strategy and implementation Flashcards
(58 cards)
What is the relationship between objectives and strategy?
- Objectives define what a business wants to achieve
- strategy outlines how it will be achieved.
What is a business strategy?
A strategy is a long-term plan of action designed to achieve a business’s objectives.
What is a corporate strategy?
- Corporate strategy refers to decisions that affect the whole organisation
- including mergers, long-term financial goals, and resource allocation.
What is strategic direction?
Strategic direction is the course of action that guides the achievement of corporate objectives.
What is a divisional strategy?
- A divisional strategy sets objectives and plans for specific business areas
- e.g. product divisions or geographic regions
- based on corporate goals.
What is a functional strategy?
A functional strategy supports divisional and corporate objectives through operational decisions in departments like marketing or HR.
What is the relationship between strategy and tactics?
- Strategy is long-term and overarching
- tactics are short-to-medium term actions to implement strategy.
What are tactical decisions?
- Tactical decisions are made by middle managers to address specific objectives
- e.g. marketing campaigns or staff recruitment.
What is a corporate plan?
A corporate plan sets out medium to long-term objectives and strategies, based on resources, market analysis, and external factors.
What is the purpose of a corporate plan?
To provide strategic focus, coordinate divisions, allocate resources, and measure progress against objectives.
What is a SWOT analysis?
A framework for identifying a business’s internal Strengths and Weaknesses and external Opportunities and Threats.
Why use SWOT analysis?
To develop strategies that build on strengths and opportunities while minimising weaknesses and threats.
What are examples of internal strengths?
- Strong brand
- loyal customer base
- skilled workforce
- strong finances
- efficient supply chain.
What are examples of internal weaknesses?
- Poor cash flow
- low employee morale
- limited R&D
- outdated tech
- high turnover.
What are examples of external opportunities?
- Market growth
- tech advances
- competitor weakness
- regulatory change
- global expansion.
What are examples of external threats?
- New entrants
- economic downturn
- changing consumer tastes
- new laws
- rising costs.
How is a SWOT analysis used in planning?
It informs strategic decisions and helps identify areas for investment, change, or protection.
What is Porter’s Five Forces model?
A framework for analysing the competitiveness of an industry and identifying key external pressures.
What are the five forces in Porter’s model?
- Barriers to entry
- Supplier power
- Buyer power
- Competitive rivalry
- Threat of substitutes
What are barriers to entry?
- Obstacles preventing new firms entering a market
- such as capital costs, patents, or brand loyalty.
Why are barriers to entry important?
They protect existing firms from new competition and help maintain profits.
What increases supplier power?
- Few suppliers
- unique materials
- high switching costs
- suppliers with strong brands.
What reduces supplier power?
- Multiple suppliers
- low switching costs
- ability to substitute inputs.
What increases buyer power?
- Few large buyers
- bulk orders
- price sensitivity
- availability of alternatives.
