Podcast
Questions and Answers
Which statement best describes the relationship between a plan and a strategy?
Which statement best describes the relationship between a plan and a strategy?
- A strategy and a plan are the same thing and the terms can be used interchangeably.
- A plan is NOT a strategy. Strategy involves making strategic decisions and plan will be a follow up step to implement that decision. (correct)
- A strategy is a detailed plan that outlines specific actions and timelines.
- A plan is the overarching vision, while a strategy is the detailed steps to achieve it.
Which of the following decisions would be considered a strategic decision for a university?
Which of the following decisions would be considered a strategic decision for a university?
- Deciding to give a yearly pay rise to all staff.
- Launching a new undergraduate program in artificial intelligence. (correct)
- Changing the price of the university merchandise.
- Employing more employees in the cleaning department.
What does 'strategic change' fundamentally imply for a business?
What does 'strategic change' fundamentally imply for a business?
- Minor updates to marketing materials.
- Adjustments to employee break times.
- Incremental adjustments to daily operations.
- Fundamentally changing the core elements of the current business model. (correct)
At which organizational level does strategic change occur?
At which organizational level does strategic change occur?
What is the role of Strategic Business Units (SBUs) within an organization like P&G?
What is the role of Strategic Business Units (SBUs) within an organization like P&G?
Which of the following best represents a corporate-level strategy?
Which of the following best represents a corporate-level strategy?
A company decides to consolidate its existing business and wait and see, especially when the market is uncertain. Which type of corporate-level strategy is the company undertaking?
A company decides to consolidate its existing business and wait and see, especially when the market is uncertain. Which type of corporate-level strategy is the company undertaking?
What is the primary focus of competitive strategy?
What is the primary focus of competitive strategy?
A company implements a new CRM (Customer Relationship Management) system to improve customer service. This is an example of strategy at which level?
A company implements a new CRM (Customer Relationship Management) system to improve customer service. This is an example of strategy at which level?
Which of the following is an example of a question answered by the 'Concern for survival, growth, and profitability' component of a mission statement?
Which of the following is an example of a question answered by the 'Concern for survival, growth, and profitability' component of a mission statement?
Why is it important for a company to conduct an internal analysis?
Why is it important for a company to conduct an internal analysis?
Porter's Five Forces is a framework used in what type of analysis?
Porter's Five Forces is a framework used in what type of analysis?
Within Porter's Five Forces, which force considers the likelihood of new companies entering the industry?
Within Porter's Five Forces, which force considers the likelihood of new companies entering the industry?
What does the 'R' in VRIO analysis stand for?
What does the 'R' in VRIO analysis stand for?
Which component of the VRIO framework asks whether a firm has an organizational structure to capture value from its resources and capabilities?
Which component of the VRIO framework asks whether a firm has an organizational structure to capture value from its resources and capabilities?
What are the three components of startegic management process?
What are the three components of startegic management process?
What is the significance of the 'O' (Opportunities) in a SWOT analysis?
What is the significance of the 'O' (Opportunities) in a SWOT analysis?
Why if strategy formulation important for companies?
Why if strategy formulation important for companies?
What is the role of external analysis in strategic management?
What is the role of external analysis in strategic management?
To be useful, a basis for strategic change should be:
To be useful, a basis for strategic change should be:
What is the most accurate description of ansoff matrix?
What is the most accurate description of ansoff matrix?
How can PESTLE analysis assist organizations in their strategic decision-making?
How can PESTLE analysis assist organizations in their strategic decision-making?
Which of the following questions aligns with the 'Customers' component of a firm's mission statement?
Which of the following questions aligns with the 'Customers' component of a firm's mission statement?
Why is it crucial for firms to analyze their resources and capabilities?
Why is it crucial for firms to analyze their resources and capabilities?
When a company decides to outsource some of its operations to another country, which strategic-management level is that decision related to?
When a company decides to outsource some of its operations to another country, which strategic-management level is that decision related to?
A car manufacturer sources tires from a single supplier. If the supplier raises prices significantly, which of Porter's Five Forces is most affected?
A car manufacturer sources tires from a single supplier. If the supplier raises prices significantly, which of Porter's Five Forces is most affected?
A technology company launches a new product that is so innovative that consumers are willing to pay a premium for it. According to the VRIO framework, what is the most relevant consideration?
A technology company launches a new product that is so innovative that consumers are willing to pay a premium for it. According to the VRIO framework, what is the most relevant consideration?
In which scenario would stability strategies be most appropriate for a company?
In which scenario would stability strategies be most appropriate for a company?
Why might a company choose a divestment strategy?
Why might a company choose a divestment strategy?
Which of the following is the best example of a strategic decision?
Which of the following is the best example of a strategic decision?
Flashcards
Strategic Decisions
Strategic Decisions
The process of making decisions and choices that influence the direction of an organization.
Not all decisions are strategic
Not all decisions are strategic
Not every decision is strategic. Some choices don't impact the entire organization's direction.
Setting the path
Setting the path
The activity of setting the path or a new path for the organization.
Strategy vs. Plan
Strategy vs. Plan
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Strategic Change
Strategic Change
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Fundamentally changing
Fundamentally changing
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Corporate-Level Strategy
Corporate-Level Strategy
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Competitive Strategy
Competitive Strategy
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Functional-Level Strategy
Functional-Level Strategy
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SWOT Analysis
SWOT Analysis
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PESTLE
PESTLE
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Strategic Management Analysis
Strategic Management Analysis
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Internal Analysis
Internal Analysis
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External Analysis
External Analysis
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Porter's Five Forces
Porter's Five Forces
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Reformulation
Reformulation
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Study Notes
- Lecture 3 explores strategy and strategic decision-making within principles of management.
Learning Outcomes
- Understanding how to successfully set or adjust a new path for an organization.
- Identifying the management decisions linked to strategy, and distinguishing them from those that aren't.
- Defining the role of management, including different types of managers, in strategic change.
- Outlining the benefits of strategic analysis for managers in effectively carrying out strategic management.
Strategic Management Study
- Studying strategic management involves analyzing the decisions and choices that managers make which are strategic in nature.
- This implies some decisions, choices, and actions are strategic, while others are not.
- A plan is implementing a strategic decision, not inherently a strategy.
Strategic Decisions Examples
- Strategic decisions include:
- A decision to outsource production of products rather than manufacture them
- Deciding to launch new undergraduate programs
- Opening a campus in Malaysia
- Non-strategic decisions include:
- Change the price of the product
- Employ more employees
- Giving a pay rise to all staff
Strategic Management Process:
- A strategic management process involves understanding what factors trigger the need for strategic change
- The change required can also mean deciding to do nothing for now and remaining in a state of observation.
Strategic Change Defined:
- Strategic change fundamentally alters the core elements of the current business model or even the business model itself.
- Strategic change may also affect a core aspect of a business model.
- Strategic change happens at the organizational level through corporate, competitive and functional level strategies.
Corporate Level Strategy:
- Corporate-level strategy pertains to the overall organization.
- Google is part of Alphabet, which includes Google search, Android, and other business units.
- Some companies structured similarly include Meta, owning WhatsApp, Instagram, and Facebook
- Corporate strategy involves deciding which industries or businesses an organization will compete in.
- An organization could decide to enter or exit a sector as a strategic choice.
Corporate Level Strategy: Decisions and Strategies
- Specific decisions at the corporate level include:
- Defining growth strategies
- Entering new markets or industries
- Implementing stability strategies in times of uncertainty
- Deciding on divestment strategies by leaving certain industries or markets.
Competitive Strategy:
- Competitive strategy is usually framed at the business unit level
- Each business unit competes within a specific industry with varying levels of competition and advantages.
- Internationalization strategies can complicate this, as competitiveness varies across markets.
- The unit-level managers have to take decisions on sustaining competitive advantages.
Functional Level Strategy:
- Functional-level strategy looks at the functions supporting activities such as the different business units.
- Departments such as finance, marketing, and human resources support the core business models.
- Functional strategies include software changes for staff management and social media marketing.
Strategic Decision Making Tools/Frameworks
- SWOT
- PESTLE
- BCG Matrix
- ANSOFF
- Five Forces
- Blue Ocean Strategy Framework
Strategic Management by Robbins and Coulter (2018)
- The framework involves internal and external analysis informing an analysis phase, resulting to a strategic management process.
Internal Analysis Considerations
- Internal analysis is used to assess a company's resources, capabilities, and performance.
- Analysis is different than an investigation where some incident has happened
- It occurs within each business unit.
- Organizations can own different business units, so analysis should occur across all units.
- SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis which is generally for internal assessment.
- SWOT analysis identifies current strengths, weaknesses, opportunities, and threats.
- A new manager or CEO may initiate a thorough analysis to understand the organization's needs.
Micro Environment of the Firm
- Porter’s Five Forces, including:
- Supplier Power
- Threat of New Entrants
- Buyer Power
- Threat of substitutes
- Include an analysis of the state of competition or industry rivalry, presented visually usually
Resources and Capabilities Analysis via VRIO Framework
- The VRIO framework assesses:
- Value: Do resources/capabilities generate value for the firm?
- Rare: Are resources rare or easily accessible to competitors?
- Imitate: Can others easily imitate our capabilities?
- Organization: Is the organizational structure capable of capturing value?
External Analysis
- External analysis considers factors that can affect the organization.
- Tools for external analysis include:
- PESTLE
- Five Forces
Strategic Formulation
- Reformulation involves fundamentally changing the core business proposition and model.
- Strategy formulation articulates what needs to be done with solid justification.
- The basis for change should be strongly supported.
- The process involves setting overall goals, milestones, objectives, and measuring progress.
- Strategic analysis is a process where the current position of the company, its direction and its future strategic options are considered.
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