Strategic Planning & Analysis Flashcards

The VRIO framework assesses whether a resource provides sustained competitive advantage by evaluating its:

Answer: Value, Rarity, Imitability, and Organization

VRIO asks whether a resource is Valuable (exploits opportunities), Rare (not widely held), costly to Imitate, and supported by the Organization to sustain competitive advantage.

In strategic planning, 'emergent strategy' contrasts with 'deliberate strategy' in that it:

Answer: Arises organically from day-to-day decisions and adaptations not originally planned

Emergent strategy, identified by Henry Mintzberg, develops from unplanned actions and patterns that arise in response to real conditions rather than from a formal planning process.

Which of the following is an example of a 'backward vertical integration' strategy?

Answer: A retailer acquiring a supplier of its raw materials

Backward vertical integration occurs when a company acquires or develops operations that were previously performed by its suppliers, moving toward the start of the supply chain.

A 'turnaround strategy' is most appropriately deployed when an organization:

Answer: Faces serious performance decline and needs to reverse negative trends quickly

A turnaround strategy is used to reverse declining performance through cost cutting, restructuring, divestiture of underperforming units, and refocusing on core strengths.

What is the primary purpose of a 'strategic alliance' between two organizations?

Answer: To share resources, capabilities, or risks while each party maintains independence

Strategic alliances allow organizations to collaborate on specific initiatives—sharing technology, market access, or risk—without the full commitment or cost of a merger.

In the Balanced Scorecard framework, the 'Learning and Growth' perspective primarily focuses on:

Answer: Human capital development, technology infrastructure, and organizational culture

The Learning and Growth perspective addresses the foundational enablers—employee skills, information systems, and culture—that drive performance in the other three scorecard perspectives.

Which strategic concept describes the process of identifying and concentrating resources on the activities where an organization has the greatest relative competence?

Answer: Core competency focus

Core competency focus, from Prahalad and Hamel, involves identifying the unique collective capabilities that distinguish an organization and concentrating strategic resources on deepening those strengths.