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21 Cards in this Set
- Front
- Back
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Critical Success Factor |
Something which must go right if the objectives and goals are to be achieved. |
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SMART |
S - Specific M - Measurable A - Achievable R - Realistic T - Timely |
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PRIME |
P - Planning R - Responsibility I - Integration M - Motivation E - Evaluation |
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Drunkers 5 Questions |
- What is our Mission - Who is our Customer - What is our Plan - What are our Resources - What does the Customer Value |
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Mintzburg's Five P's of Strategy |
Plan -> Path from here to there Pattern -> Consistent behaviour over time Ploy -> A manoeuvre in a competitive business game Position -> Where a company places itself in an environmental/Market Perspective -> Company strategy is similar to individuals personality. |
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Levels of Strategy |
Corporate strategy Business strategy Operational strategy |
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Corporate Strategy |
What business is firm in, what business should it be in. Activities need to be matched to firms environment, resource capabilities and the values and expectations of stakeholders. |
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Business Strategy |
Looks at how each SBU attempts to achieve it's mission. What approach should be taken to gain competitive advantage. |
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Operational Strategy |
Look at how each function supports corporate and business strategy. |
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Rational Approach to Strategy Formulation. |
1. Determine the mission of the organisation. 2. Set corporate objectives. 3. Carry out corporate appraisal. 4. Identify and evaluate strategy options. 5. Evaluate each in detail for is fit to the mission. 6. Implement chosen strategy. 7. Review and control. |
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Stage One: Mission |
Mission: sets long term framework and trajectory for the business. Vision: this describes how a company would look if it achieved it's mission. Goals: Mintzberg. The intention behind the organisations decisions or actions. Objectives: goals expressed in a quantitative form. |
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Stage 3 - Corporate Appraisal. |
This provides the framework to summarise the key outputs from the internal and external environment (SWOT) S/W - Internal - resources audit&Porters Value Chain. O/T - PEST(EL) & Porters Five Forces. |
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Stage 4 - Generate Strategic Options |
This is the process of choosing the alternative strategic options generated by the SWOT analysis. -> what basis should the organisation compete. -> what are the alternative direction available and what products and markets should the organisation entre or leave. -> what alternative methods are available to achieve the chosen direction. |
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Ansoff Model |
MARKET PENETRATION - this is where the organisation seeks to maintain or increase it's share of existing markets with existing products. PRODUCT DEVELOPMENT - strategies are based on launching new products or making product enhancements which are offered to the existing market. MARKET DEVELOPMENT - strategies are based on finding new markets for existing products. DIVERSIFICATION - strategies are based on launching new products into new markets and is the most risky option. |
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Stage 6 - Strategic Methods |
INTERNAL DEVELOPMENT - this is where the organisation uses it's own internal resources to pursue chosen strategy. TAKE-OVER/A&M - acquire resource by taking over or merging with another organisation. STRATEGIC ALLIANCE - aim of increasing exposure to potential customers or gaining access to technology. |
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Stage 7 - Strategic Implementation |
TACTICAL - programs and decisions are medium term policy designed to implement some of the key elements of the strategy. (Project management and appraisal needed). OPERATIONAL - programs and decisions cover routine day to day matters. (Conventional budgetary control is an important factor). |
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Strategic Planning (Johnson, Scholes and Whittington) |
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Stage 8 - Review and Control |
This is a continual process of reviewing both the implementation and the overall continuing suitability of the strategy. (1) does the performance of the strategy still put the business on course for reaching it's strategic objectives? (2) are the forecasts for the environment on which the strategy was based still accurate? |
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Stakeholder Analysis |
Stakeholder Power - this is the view that stakeholders can affect the success of a strategy. Organisational Legitimacy - more radical view that all firms must be good citizens. |
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Stakeholder Analysis - Scholes |
Low interest - Low Power: Direction. Open to influence. High interest - Low Power: Education Need to convince opponents to the strategy that plans are justified. Low interest - High Power: Intervention. Need to keep them satisfied to stop them gaining interest. High interest - High power: Participation Are the major drivers of change and could stop plans if not satisfied. |
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Shareholder Conflict - Cyert + March |
Satisfying - by negotiations that keep most, but not all, stakeholders happy. Sequential of Power - by giving stakeholders turns to realise their power. Side Payments - where compensation is given to make up for not addressing a particular stakeholder objective. Exercise of Power - where deadlock is overcome by powerful figures through their preferred strategic option. |
