It is about how to coordinate the elements of a business (they want to create a sustainable advantage)
What is Deliberate Strategy?
What is an emergent strategy?
What is a realized strategy?
Plans that are implemented
What is an unrealized strategy?
Plans that are not implemented
What are the two parts of the strategy making Process?
Formulation and implementation
What is the formulation part of the strategy making process?
Its the history, mission, vision, internal/external analysis, functional level and corporate level strategies
What is the implementation part of the strategy making process?
Governanceðics, organizational culture, structure and control systems, and global strategy
What are the three planning techniques?
Devils Advocate, Dialectic Inquiry, and outside view
What is devils advocate?
Good vs. bad
What is Dialectic Inquiry?
Good vs. alternate good
What is Outside view?
Experience (looks at the past and looks at what did and didnt work)
What are the pitfslls in planning?
Prior hypothesis bias, esculating commitment, Reasoning by analogy, representativeness, illusion of control and availability error
What is an industry?
A group of Companies that offer products/services that are close substitutes for each other (ebay and amazon)
What is a sector?
A group of closely related industries
What are the definitions of opportunities and threats?
Opportunities: are possible advantages that and industry can use that is outside the company and they have no control over. Threats: Possible disadvantages that can hurt the industry thats outside the company and they have no control over.
What are the different parts of opportunities and threats?
Social, macroeconomics, technological, legal, demographics, and global
What are the Porters five forces?
Threat of New entrants, Bargaining Power of Suppliers, Bargaining Power of Buyers, Threat of Substitutes, and Overall rivalry
Name two of the threat of new entrants.
1)economies of scale(cost phenominon)
2) Brand Loyalty
3)Absolute Cost Advantage
4)Customer Switching Costs
Name two parts of the Bargaining power of suppliers.