STRATEGIC MANAGEMENT

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What is strategy?
A plan of action designed to deliver a long-term aim
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What is a prescriptive strategy?
A strategy that focuses on the purpose of an organisation and the plan used to deliver that purpose. Similar to a military strategy
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Three drawbacks of a prescriptive strategy?
1) Can't cope in an uncertain environment. 2) Largely ignores innovation. 3) Tends to replicate existing market opportunities
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What is an emergent strategy?
A strategy that evolves as plans change
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Three drawbacks of an emergent strategy?
1) Can companies really 'potter along' without objectives and direction? 2) Management control is easier with overview and a long-term plan. 3) Rational decisions based on evidence have a higher chance of success
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List two points from Frigo and Litman in 2001 as being crucial to the development of strategy?
1) Communication with the shop is key 2) Quality decision making is key.
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What is strategic management?
Strategic management deals with the prescriptive and emergent initiatives taken by general managers on behalf of company owners and uses resources to enhance performance on the external environment.
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Why is strategic management important?
1) It involves the whole firm. 2) survival is the minimal objective 3) the creation of value added is the maximum objective 4) it is central to the development of a competitive advantage.
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What are the three elements to any strategic decision?
1) Context (the environment in which operating) 2) Content (the main actions of the proposed strategy 3) Process (how is the strategy achieved and developed)
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What are porters 5 forces?
1) Industry competitiors 2) Customers 3) Suppliers 4) Substitutes 5) Potential New Entrants
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List 3 criticisms of Porters 5 forces:
1) Has no scope or role for Human Resource Management, 2) Static framework in a changing environment 3) The customer is no more important than the other factors
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What are Lynches 4 links?
1) Government links and networks 2) Informal cooperative links 3) formal cooperative links 4) complementors
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What is a vision?
A vision is a challenging and imaginative picture of the future of an organisation
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What is the difference between a vision and a goal?
A goal is more specific and more immediate.
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What is corporate governance?
The power and influence of stakeholders to control the strategic direction of an organisation.
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What is Corporate Social Responsibility?
The standards and conduct a company sets within the organisation and externally in the environment.
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List 3 reasons why ethical conduct and CSR are important to an organisation?
1) Judged important e.g. Human Rights, 2) Professionalisation of the business 3) self interest, risk of poor PR
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What are the four elements of Porters generic strategy model?
(Based on competitive advantage): cost leadership, differentiation. (Based on competitive scope): Broad target, narrow target.
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What is a low cost strategy?
building and maintaining low costs, keeping labor costs low and generally keeping all costs as low as possible to give an advantage over the competitor
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What is differentiated strategy?
differentiated strategy is where the products of an organisation meet the needs of the customer better than others and give competitive advantage
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what assumption did porter make with his generic strategy model?
that firms could become stuck in the middle
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list two matrices organisations may chose to use when considering strategic market opportunities
market options matrix, expansion method matrix
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what three criterian does KAY suggest when developing research based strategic model?
architecture, innovative capability and reputation
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what are the two definitions of corporate strategy?
when a business might change from one business to another, the role of HQ in directing and influencing strategy
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what are the three degrees of diversification
close related, distance related, unrelated
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What 4 classifications of products does the boston matrix identify
star, problem child, cash cow, dog
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what are the two measures the boston matrix utilises?
Market share, market growth
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what are the two types of measures the Royal Dutch/Shell directional policy matrix?
industry attractiveness, business competitive position
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Why might the royal dutch/directional policy be preferred in anorganisation?
industry attractiveness includes market growth and market share, business competitive positions use many other things as well as market share e.g. quality, reputation, knowledge
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give two negatives to using matrices as strategic management tools
doesn't offer guidance on which to use, assumes competitors will do nothing
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difference between a merger and alliance?
acquisitions include mergers and takeovers with new roles in corporate structures,
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what is a joint venture?
a enterprise being over taken jointly by two or more parties who retain their distinct identity
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what are Tichy's four courses of strategic change?
Environment, business relationship, technology, people
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what do prescriptive approaches emphasise?
a sudden change, revolution
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what do emergent approaches emphasise?
evolution, gradual change
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what is KANTERS three stage theory to managing change
Change identity, co-ordinate issues as company goes through life-cycle, control political aspects
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What is LEWINS three stage approach to managing change?
unfreeze current attitudes, move to new level, freeze attitudes at new level
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Is Pettigrew and Whips approach prescriptive or emergent?
emergent, no new sudden change projected
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What do Krupp and Howland suggest as the six elements of strategic thinking?
ACIDAL (Anticipate, Challenge, Interpret, Decide, Align, Learn)
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What do Bennis and Nanis suggest as leadership compentences?
Vision, passion, determination, trust, knowledge, responsiveness, creativity
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What are the three main theories of leadership?
Trait, Style, Contingency
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Card 2

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What is a prescriptive strategy?

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A strategy that focuses on the purpose of an organisation and the plan used to deliver that purpose. Similar to a military strategy

Card 3

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Three drawbacks of a prescriptive strategy?

Back

Preview of the front of card 3

Card 4

Front

What is an emergent strategy?

Back

Preview of the front of card 4

Card 5

Front

Three drawbacks of an emergent strategy?

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Preview of the front of card 5
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