Podcast
Questions and Answers
What defines the long-term goals of a company?
What defines the long-term goals of a company?
Which of the following is NOT a component of a good SWOT analysis?
Which of the following is NOT a component of a good SWOT analysis?
What is a characteristic of a company that successfully implements a differentiation advantage?
What is a characteristic of a company that successfully implements a differentiation advantage?
In which category of a strategy map would you place customer value propositions?
In which category of a strategy map would you place customer value propositions?
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Which of the following is a common misconception about short-term objectives?
Which of the following is a common misconception about short-term objectives?
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What results when a company is 'stuck in the middle'?
What results when a company is 'stuck in the middle'?
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Which value strategy focuses on offering the best deal for money?
Which value strategy focuses on offering the best deal for money?
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What should not be a part of a good strategy?
What should not be a part of a good strategy?
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Which type of diversification involves creating a product that is entirely unconnected to the existing business?
Which type of diversification involves creating a product that is entirely unconnected to the existing business?
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What does business synergy imply about the combined businesses?
What does business synergy imply about the combined businesses?
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Which of the following best describes strategic drift?
Which of the following best describes strategic drift?
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What is the purpose of the product market matrix?
What is the purpose of the product market matrix?
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Which element does NOT belong in the DESTEP analysis framework?
Which element does NOT belong in the DESTEP analysis framework?
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What does STP stand for in marketing?
What does STP stand for in marketing?
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In a business context, what is meant by 'share of wallet'?
In a business context, what is meant by 'share of wallet'?
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Which of the following is an example of a qualifier for a business?
Which of the following is an example of a qualifier for a business?
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What defines a deliberate strategy in relation to an opportunistic strategy?
What defines a deliberate strategy in relation to an opportunistic strategy?
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Which of the following best describes continuity goals?
Which of the following best describes continuity goals?
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Which elements are included in the strategic triangle?
Which elements are included in the strategic triangle?
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What is a key difference between causal thinkers and effectual thinkers?
What is a key difference between causal thinkers and effectual thinkers?
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What does vertical alignment in strategy ensure?
What does vertical alignment in strategy ensure?
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What two factors determine a company's profit potential?
What two factors determine a company's profit potential?
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What is the purpose of the APIC circle?
What is the purpose of the APIC circle?
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What does horizontal alignment in strategy refer to?
What does horizontal alignment in strategy refer to?
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Study Notes
Strategic Management
- Companies have deliberate and opportunistic strategies. Opportunistic strategies are unplanned, while deliberate ones are planned. Having one can lead to missing out on other potential strategies.
- Strategic management involves positioning, defining a timeframe, and creating value for customers and stakeholders.
- Strategic goals include continuity (long-term survival), social (internal relationships and well-being), and societal (external relationships with the broader world).
- The strategic triangle has three elements affecting strategy: steering elements (what to do), resources (what is available), and environment (trends, opportunities).
- Hard information is quantifiable data (spreadsheets) and soft information is what people say, think, and feel.
- Managers tend to focus on the ultimate goal while entrepreneurs focus on available resources and opportunities.
Strategic Business Units (SBUs)
- SBUs are units within a business.
- Factors determining profit potential are market attractiveness and competitive advantage creation.
Diversification
- Companies can diversify in four ways: horizontal (new products for existing customers), vertical (forward/backward products), concentric (technology related products), and conglomerate (unrelated products).
- Business synergy creates more value than the sum of the individual businesses (2+2=5).
Strategic Drift and DESTEP
- Strategic drift involves a company's old ways of operating.
- DESTEP analysis includes demographic, economical, social, technological, environmental, and political factors.
Product Market Matrix and Porter's 5 Forces
- The product market matrix helps companies identify opportunities in different markets.
- Porter's 5 forces model examines market attractiveness through competitive analysis, including internal competition, new entrant possibility, substitutes, supplier power, and customer power.
- Share of wallet illustrates the importance and spending habits of a customer.
STP (Segmentation, Targeting, Positioning)
- Market segmentation divides the market into groups with similar characteristics.
- Targeting identifies the specific segments to focus on.
- Positioning defines the company's place in the market.
Qualifiers and Value Chain
- A qualifier is a minimum standard needed for a company to succeed.
- The value chain outlines how a company develops and delivers products. A good company has customer service as a qualifier.
SWOT Analysis and Ansoff Matrix
- A good SWOT analysis considers internal and external factors including strength, weaknesses, opportunities, and threats.
- The Ansoff matrix examines new or existing markets and products for strategic planning.
- Competitive advantages can include cost leadership and differentiation.
Value Strategies
- Value strategies include operational excellence (low cost), product leadership (innovation and higher cost), and customer intimacy (tailored products).
Business Model and Strategy Map
- A business model displays how a company produces, delivers, and receives value.
- The strategy map outlines financial, customer, internal processes, and innovation/learning aspects of the strategy.
Company Culture
- Company culture is a company's behavioural, value, reward system, and rituals. Company guiding principles should align with day to day actions.
- Organisational structures include clan-oriented (family-like), adhocracy-oriented (risk-taking), market-oriented (results-driven), and hierarchy-oriented (controlled and structured).
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Description
This quiz covers essential concepts of strategic management, including the differences between deliberate and opportunistic strategies. Learn about strategic goals, the strategic triangle, and the role of Strategic Business Units (SBUs) in a business framework. Test your knowledge on how these elements contribute to creating value for customers and stakeholders.
