their own specific needs.
Seamless experience across channels – from being made aware that a product or service exists, to doing the research about the product or service, to then taking the decision to purchase, customers expect a seamless service throughout the process.
Anytime, anywhere – there is an expectation of being able to access real time information about a product or service
Great service (it doesn’t matter who provides it) – there is less instance these days of customers remaining loyal to a provider following an example of poor service.
Self-service – customers are prepared to invest more time and energy into getting exactly what they want.
Transparency – the digital customer expects to have full transparency of information about a product or service before they commit to a purchase.
Peer review and advocacy – there is greater instance these days of customers attaching more importance to independent reviews of products or services than to marketing information provided by the business or reviews from other organisations (such as trade journals).
110
A change agent
is someone who acts as a catalyst for change.
111
Theory O strategies
are ‘softer’ measures, often involving cultural adjustment or enhancing employee capabilities through individual or organisational learning
112
Accenture Technology Vision
The Internet of Me – users are being placed at the centre of digital experiences through apps and services being personalised.
Outcome economy – organisations have an increased ability to measure the outcomes of the services that they deliver
The Platform (r)evolution – global platforms are becoming easier to establish and cheaper to run. Developments such as cloud computing and mobile technology
The intelligent enterprise – using data in a smart way enables organisations to become more innovative and achieve higher degrees of operating efficiency.
Workforce reimagined – whilst greater use is made of smart machines, the role of human beings is not being removed altogether; they are simply being used in a different way
113
The stochastic competitor
reacts sometimes, not at all at others, and there is no discernible pattern. This makes the stochastic competitor dangerous
