BUSINESS STRATEGY EXAM 7 QUESTIONS
WITH 100% CORRECT ANSWERS!!
Strategy
- The determination of the long run goals/objectives of an enterprise
- adoption of course actions/allocation of resources to carry out goals
Emergence of strategy
1920s - 1930s = rapid changing business/competitive environment
- growing complexity of firms
- accelerated changes within firms (e.g. tech)
1930s = emergence of management stratgey and consultant
3 main fields for strategy
1) Economics
- how do markets work, how might they be exploited to the benefits of our firm
2) Psychology
- what do managers want and how do they behave, form mental models of the world and act on
those beliefs
3) Sociology
- how do firms strategic decisions influence each other, how do ideas and tech diffuse within
business
Use of strategy to reach competitive advantage
1) decision supports
- enhances quality of decision making
2) coordinating device
,- helps coordinate between different organisational members
3) target
- focus on long-term goals
Successful Strategies
- effective implementation of
1) goals
2) external analysis
3) internal analysis
Goals (Successful Strategies)
- simple
-consistent
- long term objectives
External analysis (Successful Strategies)
- profound understanding of the competitive environment
Internal analysis (Successful Strategies)
- objective appraisal of resources and capabilities
Difficulty in developing good strategy
- right set of choices may not be obvious
- uncertainty
- finite resources
- outcome not immediate
Strategy as Design
planning and rational choice > intended strategy > realized strategy
Strategy as Process
, Many decision makers responding to multitude of external and internal forces -> emergent
strategy -> realized strategy
Strategising as action
- strategy document is not a strategy until someone acts on it
Industrial organisation model of above average returns
Assumption:
- external environment is a primary controller of firms and determinant of success
- firms competing within an industry have similar strategies and resources
- resources are highly mobile
- managers rational, will act in the firms best interest
Business strategy
- identifies how a division or strategic business unit will compete in its product or service
industry
- e.g. low cost vs differentiation
- aldi vs Waitrose
Resources based model of above return
- each organisation is a collection of unique resources/capabilities
- uniqueness = competitive advantage
- strategy that firm chooses allow it to detect the most attractive industry
3 main stake holders
1) capital market stakeholders
2) product market stakeholders
3) organisational stakeholders
Capital market stakeholders
WITH 100% CORRECT ANSWERS!!
Strategy
- The determination of the long run goals/objectives of an enterprise
- adoption of course actions/allocation of resources to carry out goals
Emergence of strategy
1920s - 1930s = rapid changing business/competitive environment
- growing complexity of firms
- accelerated changes within firms (e.g. tech)
1930s = emergence of management stratgey and consultant
3 main fields for strategy
1) Economics
- how do markets work, how might they be exploited to the benefits of our firm
2) Psychology
- what do managers want and how do they behave, form mental models of the world and act on
those beliefs
3) Sociology
- how do firms strategic decisions influence each other, how do ideas and tech diffuse within
business
Use of strategy to reach competitive advantage
1) decision supports
- enhances quality of decision making
2) coordinating device
,- helps coordinate between different organisational members
3) target
- focus on long-term goals
Successful Strategies
- effective implementation of
1) goals
2) external analysis
3) internal analysis
Goals (Successful Strategies)
- simple
-consistent
- long term objectives
External analysis (Successful Strategies)
- profound understanding of the competitive environment
Internal analysis (Successful Strategies)
- objective appraisal of resources and capabilities
Difficulty in developing good strategy
- right set of choices may not be obvious
- uncertainty
- finite resources
- outcome not immediate
Strategy as Design
planning and rational choice > intended strategy > realized strategy
Strategy as Process
, Many decision makers responding to multitude of external and internal forces -> emergent
strategy -> realized strategy
Strategising as action
- strategy document is not a strategy until someone acts on it
Industrial organisation model of above average returns
Assumption:
- external environment is a primary controller of firms and determinant of success
- firms competing within an industry have similar strategies and resources
- resources are highly mobile
- managers rational, will act in the firms best interest
Business strategy
- identifies how a division or strategic business unit will compete in its product or service
industry
- e.g. low cost vs differentiation
- aldi vs Waitrose
Resources based model of above return
- each organisation is a collection of unique resources/capabilities
- uniqueness = competitive advantage
- strategy that firm chooses allow it to detect the most attractive industry
3 main stake holders
1) capital market stakeholders
2) product market stakeholders
3) organisational stakeholders
Capital market stakeholders
