MGMT344 QUESTIONS AND ANSWERS A+ GRADED
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Henry Mintzberg's 5 Ps for Strategy:
- PLAN
- PLOY
- PATTERN
- POSITIONS
- PERSPETIVE
Definition: Strategic Management:
Setting objectives for the organisation, planning and implementing the necessary
changes and measuring the outcome
4 Key Perspectives in Strategy:
- Environment led Perspective.
- Resource led perspective.
- Proactive strategy
- Reactive strategy
Strategy Development Processes:
combines some emergent (logical incrementalism) and some deliberate (Strategic
planning) elements. Participation will vary due to urgency: Immediate actions (e.g.,
acquisitions = task forces & meetings) or long-term shifts (e.g., growth opportunities =
workshops)
4 Main Roles in Strategic Systems:
- Formulating Strategy
- Learning
- Coordinating
- Communicating plans & objectives
Stakeholder Mapping: The Power/Attention Matrix
Stakeholders Level of Attention (across)
Stakeholder power (down)
- High Power High Attention: KEY PLAYERS
- High Power Low Attention: KEEP SATISFIED
- Low Power High Attention: KEEP INFORMEDLow Power Low Attention: MINIAL
EFFORT
Board of Directors:
- Has 5 Major responsibilities & 3 key commitments: nominating, auditing, remuneration
The importance of analysis in the external environment:
- The needs for an organisation to be a good fit.
- Finding potential benefits
- Adapt to changing environment.
Strategic analysis & Cognitive Bias:
- Strategic analysis should:
o REVEAL opportunities & threats.
, o CORRECT trends and relationships
o WEAEKN past strategies
o SUPPORT new strategies
- But cognitive bias can:
o CONCEAL opportunities & threats.
o CREATE poor perceptions of tends and relationships.
o REINFORCE past strategies.
Cognitive biases
recency bias
escalating commitment
illusion of control
framing effects
anchoring effect
porters 5 forces
*Rivalry among competitors;
*Threat of new entrants;
*Threat of substitute products;
*Bargaining power of buyers;
*Bargaining power of suppliers;
Simple Control system
1. Mission
2. Objectives
3. Strategies
4. Implementation
5. Evaluation
6. Remedial action
controls and incentives include
- Direct supervision
- Operating & capital expenditure budgets
- Targets and pressures
the balanced scorecard
combines strategic control and evaluation of performance to move from a short term
view to a long term strategic one. it uses financial, customer, internal process, and
learning/growth lens
VRIO
Value of strategic competition, Rarity, Imitability, Organizational support
Definition: Dynamic Capabilities:
The firm's ability to renew and recreate strategic capabilities to meet the needs of
changing environments. Can create, extend, or modify operational capabilities.
the value chain
describes the categories within an organsiation which create a product or service.
about linking activities
this concept invites strategist to think of the firms in terms of activities
the value system/industry
.Buy Quality Materials!
Henry Mintzberg's 5 Ps for Strategy:
- PLAN
- PLOY
- PATTERN
- POSITIONS
- PERSPETIVE
Definition: Strategic Management:
Setting objectives for the organisation, planning and implementing the necessary
changes and measuring the outcome
4 Key Perspectives in Strategy:
- Environment led Perspective.
- Resource led perspective.
- Proactive strategy
- Reactive strategy
Strategy Development Processes:
combines some emergent (logical incrementalism) and some deliberate (Strategic
planning) elements. Participation will vary due to urgency: Immediate actions (e.g.,
acquisitions = task forces & meetings) or long-term shifts (e.g., growth opportunities =
workshops)
4 Main Roles in Strategic Systems:
- Formulating Strategy
- Learning
- Coordinating
- Communicating plans & objectives
Stakeholder Mapping: The Power/Attention Matrix
Stakeholders Level of Attention (across)
Stakeholder power (down)
- High Power High Attention: KEY PLAYERS
- High Power Low Attention: KEEP SATISFIED
- Low Power High Attention: KEEP INFORMEDLow Power Low Attention: MINIAL
EFFORT
Board of Directors:
- Has 5 Major responsibilities & 3 key commitments: nominating, auditing, remuneration
The importance of analysis in the external environment:
- The needs for an organisation to be a good fit.
- Finding potential benefits
- Adapt to changing environment.
Strategic analysis & Cognitive Bias:
- Strategic analysis should:
o REVEAL opportunities & threats.
, o CORRECT trends and relationships
o WEAEKN past strategies
o SUPPORT new strategies
- But cognitive bias can:
o CONCEAL opportunities & threats.
o CREATE poor perceptions of tends and relationships.
o REINFORCE past strategies.
Cognitive biases
recency bias
escalating commitment
illusion of control
framing effects
anchoring effect
porters 5 forces
*Rivalry among competitors;
*Threat of new entrants;
*Threat of substitute products;
*Bargaining power of buyers;
*Bargaining power of suppliers;
Simple Control system
1. Mission
2. Objectives
3. Strategies
4. Implementation
5. Evaluation
6. Remedial action
controls and incentives include
- Direct supervision
- Operating & capital expenditure budgets
- Targets and pressures
the balanced scorecard
combines strategic control and evaluation of performance to move from a short term
view to a long term strategic one. it uses financial, customer, internal process, and
learning/growth lens
VRIO
Value of strategic competition, Rarity, Imitability, Organizational support
Definition: Dynamic Capabilities:
The firm's ability to renew and recreate strategic capabilities to meet the needs of
changing environments. Can create, extend, or modify operational capabilities.
the value chain
describes the categories within an organsiation which create a product or service.
about linking activities
this concept invites strategist to think of the firms in terms of activities
the value system/industry
