Strategie

Front 1

How can we gain understanding of the topic?

Back 1

1) Examining the diversity of insights

2) Acknowledging that there is no simple answer to the question of what Strategy is

Front 2

What makes a Plurality of Perspectives?

Back 2

Different interpretations, guided by different perspectives and interests, are hampering clear understanding and discourse

Front 3

Wicked Problems

What factors make a simple problem?

Back 3

LOW Plurality of Perspectives

HIGH Transparency

Front 4

Wicked Problems

What factors make a clearly structured problem?

Back 4

HIGH Plurality of Perspectives

HIGH Transparency

Front 5

Wicked Problems

What factors make a Diffuse Problem?

Back 5

LOW Plurality of Perspectives

LOW Transparency

Front 6

Wicked Problems

What factors make an Unsolvable Problem?

List five extra factors

Back 6

HIGH Plurality of Perspectives

LOW Transparency

1) Across Borders (problem stretches amongst more than one organisation/actor etc)

2) Ambiguity (there are diff perspectives and diff interpretations)

3) Conflicts (between actors due to differences in interests and perceptions)

4) Interconnectivity (all issues connected)

5) Unsolvable (No right or wrong answer, need permanent management)

Front 7

Wat is de:

-Mission?

-Objective?

-Vision?

-Strategy?

Back 7

Mission: Why the company exists

Objective: Short term aim

Vision: Long term aim

Strategy: How to achieve the vision

Front 8

What are the two ways of viewing Strategic questions?

How do they work? How do they approach it?

Back 8

Tools driven approach

Understanding each tool comes first, then combining their use to solve the problem comes later.

Problems driven approach

Understanding the problem comes first, and then you look at which tool is most appropriate.

Front 9

Draw the dimensions of strategy diagram including all four labels.

Back 9

Big circle with strategy context in it.

On the left, organisational purpose, then an arrow with strategy process in it, and then on the right strategy context.

Front 10

What is Strategy Content?

Back 10

The combined choices and decisions that lead a company into the future. Basically the result of strategy activities.

Functional, Business, Corporate, Network

Front 11

What is Strategy Process? What are the three steps in Strategy Process?

Back 11

The flow of strategy activities - how who and when of strategy! Innovation > Formation > Change

Front 12

What is Strategy Context? Name four different possible contexts

Back 12

Strategy context are the conditions surrounding strategy activities.

From big to small:

International Context>

>Industry Context>

>Organisational Context>

>Strategist

Front 13

Wat zijn de vier subbranches van Strategy Content? Waar ligt de Tension?

Back 13

1) Business Level Strategy (Markets-Resources)

2) Corporate Level Strategy (Responsiveness-Synergy)

3) Network Level Strategy (Competition-Cooperation)

4) Functional Level Strategy

Front 14

Wat zijn de drie subbranches van Strategy Process? Waar ligt de Tension?

Back 14

1) Strategy Formation (Deliberateness-Emergence)

2) Strategic Change (Revolution-Evolution)

3) Strategic Innovation (Exploitation-Exploration)

Front 15

Wat zijn de drie subbranches van Strategy Context? Waar ligt de Tension?

Back 15

1) Industry Context (Compliance-Choice)

2) Organisational Context (Control-Chaos)

3) International Context (Globalisation-Localisation)

Front 16

How do you deal with Paradoxes? (6)

Back 16

1) Navigating (One perspective at a time)

2) Parallel Processing (Several perspectives in different internal of external organisational units)

3) Balancing (create a company specific balance from both perspectives)

4) Juxtaposing (accept the conflict and simultaneously manage both)

5) Resolving (Balance between perspectives by exploiting the tension)

6) Embracing (Embrace and use the tension as a source of creativity)

Front 17

What is the strategic reasoning process?

What are the four stages and do they belong to defining or solving?

Back 17

A set of circumstances requiring a reconsideration of the current course of action to profit from opportunities or to respond to threats.

1) Identifying (Defining)

2) Diagnosing (Defining)

3) Conceiving (Solving)

4) Realising (Solving)

Front 18

What are demands for logical thinking? What does it do in the defining and solving stage?

Back 18

1) Rigorous

2) Precise

3) Consistent

Defining stage: Avoids emotional interpretations

Solving stage: Avoids solutions based on fantasy instead of feasability

Front 19

What are demands for intuitive thinking? What does it do in the defining and solving stage?

Back 19

1) Comprehensive

2) Informal

3) Fast

Defining stage: Prevents you from locking into patterns of old thinking

Solving stage: New strategies not analysed into existence

Front 20

Why would you use Analytic Reasoning? (3)

Back 20

1) Strategic reasoning is predominantly "logical" - scientific

2) Requires well developed analytical skills

3) Argues that emotions and intuition have a small place in the strategic reasoning process

Front 21

Why would you use Holistic Reasoning? (5)

Back 21

1) Logic is important but strategic problems are open to interpretation from a limitless variety of angles

2) No fixed set of solutions exist

3) Strategists must be able to use their intuition to imagine previously unknown solutions

4) Strategists need to trust the unconscious mind

5) Heavy emphasis on rationality can frustrate the generation with a novel of understanding

Front 22

How can analytic & holistic reasoning be used to manage the paradox? (3)

Back 22

1) Navigating - Build in mental time outs to allow creative ideas to incubate

2) Parallel Processing - Process logical and intuitive thinking in parallel

3) Embracing - bring analytic and holistic thinkers together in one team to capture the advantages of both

Front 23

What three factors make up a business model?

Back 23

1) Resource base (value of assets)

2) Activity system (value chain)

3) Product offering (value preposition)

Front 24

How do you position a business?

What four approaches exist?

Back 24

You look at your market offerings and product offerings.

1) Niche focus

2) Product focus

3) Segment focus

4) Broad scope

Front 25

How could you segment buyer attributes/demographics? (3)

Back 25

1) Geography

2) Age

3) Education

Front 26

How could you segment buying criteria/needs? (3)

Back 26

1) Price

2) Purpose

3) Style

Front 27

How could you segment buyer behaviour/actions? (3)

Back 27

1) Adoption

2) Purchase location

3) Use

Front 28

How does a business create value?

Back 28

Look at the diagram in Week Four Slides Pg 4

Front 29

What are the two types of resources a business has? What comes under each?

Back 29

Tangible Resources

-Land

-Buildings

-Materials

-Money

Intangible

relational

-Relationships

-Reputation

competences

-Knowledge

-Capabilities

-Attitude

Front 30

What is an outside in perspective? and what is an inside out perspective?

Back 30

Outside in: Firms take their environment as the starting point for their strategy.

Inside out: Firms take their strengths as the starting point for their strategy.

Front 31

How can the paradox be measured using inside out and outside in business level strategies?

Back 31

1) Juxtaposing - creating and maintaining a dynamic equilibrium between markets and resources

2) Parallel Processing - company separates demand over different organisational units

Front 32

What is corporate composition?

Back 32

Where the firm wants to have which level of involvement - where to allocate resources, build up activities and achieve market sales.

Front 33

What is corporate scope

Back 33

The more business components, chosen the broader the scope of the corporation

Front 34

What is corporate distribution?

Back 34

The composition depends on the relative size of the activities in each business area.

Front 35

What is a portfolio matrix?

Back 35

A common way to depict the corporate composition. It plots all business on a graph and each business activity is represented as a bubble, the size of which represents its revenue.

Front 36

What are the three types of corporate management?

Back 36

1) Centralisation - Bring resources and activities physically together into one organisational unit.

2) Coordination - Achieving integration by coordinating split business units.

3) Standardisation - Similar resources, standardised activities and common product features without the need to physically centralise or continuously coordinate.

Front 37

What are three things to consider when diversifying into new business areas?

Back 37

1) Attractiveness - Opportunities available to the firm and its competitive forces need to be judged

2) Cost of Entry - Must not capitalise all the future profit

3) Better off - only enter new businesses if they can create synergy, needs to gain competitive advantage from from its link with the corporation

Front 38

How do you achieve synergy between resource bases in diversified businesses?

Back 38

You leverage resources.

Front 39

How do you achieve synergy between Activity systems in diversified businesses?

Back 39

You align positions. Improve your bargaining and competitive positions.

Front 40

How do you achieve synergy between product offerings in diversified businesses?

Back 40

You integrate value chain activities. Share and link value adding activities.

Front 41

Why implement vertical integration of activities? Why create synergy? (5)

Back 41

1) Operational coordination

2) Avoidance of transaction costs

3) Increased bargaining power

4) Learning curve advantages

5) Implementing system wide changes

Front 42

What do you get when a company lacks responsiveness? (5)

Back 42

1) High governance costs

2) Slower decision making

3) Strategy incongruence

4) Dysfunctional control

5) Dulled incentives

Front 43

What are five characteristics of Portfolio organisations ?

Back 43

1) Responsiveness is emphasised

2) Financial synergies are the only emphasised synergies

3) Diversification through acquisition is well suited for the portfolio approach

4) SBU's are responsible for their own competitive strategy

5) Corporate centres should be modest.

Front 44

What are three characteristics of Integrated organisations?

Back 44

1) Growth through acquisition is difficult

2) All business units should tap into and contribute to the company's core competences

3) Should be a tightly knit team of business units grouped around a common core.

Front 45

How can the responsiveness & synergy paradox be managed?

Back 45

1) Navigating

2) Balancing

3) Resolving

Front 46

What are relational actors in inter organisational relationships? (4)

What else needs to be considered? (4)

Back 46

1) Upstream - vertical supplier relations

2) Downstream - vertical buyer relations

3) Direct - horizontal industry relations

4) Indirect - horizontal industry outsider relations

1) Socio-cultural actors

2) Economic actors

3) Political-legal actors

4) Technological actors

Front 47

What are three objectives of inter-organisational relationships?

Back 47

1) Towards leveraging resources

2) Towards integrating activities

3) Towards aligning positions

Front 48

What are the four specific types of inter firm relationships ?

Back 48

1) Mutual independence

2) Unbalanced independence

3) Mutual dependence

4) Unbalanced dependence

Front 49

What are five types of relational arrangements?

Back 49

1) Bilateral

2) Multilateral

3) Non contractual

4) Contractual

5) Equity-based

Front 50

What are four characteristics of the discrete organisation perspective?

Back 50

1) Companies viewed as independent entities competing in a hostile market environment. Motivated by aggressive self interest.

2) Companies strengthen competitive positions in relation to external forces

3) Collaboration is bad for the company's long term health.

4) Companies should strive for strategic self sufficiency

Front 51

How do you manage the paradox of competition and cooperation? (3)

Back 51

1) Navigating

2) Parallel Processing

3) Juxtaposing

Front 52

What are the three types of roles to consider during strategy formation?

Back 52

1) Top vs. Middle vs. Bottom roles

2) Line vs. staff roles

3) Internal vs. external roles

Front 53

What are five demands for deliberate strategising?

Back 53

1) Direction - plans give a sense of direction

2) Commitment - this way a clear position can be made within their environment

3) Coordination - all strategic initiatives are brought into a single cohesive pattern

4) Optimisation - plans facilitate optimal resource allocation

5) Programming - plans allow activities to be programmed and controlled

Front 54

When does a strategy emerge? What five factors are needed?

Back 54

A strategy emerges when it comes into being along the way, gradually shaped during an iterative process of thinking and doing.

1) Opportunism (grab unforeseen opportunities)

2) Flexibility

3) Learning (by experimentation)

4) Entrepreneurship

5) Support

Front 55

What are five characteristics of the "strategic planning perspective" ?

Back 55

1) Planned and executed. Think before you act.

2) Purpose is to give direction

3) Allows formalisation and differentiation of tasks.

4) Encourages long term thinking and commitment.

5) Plans always based on assumptions.

Front 56

What are four characteristics of the "strategic instrumentalism perspective" ?

Back 56

1) Strategy is about flexibly shaping the course of action

2) Routine activities are fine for planning but not for non-routine activities

3) Strategy formation is an innovation process.

4) Planning is inappropriate when dealing with wicked problems.

Front 57

How do you manage the deliberateness versus emergence paradox? (2)

Back 57

1) Balancing

2) Juxtaposing

Front 58

What are three dimensions of Globalisation?

Back 58

1) Worldwide scope - international expansion on a worldwide scale

2) Worldwide similarity - process of declining international variety

3) Worldwide integration - process of increasing international interconnectedness

Front 59

What are three levels of Globalisation?

Back 59

1) Globalisation of companies - micro level, extent to which firms have a global strategy, structure, culture etc.

2) Globalisation of businesses - meso level, globalising markets is about the growing similarity of worldwide customer demand and worldwide product flow.

3) Globalisation of economies - macro level - world's economies are experiencing a convergence trend.

Front 60

Name the four generic organisational models for international configuration

Back 60

1) Decentralised federation - each country subsidiary largely self sufficient and autonomous

2) Coordinated federation - country subsidiaries have a closer relationship with the headquarters in the home country

3) Centralised hub - all main activities carried out in the home country

4) Integrated network - country subsidiaries have a close relationship with the international headquarters but also with each other

Front 61

What are two perspectives to look at globalisation?

Back 61

1) Global divergence perspective - the world is looking more and more the same

2) International diversity perspective - differences remain culturally, politically, linguistically, in education systems etc.

Front 62

How do you manage the paradox of globalisation and localisation ? (4)

Back 62

1) Navigating

2) Resolving

3) Balancing

4) Embracing

Front 63

What are four advantages firms seek abroad ?

Back 63

1) Natural resources are more plentiful

2) Market seeking

3) Efficiency seeking

4) Strategic asset seeking

Front 64

What are four elements of a corporate mission and what does each mean?

Back 64

1) Organisational beliefs - what is driving ideas and assumptions?

2) Organisational purpose - why does the firm exist?

3)

Front 65

What are functions of mission and vision? (3)

Back 65

1) Direction - points the organisation in a certain direction

2) Legitimisation - conveys to stakeholders

3) Motivation - inspires individuals to work together for a common cause

Front 66

What are characteristics of the paradox of economic profitability & social responsibility

Back 66

Economic

1) Profitability is necessary for survival

2) Profitability raises new capital which increases competitiveness

Social

1) Trust

2) Where there is trust, people will commit themselves

3) Image

Front 67

What are some characteristics of shareholder value perspectives? (4)

Back 67

1) Companies belong to their owners

2) Purpose of a company is to create economic value

3) Non executive members of the board of directors check the executives to ensure profitability

4) Interest of shareholders to treat stakeholders well

Front 68

What are some characteristics of stakeholders value perspective? (5)

Back 68

1) Companies are a joint venture between various stakeholders

2) Profitability balanced against demands of other partners

3) Moral obligation to consider interests of all joint venture partners
4) Cooperation better than competition

5) Responsible for all parties affected by the organisation's activities

Front 69

How do you manage the paradox? (1)

Back 69

Resolving