MAC2602 Summarised Study NotesMAC2602 Summarised Study NotesMAC2602 Summarised Study NotesMAC2602 Summarised Study NotesMAC2602 Summarised Study NotesMAC2602 Summarised Study NotesMAC2602 Summarised Study NotesMAC2602 Summarised Study Notes
Study Guide One
Part 1 : Strategy and strategic planning
Topic 1 : Development of the organisation’s strategy
Study Unit 1 : Defining concepts – mission,core values,vision,strategy and strategic objectives
Mission - core purpose
Effective mission statement :
Inspire change ,but does not change
Long-term in nature
Easy to understand and easy to communicate
Core values - principles that guide the organisation
Vision - defines direction for the future
Strategy – choosing long-term strategies to achieve purpose set out in mission statement
Three generally accepted competitive strategies :
Cost leadership strategy
Pricing strategy :
Price skimming
Selective pricing
Market pricing
Predatory (penetration) pricing
Differentiation
Elements of strategy :
Choice of activities which provide a competitive advantage
Trade-offs made to choose specific actions
Activities chosen must fit one another
Major structural changes can change strategies,however cannot be constantly
reinvented
Formulation should display a broad conceptual knowledge of the operating
environment of the organisation
Core values are taken into account
Strategic objectives – measures to progress and targets to achieve in a specific time frame
Characteristics :
Precise formulation of goals to be achieved
Contains a measure of progress
Contains a target to be achieved
Contains a time frame for target to be achieved
SMART criteria :
Specific
Measurable
Attainable
Relevant
Time-bound
m
m
, Stuvia.com - The study-notes marketplace
Study Unit 2 : Key stakeholders : roles,conflict and influences
Stakeholders – those persons and organisations that are affected by the organisation's
activities and who have an interest in the strategy of the organisation.
Classification of stakeholders :
Primary Stakeholders (have a contractual relationship)
Internal Stakeholders
o Managers
o Employees
Connected Stakeholders
o Shareholders/owners
o Banks and lenders
o Suppliers
o Customers
Secondary Stakeholders (do not have a contractual relationship)
External Stakeholders
o Government
o Local authorities
o Professional bodies
o Pressure groups
o Community at large
Possible conflicts between the expectations of the different types of stakeholders -
shareholders/owners expect a specific return on their investment whilst employees expect
security of their jobs and job satisfaction.
Influence of different stakeholders on development of organisation strategy :
Dependency
Degrees of power
Level of interest
m
m
, Stuvia.com - The study-notes marketplace
Study Unit 3 : Factors that influence the development of an organisation’s strategy
Influence of Factors in the external environment :
Political (including legal) environment
Economic environment
Social environment (sustainability and ethics)
Technological environment
Competitive Environment (operating) :
Customer position
Purpose of a competitor analysis :
o Study the market,trends and patterns
o Predict and forecast an organisation’s demand and supply
o Formulate a strategy
o Increase the market share
o Develop a strategy for organisation growth
o Plan for diversification and expansion
o Study forthcoming trends in the industry
Customer base
Suppliers
Creditors
Labour market
Influence of factors in the internal environment :
Corporate culture (shared beliefs,values and symbols)
Organisation leadership (executives and managers)
Human resource policies (formal decisions)
Industrial relations (Labour relations)
Controls at organisation level (such as code of conduct)
m
m
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TestbanksNotesAssignmentsAndExampacksGuru. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.00. You're not tied to anything after your purchase.
