Chapter 1 - Introduction

Question 1

What is a strategy?

Answer 1

Firm’s choices in terms of allocation of resources, in order to reach objectives (Mintzberg, Ahltsrand & Lampel, 1998)

Question 2

What is the 3 fundamental pillars of a strategy?

Answer 2

Value creation

Competitive confrontation

Activities boundaries choices

Question 3

What is a classic 3 step process of a strategy?

Answer 3

To define goals,
To make decisions and choices
To implements means to reach them

Question 4

In which domains of the firm can strategy be implemented?

Answer 4

Most domains:

Accounting, financing, structuring, organising, producing, delivering, controlling, forecasting etc.

Question 5

What two possible approaches can be made in terms of strategy implementation?

Answer 5

Vertical integration: the domains of the firms is working independently

Horizontal integration: strategy consists of finding smart combinations between the domains

Question 6

What 3 variables can effect a strategy?

Answer 6

Techno-economic: result, growth, competition, positioning etc.

Social variables: motivation, employees, satisfaction

Political variables: power, management, governance etc.

Question 7

What is strategic segmentation?

Answer 7

A strategic choice by a company to segmentize its product mix. E.g., Coca-cola buying/making carbonated drinks, but also juice.

Question 8

Which 4 philosophies can a strategy follow?

Answer 8

Visionary,
Realism (resources)
Open (environment)
Controlled (objective)

Question 9

What 3 relationship doe companies have with their competitors?

Answer 9

Avoidance (ignoring each other)
Cooperation
Confrotation