Implementing Strategic Decisions (AQA A Level Business): Flashcards
Exam code: 7132
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Define successful strategy.
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Cards in this collection (23)
Define successful strategy.
A successful strategy is one that achieves the business's stated objectives, fits with its mission and available resources, and is accepted by the people who need to carry it out.
True or False?
The success of a strategy should be judged on profit alone.
False.
Success should be judged on more than profit. Qualitative measures, such as reputation, staff morale and stakeholder trust, matter alongside quantitative measures, such as sales and market share.
Why can a strategy that looks strong on paper still fail?
A strategy can fail if it is not put into practice effectively. Turning a plan into real, day-to-day actions is often harder than deciding on the strategy itself.
True or False?
Weakness in just one factor can undermine the implementation of an otherwise sound strategy.
True.
Even if most factors are strong, weakness in just one factor can undermine an otherwise sound strategic decision.
Which resources does a business need to implement a strategy?
A business needs sufficient finance, skilled staff, time and physical or technological resources. Underestimating what is required is a common cause of implementation failure.
Strategic implementation needs a detailed, realistic action plan with clear ________ and responsibilities.
Strategic implementation needs a detailed, realistic action plan with clear milestones and responsibilities.
Why is ongoing monitoring needed during strategic implementation?
Ongoing monitoring helps a business identify and correct problems quickly while the strategy is being carried out.
Why is strong leadership important for strategic implementation?
Strong leadership sets clear direction, makes timely decisions and maintains staff commitment to the strategy. This is particularly important when implementation meets obstacles or resistance.
True or False?
Once a strategy has been decided, it only needs to be communicated to senior managers.
False.
Employees and other stakeholders need to clearly understand the strategy and their own role in delivering it. Poor communication can lead to confusion, inconsistent execution or resistance to change.
Which external factors can affect strategic implementation?
External factors include economic conditions, competitor actions, regulations and technological change. These are outside the business's control.
Define competitive advantage.
A competitive advantage is an attribute, or combination of attributes, that allows a business to consistently outperform its rivals by offering customers greater value than they can match.
What makes a competitive advantage genuine?
A genuine competitive advantage tends to be difficult, slow or costly for rivals to imitate.
How can a business gain a cost advantage?
A business can gain a cost advantage through economies of scale, highly efficient operations or access to cheaper suppliers or resources. This allows lower prices without sacrificing profit.
What are the sources of a differentiation advantage?
A differentiation advantage comes from unique product features, a strong brand, superior customer service or protected technology that rivals cannot easily copy.
Define strategic drift.
Strategic drift is a gradual, often unnoticed, mismatch between a business's strategy and its changing external environment.
True or False?
Strategic drift is caused by making only small adjustments to a strategy when the market changes.
True.
It happens when a business makes small, incremental adjustments to its existing strategy rather than fundamentally rethinking it as the market changes.
How can complacency cause a business to lose competitiveness?
A business that has been successful for a long period may stop innovating or investing, assuming its position is secure. This allows rivals to catch up or overtake it.
How can a failure to invest in new technology cause a business to lose competitiveness?
Competitors who adopt more efficient processes or launch innovative new products can leave the business behind if it does not keep pace.
How can rising costs relative to competitors reduce a business's competitiveness?
If a business's costs rise faster than its rivals', for example through wage inflation or raw material costs, without matching productivity gains, its cost advantage can be eroded.
A business that does not change its product offer as customer expectations change gradually becomes less ______ to its target market.
A business that does not change its product offer as customer expectations change gradually becomes less relevant to its target market.
How can a business protect its competitive advantage from imitation by rivals?
A business can protect its advantage through patents, strong brand loyalty or genuinely unique resources.
Why does continual external change make competitiveness difficult to maintain?
Technological, economic and social change means a business must keep reinventing aspects of its strategy. This is costly and disruptive, particularly for large, established businesses built around an existing way of working.
Why can shareholder pressure make competitiveness harder to maintain?
Shareholders, particularly in public limited companies, may expect strong short-term profit. This makes it harder to justify the sustained investment needed to protect competitiveness in the long term.
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