Podcast
Questions and Answers
Which of the following is part of the traditional strategic planning process?
Which of the following is part of the traditional strategic planning process?
Emergent strategies can only be planned in advance.
Emergent strategies can only be planned in advance.
False
What is the purpose of a SWOT analysis in strategic planning?
What is the purpose of a SWOT analysis in strategic planning?
To identify strengths, weaknesses, opportunities, and threats related to the organization.
The __________ approach involves a continuous timeframe in strategic planning.
The __________ approach involves a continuous timeframe in strategic planning.
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Match the types of strategies with their definitions:
Match the types of strategies with their definitions:
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In which strategic approach is documentation characterized as 'light and informal'?
In which strategic approach is documentation characterized as 'light and informal'?
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Strategic planning has shifted entirely to a bottom-up approach.
Strategic planning has shifted entirely to a bottom-up approach.
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What is one impact of traditional strategic planning on employee motivation?
What is one impact of traditional strategic planning on employee motivation?
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Which factor contributes to increased industry rivalry?
Which factor contributes to increased industry rivalry?
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In the development phase of the industry life cycle, rivalry among competitors is typically high.
In the development phase of the industry life cycle, rivalry among competitors is typically high.
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What is the competitive advantage described by the VRIO model?
What is the competitive advantage described by the VRIO model?
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In the shake-out stage of the industry life cycle, rivalry ______ as some companies may exit the market.
In the shake-out stage of the industry life cycle, rivalry ______ as some companies may exit the market.
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What does the 'Value' component of the VRIO model assess?
What does the 'Value' component of the VRIO model assess?
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Match the industry life cycle stages with their corresponding characteristics:
Match the industry life cycle stages with their corresponding characteristics:
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Competitors in a strategic group are those that follow similar strategies.
Competitors in a strategic group are those that follow similar strategies.
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Resources refer to what we ______, while capabilities refer to what we ______.
Resources refer to what we ______, while capabilities refer to what we ______.
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Which of the following factors makes a resource or capability costly for competitors to imitate?
Which of the following factors makes a resource or capability costly for competitors to imitate?
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A well-defined mission statement provides clarity about the desired future state of the organization.
A well-defined mission statement provides clarity about the desired future state of the organization.
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What are the two fundamental means of gaining competitive advantage according to Porter?
What are the two fundamental means of gaining competitive advantage according to Porter?
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The capacity of a firm to leverage human capital effectively is tied to its ___ systems and processes.
The capacity of a firm to leverage human capital effectively is tied to its ___ systems and processes.
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Match the following components of organizational culture with their descriptions:
Match the following components of organizational culture with their descriptions:
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What is the primary characteristic of Cost Leadership?
What is the primary characteristic of Cost Leadership?
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Cultural paradigms and behaviors do not affect a company's ability to change its strategy.
Cultural paradigms and behaviors do not affect a company's ability to change its strategy.
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Identify one key component that determines if a firm can capture the value of a resource.
Identify one key component that determines if a firm can capture the value of a resource.
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What is a key characteristic of differentiation strategy?
What is a key characteristic of differentiation strategy?
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Ryanair is an example of a company that employs a differentiation focus strategy.
Ryanair is an example of a company that employs a differentiation focus strategy.
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What market strategy involves increasing market share using existing products?
What market strategy involves increasing market share using existing products?
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Apple differentiates its products through ________ design and technology.
Apple differentiates its products through ________ design and technology.
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Which company is known for strong customization in the high-end automobile market?
Which company is known for strong customization in the high-end automobile market?
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Match the following strategic focuses with their definitions:
Match the following strategic focuses with their definitions:
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Cost control is a key characteristic of the differentiation strategy.
Cost control is a key characteristic of the differentiation strategy.
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Which corporation type does corporate strategy apply to?
Which corporation type does corporate strategy apply to?
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What is a key characteristic of agile strategy development?
What is a key characteristic of agile strategy development?
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Agile strategy development lacks adaptability to market changes.
Agile strategy development lacks adaptability to market changes.
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Name one disadvantage of agile strategy development.
Name one disadvantage of agile strategy development.
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Agile strategy development focuses on __________ goals.
Agile strategy development focuses on __________ goals.
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Match the aspects of traditional and agile strategy development:
Match the aspects of traditional and agile strategy development:
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Which of the following is a significant advantage of agile strategy development?
Which of the following is a significant advantage of agile strategy development?
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Collaboration is not an important aspect of agile strategy development.
Collaboration is not an important aspect of agile strategy development.
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What framework evaluates whether a strategy aligns with an organization's objectives?
What framework evaluates whether a strategy aligns with an organization's objectives?
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Which of the following best describes the definition of acceptability in the context of strategic management?
Which of the following best describes the definition of acceptability in the context of strategic management?
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Incremental transformation requires cultural change over time.
Incremental transformation requires cultural change over time.
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What are the four types of strategic change?
What are the four types of strategic change?
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The McKinsey 7S framework emphasizes that all elements must align to achieve a _______.
The McKinsey 7S framework emphasizes that all elements must align to achieve a _______.
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Match the following strategic objectives with their descriptions:
Match the following strategic objectives with their descriptions:
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Which key question assesses the feasibility of a strategy?
Which key question assesses the feasibility of a strategy?
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Big bang realignment fundamentally changes the culture of an organization.
Big bang realignment fundamentally changes the culture of an organization.
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Name one advantage of conducting an acceptability assessment before pursuing a strategic change.
Name one advantage of conducting an acceptability assessment before pursuing a strategic change.
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Study Notes
Strategy Definitions
- Strategy is the determination of long-run goals and objectives for an enterprise, and the adoption of courses of action necessary to achieve these goals. This involves allocating resources.
Why Strategy?
- Strategy provides direction and drives decision-making.
- It actively shapes, guides and motivates organizational action.
Traditional/Classic Strategic Planning
- Identify current mission, goals, and strategies.
- Conduct SWOT analysis (internal and external).
- Formulate specific strategies.
- Implement Strategies
- Evaluate Results
Realised Strategies
- Intended Strategies – as planned
- Emergent Strategy - patterns that develop from decisions over time
- Realised Strategy – the actual strategy implemented
- Unrealised Strategy – intended strategies that were not put into practice
- Emergent Strategies – retrospective incorporation into the intended strategy.
Top-Down/Bottom-Up (or Hybrid) Planning
- Traditional top-down approaches are supplemented by bottom-up feedback to increase flexibility and employee motivation.
Traditional Planning vs Agile Strategic Planning
- Traditional planning is rigid, top-down, and formal with intermittent approval/decisions, a slow/layered approach and formal documentation. Communication is cascading.
- Agile planning is informal, leverages agile methods, uses a continuous approach with empowered decision making, bite-sized communication and less documentation but more interaction and dialogue.
The Exploring Strategy Model
- Three interlinked circles: Strategic Position, Strategic Choices, Strategy in Action.
- Strategic Position: what a company can do and what it seeks to do - considering the organization's environment, capabilities, culture and purpose.
- Strategic Choices: available options that need to be evaluated.
- Strategy in Action: the choices made and how they are implemented.
PESTEL Analysis
- Political: Government policies, political stability, trade agreements.
- Economic: Growth rate, inflation, unemployment.
- Social: Demographics, cultural trends, health consciousness.
- Technological: Innovation, automation, R&D.
- Environmental: Sustainability, climate change, resource availability.
- Legal: Regulations, employment laws.
Porter's Five Forces
- Threat of new entrants: Includes barriers to entry, economies of scale, and access to distribution channels.
- Bargaining power of suppliers: Number of suppliers, uniqueness of products, switching costs.
- Bargaining power of buyers: Number of buyers, standardized product differentiation, price sensitivity.
- Threat of substitute products or services: Availability of substitutes, switching costs, price-performance trade-offs.
- Industry rivalry: Number of competitors, industry growth, product differentiation.
Industry Life Cycle
- Market Size, Development, Growth Stages
Capability (linked to strategic position)
- Resources and capabilities that produce diverse outcomes and performance within different firms. This is due to the distinctiveness of resources and capabilities.
Competitive Advantage(VRIO Model)
- The VRIO model helps to identify valuable, rare, inimitable and organized resources and creates a sustainable competitive advantage.
Purpose (linked to strategic position)
- Organizational purpose is defined by values, vision, and mission, with these factors underpinning vision and mission statements.
Culture (linked to strategic position)
- May differ from stated organizational values
Business Strategies (Analysis of Generic Business Choices and Strategic Options)
- Cost leadership
- Cost focus
- Differentiation
Innovation
- Developing new and unique products with premium pricing
Market Penetration
- Increase market share with existing markets and existing products.
- Attract competitors' customers.
- Improve existing products or services.
- Increase use of existing products.
Market Development
- Entering new markets with existing products.
- Target new segments.
- Employ new distribution channels.
Product Development
- Create new products for existing markets
- Enhance existing products
- Create product line extensions
Diversification
- Entering new markets with new products to spread risk, and increase financial stability.
- Include related and unrelated diversification.
Internalisation, Acquisitions and Alliances
- Drivers of internalisation, including government, market, cost and competitive drivers.
- Characteristics of internal development, including organic, growth, control, pace, investment, and risk.
- Joint ventures.
Strategy in Action: Strategy Development Approaches
- Top-down planning
- Iterative and incremental approaches
Evaluating (linked to Strategy in Action)
- Suitability - is the strategy appropriate for the organization's goals and the environment?
- Acceptability - what are the expected outcomes?
- Feasibility - are the resources and capabilities sufficient for implementation?
- Safety Framework
Changing and Organising (linked to Strategy in Action)
- Management of strategic change - nature of change influences the approach, including incremental and big-bang (realignment/transformation).
- McKinsey 7S Framework highlights the importance of all elements in achieving a shared vision.
- Identifying strategic objectives, including financial, customer, internal, operational, environmental, CSR, learning, and growth.
Summary
- Strategy is about making the right choices to win in business.
- Strategy occurs at different levels.
- Includes analytical and creative strategy processes.
- Strong analysis is necessary.
- Strategic alternatives must be developed.
- Strategic capabilities are crucial in the development process.
- Key elements such as technology, R&D, and operations contribute to competitive advantage.
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Description
Test your knowledge on the traditional strategic planning process with this quiz. Explore concepts such as SWOT analysis, different strategic approaches, and their impacts on employee motivation. Get ready to challenge your understanding of strategic planning fundamentals.
