Buss1001 Notes
Buss1001 Notes
Strategy
Strategy acts as a means of achieving a strategic goal through the utilization of internal resources within a business. In accordance to the generic business model, the basis of a profit-making businesses goal involves the ability to produce revenue that exceeds the expenses. Therefore, the use of business strategy is imperative if a sustainable competitive advantage is to be achieved, and profit maximized.
Methods of building strategy
* Rational approach: strategy creation is a step by step rational exercise * Not 100% objective e.g. SWOT more often subjective * Top down approach – influence of personal values, culture * Static – practice suggests something different and less rational or predictable – external environment is always in flux * Competitors might copy you
* Flexible approach: strategy involves preparing for multiple scenarios
* Creative approach: strategy is based vision rather than analysis
* Behavioural approach: strategy is the outcome of negotiations within the business
* Incremental (emergent) approach: strategy is emergent based on organisational environment * A fluid learning process in which formulation and implementation merge to produce effective and creative strategies * Managing emergent and deliberate strategy making
Two dominant views of strategy creation
Rational Incremental
THE ANALYSIS PHASE
INTERNAL ANALYSIS
Resource Based View
What resources does the firm have and how can they be used for its competitive advantage?
Physical resources, financial resources, and human resources. The analysis should cover the relationships between the firms and their suppliers and customers.
Value Chain
The value chain offers a view of the organization as a cumulative build-up of added value for the customer through the interaction between key operational activities. The key element of the value chain is not just the added
Strategy
Strategy acts as a means of achieving a strategic goal through the utilization of internal resources within a business. In accordance to the generic business model, the basis of a profit-making businesses goal involves the ability to produce revenue that exceeds the expenses. Therefore, the use of business strategy is imperative if a sustainable competitive advantage is to be achieved, and profit maximized.
Methods of building strategy
* Rational approach: strategy creation is a step by step rational exercise * Not 100% objective e.g. SWOT more often subjective * Top down approach – influence of personal values, culture * Static – practice suggests something different and less rational or predictable – external environment is always in flux * Competitors might copy you
* Flexible approach: strategy involves preparing for multiple scenarios
* Creative approach: strategy is based vision rather than analysis
* Behavioural approach: strategy is the outcome of negotiations within the business
* Incremental (emergent) approach: strategy is emergent based on organisational environment * A fluid learning process in which formulation and implementation merge to produce effective and creative strategies * Managing emergent and deliberate strategy making
Two dominant views of strategy creation
Rational Incremental
THE ANALYSIS PHASE
INTERNAL ANALYSIS
Resource Based View
What resources does the firm have and how can they be used for its competitive advantage?
Physical resources, financial resources, and human resources. The analysis should cover the relationships between the firms and their suppliers and customers.
Value Chain
The value chain offers a view of the organization as a cumulative build-up of added value for the customer through the interaction between key operational activities. The key element of the value chain is not just the added