Slides lecture 1

Questions and Answers

What is the primary purpose of strategy within an organization?

To deliver the purpose of the organisation (correct)

To ensure financial growth

To enhance employee satisfaction

To develop new products

Which of the following statements best describes a supplementary view of strategy?

To exploit technological advancements

To increase brand awareness

To ensure the survival of the organisation (correct)

To maintain market share

What encapsulates the core ideology of an organization?

Core values and core purpose (correct)

Marketing strategies and campaigns

Financial forecasting and analysis

Operational efficiency metrics

What are BHAGs in the context of organizational strategy?

Big, Hairy, Audacious Goals Signup and view all the answers

How is the 'vision' of an organization typically defined?

What the organization hopes to achieve in the long term Signup and view all the answers

Which of the following best explains the relationship between purpose and strategy?

Strategy is how the purpose is achieved Signup and view all the answers

What does a vivid description pertain to in organizational planning?

An inspiring illustration of the envisioned future Signup and view all the answers

What is the significance of core values in an organization's core ideology?

They guide decision-making and behavior within the organization Signup and view all the answers

What is the primary role of the mission in an organization?

To provide a tangible manifestation of the organization's purpose. Signup and view all the answers

What does the 'purpose' of an organization primarily explain?

The reason for the organization's existence. Signup and view all the answers

Which of the following best describes 'values' within an organization?

The behavioral non-negotiables guiding employee conduct. Signup and view all the answers

How is 'strategy' characterized in the context of the organizational framework?

The approach to deliver purpose and vision effectively. Signup and view all the answers

In the context of an organization, what does 'vision' define?

The desired future state of the organization. Signup and view all the answers

Which element of the organizational framework is most concerned with future aspirations?

Vision Signup and view all the answers

What is the primary focus of stakeholder mapping?

To prioritize levels of influence and resource control Signup and view all the answers

In the context of stakeholder mapping, which group is categorized as 'Keep Informed'?

Stakeholders with high influence but low power Signup and view all the answers

Which aspect does corporate governance primarily address?

The separation of ownership and management control Signup and view all the answers

What is NOT a factor considered in stakeholder mapping?

Employee turnover rates Signup and view all the answers

Which stakeholder category would require minimal effort to manage?

Minimal Effort Signup and view all the answers

What does 'Hierarchical power' refer to in stakeholder mapping?

The established ranks within an organization that dictate authority Signup and view all the answers

Which stakeholders are classified as 'Key Players'?

Those with high influence and high criticality Signup and view all the answers

What primarily drives the growing importance of corporate governance?

Increased public interest in business practices Signup and view all the answers

What does the Laissez-Faire stance towards corporate social responsibility primarily emphasize?

Maximizing profit while adhering to legal requirements Signup and view all the answers

What rationale is associated with the Forum for Shareholder Action stance on corporate social responsibility?

To engage shareholders in social and ethical initiatives Signup and view all the answers

Which corporate social responsibility stance seeks to integrate sustainability into business practices?

Enlightened Self-Interest Signup and view all the answers

Which of the following best describes the Shaper of Society stance on corporate social responsibility?

It drives social and market change as a core purpose. Signup and view all the answers

Which stance emphasizes the importance of profit as a foundational aspect for achieving corporate social responsibility?

Enlightened Self-Interest Signup and view all the answers

What is the primary goal of the Laissez-Faire stance in corporate social responsibility?

To ensure legal compliance while maximizing profit Signup and view all the answers

What is the primary purpose of the BCG Growth-Share Matrix?

To analyze relative market share and future potential Signup and view all the answers

Which of the following strategies is NOT included in corporate strategy?

Competitive strategy Signup and view all the answers

According to the BCG matrix, what should a company do with 'Dogs'?

Liquidate or divest to eliminate losses Signup and view all the answers

What describes the primary focus of business-level strategy?

Achieving competitive advantage in the market Signup and view all the answers

The strategies of market positioning and resource strategy are mainly components of which level of strategy?

Business strategy Signup and view all the answers

Which investment step is suggested for 'Cash Cows' based on the BCG matrix?

Milk cash for reinvestment in other areas Signup and view all the answers

What is a characteristic feature of functional strategies?

Addressing departmental objectives and operations Signup and view all the answers

Which strategy emphasizes the importance of geographical expansion?

International strategy Signup and view all the answers

What would be an appropriate action for a company with a 'Question Mark' in the BCG matrix?

Invest to see if it can grow into a Star Signup and view all the answers

In the context of corporate strategy, which of the following is typically assessed?

Overall portfolio management and resource allocation Signup and view all the answers

Study Notes

Purpose of Strategy

Primary purpose is to deliver the organization's core mission.
Aims to provide sustainable competitive advantage.
Ensures organizational survival over time.

Clarity of Purpose

Core Ideology encompasses Core Values and Core Purpose.
Envisioned Future includes 10-30 year Big Hairy Audacious Goals (BHAGs) and a vivid description of aspirations.

Purpose, Vision, Mission, Strategy

Purpose: Explains why the organization exists.
Vision: Describes what the future will look like.
Mission: Represents the tangible manifestation of purpose.
Strategy: Outlines how the organization will achieve its purpose.

Stars: High relative market share; invest due to potential growth.
Cash Cows: Low growth, high market share; milk for cash to reinvest.
Dogs: Low market share; either liquidate or divest.
"Question Marks": Invest or discard based on potential.

Naspers Growth Timeline

1985-1994: MNet launched; listed on JSE; Mweb founded.
1995-2010: Multichoice formed; significant acquisitions including mail.ru and OLX.
2012-2017: Introduction of Showmax; investments in global platforms like Flipkart and Delivery Hero.

Levels of Strategy

Corporate Strategy: Focuses on portfolio design, diversification, international strategy, and vertical integration.
Business Strategy: Encompasses market positioning, competitive strategy, and product strategy.
Functional Strategies: Include marketing, pricing, sales, R&D, technology, and support functions.

Stakeholder Mapping

Categorizes stakeholders based on power and interest regarding criticality:
- Key Players: High power and high interest.
- Keep Satisfied: High power but low interest.
- Keep Informed: Low power but high interest.
- Minimal Effort: Low power and low interest.

Corporate Governance

Defines structures concerned with the separation of ownership and management control.
Highlights the increasing importance of corporate governance roles.

Laissez-Faire: Minimal involvement; focus on legal compliance and profit.
Enlightened Self-Interest: Balances sound business sense with sustainable practices.
Forum for Shareholder Action: Engages in sustainability while addressing profit.
Shaper of Society: Actively drives social change alongside market influence.

Studying That Suits You

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Description

Explore the concept of mission as a tangible manifestation of purpose. This quiz will help assess your understanding of how mission statements reflect organizational goals and values. Dive into the critical components that define an effective mission.