E3 Enterprise Strategy Revision Summarise-Books Pdf

E3 Enterprise Strategy revision summarise
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E3 revision summaries,1 Strategic Management,E3 revision summaries. Key summary of chapter,What is strategy, A course of action including the specification of resources. required to achieve a specific objective,CIMA Official Terminology. Levels of strategy Johnson and Scholes,Corporate strategy. Business Strategy,Functional Strategy,Arguments in favour of a strategic approach.
Strategy helps minimise risk,Avoids short term behaviour. Improves stakeholder perceptions, Encourages environmental analysis e g critical to react to change. Evidence indicates performance can be improved using strategic approaches. Integration and coordination of activities and processes. Arguments against a strategic approach, Difficult to plan when environment changing uncertain or complex. Encourages conformity stifling innovation e g the corporate straightjacket. Infrequently reviewed e g chosen long term strategy may not keep pace with. Implementation often managed poorly, Rational planning a complex methodology and costly for small businesses. E3 revision summaries, Comparing and contrasting approaches to strategic formulation.
The Rational Incremental Freewheeling Emergent, Planning process approaches Opportunism strategies. Top down and Top down and Top down and Bottom up and. centralised centralised centralised decentralised, Time horizon Time horizon 6 Time horizon Time horizon. 2 10 years months to 2 years day to day basis indefinite. Formal Less formal Informal Informal,planning planning planning planning. Complex and Less complex Less complex More complex. costly and costly and costly and less costly,Stable and Dynamic and Dynamic and Dynamic and. certain uncertain uncertain uncertain,environment environment environment environment.
Inflexible Flexible Flexible Flexible,E3 revision summaries. The rational planning process, Top down centralised and formalised approach to strategic planning Originated. from the USA e g the planning horizon for the organisation could be over 2 10 years. Advantages Disadvantages, For transformational or Rational planning can be too. radical change rigid and bureaucratic e g no use,Copes with the uncertain for the small business. future by providing long Rational planning can stifle. term plans innovation e g locked into plans,No use for dynamic or uncertain.
Helps integrate and environments e g plans quickly. coordinate complex become out of date,organisations. The rational planning process,POSITION REVIEW CONTROL. MISSION CORPORATE OPTION EVALUATION,OBJECTIVES APPRAISAL GENERATION CHOICE. ENVIRONMENTAL,IMPLEMENTATION,E3 revision summaries. Incremental planning approaches logical incrementalism. Top down centralised and less formalised approach to strategic planning Smaller. gradual and more incremental adjustments to strategic plans e g every 6 months up to 2. years maximum,Advantages Disadvantages, Less complex and long winded Too reactive muddling through.
Better for uncertainty or rapidly Not suitable for transformational or. changing environments radical change, More frequent gradual Lack of long term direction e g. adjustment e g easier to control strategic drift may occur. and manage,Greater frequency of planning,to adjust plans to environmental. The entrepreneurial model or freewheeling opportunism. Henry Mintzberg referred to freewheeling opportunism as an opportunistic strategy. dominated by the search for new opportunities with bold and often high risk decisions that. need to be made by the entrepreneur him or herself. Freewheeling opportunism is a top down centralised informal and short term approach. to strategic planning,Advantages Disadvantages, Focus on exploiting product and Organisation too reactive muddling. market opportunities e g never through, miss a good opportunity Not suitable for transformational or. Less time consuming and radical change,complicated Lack of long term direction.
Greater frequency of planning to Relies heavily of the judgement and. adjust plans to environmental experience of the founder e g one. change single individual,Better for uncertainty or rapidly. changing environments,E3 revision summaries,Emergent strategies. Henry Minzberg described emergent strategies as patterns or consistencies realised. despite or in the absence of conscious intention by senior management. Strategy emerges and is unanticipated, Informal and bottom up decentralised approach allowing strategic courses of action to. be developed from both tactical and operational levels within the organisation. Advantages Disadvantages, Quicker change or repositioning for Chaotic organisation that lacks. the organisation e g lower strategic control over planning. levels closer to the customer Lack of long term direction. Organisation too reactive, Tactical and operational levels an muddling through.
extensive source of innovative ideas Requires entrepreneurial skills. Greater motivation to other strategic from staff which may not exist. Supports culture of flexibility,learning and enterprise. Comparing and contrasting RBV to the Positioning Approach. Resource Based View RBV Positioning View PA,Similarities. Both ideas stem from the rational planning process. Both can use centralised rational planning or decentralised emergent. approaches, Both aim to achieve competitive advantage e g ways to compete with rivals. Differences,Resource based approach Market based approach. Inside out e g key internal Outside in e g best external. resources for achieving success opportunities to exploit. Organisation focuses on what it Organisation focuses on diversity. does best e g stick to knitting and innovation, Emphasis on internal appraisal Emphasis on external.
e g unique assets or core environment e g competition and. competences customers, Higher cost and time to exploit Less costly to exploit but short. but long term advantage term advantage gained,E3 revision summaries. Two contrasting leadership styles generally exist democratic and autocratic. Democratic is based on democracy and social equality. Autocratic a bossy way and often aggressive and dominating. Huneryager and,Dictatorial Autocratic Democratic Laissez faire. E3 revision summaries,E3 revision summaries,Mission Objectives. and Stakeholders,E3 revision summaries,Key summary of chapter.
Stakeholders are those organisations or people that have an interest in the organisation. these interests varied and for many reasons They can be a source of potential conflict for. the successful accomplishment of an organisations strategy. Mendelow s stakeholder mapping model, Mendelows matrix is a way of prioritising stakeholders by subjective mapping of them. in order to understand and resolve any issues or conflicts that may exist This model. prioritises by mapping which stakeholders should more likely considered and therefore. satisfied by the organisation, Power e g bargaining power right or ability to exert influence over the. organisations strategic aims and the general way it conducts itself. Interest e g interest in the activities or conduct of the organisation for varied. Interest in the organisation,Power over the organisation. Minimal Effort Keep Informed,priority four priority three. Keep Satisfied Key players,priority two priority one.
E3 revision summaries,Mission statements, Every organisation should have a mission purpose or reason for being This can be. embedded within a mission statement A mission statement describes in writing the basic. purpose of an organisation and what it is trying to accomplish A mission statement is a. brief description of an organisations fundamental purpose. Goals and objectives, What the organisation plans or intends to achieve Normally converted to objectives. which measurability and timescale Long term and sufficient to satisfy the mission. Critical success factors CSFs, Key organisational goals that if achieved will make the organisation more successful. Objectives, A measurable goal with a clearly defined timescale to achieve it. Objectives should SMART specific measurable agreed realistic and time bound. Key performance indicators KPIs performance measures. Objectives which have measurability and time scale. E3 revision summaries,E3 revision summaries,3 Environmental Analysis.
E3 revision summaries 21 Value chain analysis A value chain is the sequence of business activities by which in the perspective of the end user value is added to the products or services produced by an organisation CIMA

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