question

planning

answer

the conscious, systematic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue

question

cycle

answer

Planning moves in a _____.

question

situational analysis

answer

a process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration

question

goals

answer

targets or ends that management desires to reach

question

SMART

answer

acronym for goals

question

specific, measurable, attainable, relevant, time-bound

answer

SMART

question

plans

answer

the actions or means managers intend to use to achieve organizational goals

question

scenario

answer

a narrative that describes a particular set of future conditions

question

single-use, standing, contingency

answer

three types of plans

question

single-use plans

answer

designed to achieve a set of goals that are not likely to be repeated in the future

question

standing plans

answer

focus on ongoing activities designed to achieve an enduring set of goals

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contingency plans

answer

specify actions to take when a company's initial plans have not worked well or events in the external environment require a sudden change

question

contingency plan

answer

A different _____ is attached to each scenario.

question

strategic managers

answer

top-level managers

question

tactical managers

answer

middle-level managers

question

operational managers

answer

frontline managers

question

strategic planning

answer

a set of procedures for making decisions about the organization's long-term goals and strategies

question

strategic goals

answer

major targets or end results relating to the organization's long-term survival, value, and growth

question

strategy

answer

a pattern of actions and resource allocations designed to achieve the organization's goals

question

active, get there, marketplace, fast, sequence, financial returns

answer

Five Questions About How the Organization Will Meet its Objectives: 1) Where will we be _____? 2) How will we _____? 3) How will we win in the _____? 4) How _____ will we move, and in what _____ will we make changes? How will we make _____?

question

tactical planning

answer

a set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a particular portion of the organization, such as a functional area like marketing

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operational planning

answer

the process of identifying the specific procedures and processes required at lower levels of the organization

question

tactical planning

answer

focuses on the major actions a unit must take to fulfill its part of the strategic plan

question

aligned

answer

All levels of planning should be _____.

question

strategic management

answer

a process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies

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mission

answer

an organization's basic purpose and scope of operations

question

strategic vision

answer

the long-term direction and strategic intent of a company

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stakeholders

answer

groups and individuals who affect and are affected by the achievement of the organization's mission, goals, and strategies

question

financial analysis, human resources assessment, marketing audit, operations analysis

answer

four components of internal resource analysis

question

financial analysis

answer

examines financial strengths and weaknesses through financial statements such as a balance sheet and an income statement and compares trends to historical and industry figures

question

human resources assessment

answer

examines strengths and weaknesses of all levels of managers and employees and focuses on key human resources activities, including recruitment, selection, placement, training, labor union relationships, compensation, promotion, appraisal, quality of work life, and human resources planning

question

marketing audit

answer

examines strengths and weaknesses of major marketing activities and identifies markets, key market segments, and the organization's competitive position (market share) within key markets

question

operations analysis

answer

examines the strengths and weaknesses of the organization's manufacturing, production, or service delivery activities

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resources

answer

inputs to a system that can enhance performance

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core capability

answer

a unique skill and/or knowledge an organization possesses that gives it an edge over competitors

question

SWOT analysis

answer

a comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy

question

strengths, weaknesses, opportunities, threats

answer

What do the letters in SWOT stand for?

question

tangible and intangible

answer

two broad categories of assets

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intangible assets

answer

things such as company reputation, culture, technical knowledge, and patents, as well as accumulated learning and experience

question

benchmarking

answer

the process of assessing how well one company's basic functions and skills compare with those of another company or set of companies

question

corporate strategy

answer

the set of businesses, markets, or industries in which an organization competes and the distribution of resources among these entities

question

concentration

answer

a strategy employed for an organization that operates a single business and competes in a single industry

question

vertical integration

answer

the acquisition or development of new businesses that produce parts or components of the organization's product

question

related diversification

answer

a strategy used to add new businesses that produce related products or are involved in related markets and activities

question

unrelated diversification

answer

a strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities

question

concentration, vertical integration, related diversification, unrelated diversification

answer

four basic alternatives for a corporate strategy (in order from very specialized to highly diverse)

question

business portfolio

answer

what the diversified businesses of an organization are sometimes called

question

BCG matrix

answer

a popular technique for analyzing a corporation's strategy for managing its portfolio

question

question marks, stars, cash cows, dogs

answer

four categories of businesses in the BCG matrix

question

question marks

answer

high-growth, weak-competitive position businesses that require substantial investment to improve their position, or else they should be divested

question

stars

answer

businesses with high growth and a strong competitive position that requrire heavy investment but whose strong position lets them generate the needed revenues

question

cash cows

answer

low-growth businesses with a strong competitive position that generate revenues in excess of their investment needs, so that they fund other businesses

question

dogs

answer

low-growth, weak-competitive-position businesses that should be divested after their remaining revenues are realized

question

market growth, relative competitive position

answer

The vertical axis of the BCG matrix is _____, and the horizontal axis is _____.

question

high, strong

answer

Stars are _____ in market growth and have _____ relative competitive position.

question

high, weak

answer

Question marks are _____ in market growth and have _____ relative competitive position.

question

low, strong

answer

Cash cows are _____ in market growth and have _____ relative competitive position.

question

low, weak

answer

Dogs are _____ in market growth and have _____ relative competitive position.

question

business strategy

answer

the major actions by which an organization competes in a particular industry or market

question

low-cost strategy

answer

a strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product

question

differentiation strategy

answer

a strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions

question

unwilling, unable

answer

The most effective strategy is one that competitors are _____ or _____ to imitate.

question

functional strategies

answer

strategies implemented by each functional area of the organization to support the organization to support the organization's business strategy

question

strategic control system

answer

a system designed to support mangers in evaluating the organization's progress regarding its strategy and, when discrepancies exist, taking corrective action

question

strategic tasks, organization capabilities, implementation agenda, implementation plan

answer

Four Steps of Strategy Implementation: 1. define _____, 2. assess _____, 3. develop an _____, and 4. create an _____.

question

certainty

answer

the state that exists when decision makers have accurate and comprehensive information

question

uncertainty

answer

the state that exists when decision makers have insufficient information

question

risk

answer

the state that exists when the probability of success is less than 100 percent and losses may occur

question

programmed decision

answer

used when the problem is frequent, repetitive, and routine, with much certainty regarding cause-and-effect relationships

question

programmed decision

answer

depends on policies, rules, and definite procedures

question

nonprogrammed decision

answer

used when the problem is novel and unstructured, with much uncertainty regarding cause-and-effect relationships

question

nonprogrammed decision

answer

needs creativity, intuition, tolerance for ambiguity, and creative problem solving

question

identify, diagnose, alternative solutions, evaluate, choice, implement, evaluate

answer

Six Stages of Formal Decision-Making: _____ and _____ the problem, generate _____, _____ alternatives, make the _____, _____ the decision, and _____ the decision.

question

situational analysis

answer

strategic planning step associated with "identifying and diagnosing the problem"

question

alternative goals and plans

answer

strategic planning step associated with "generating alternative solutions"

question

goal and plan evaluation

answer

strategic planning step associated with "evaluating alternatives"

question

goal and plan selection

answer

strategic planning step associated with "making the choice"

question

implementation

answer

strategic planning step associated with "implementing"

question

monitor and control

answer

strategic planning step associated with "evaluation"

question

ready-made solutions

answer

ideas that have been seen or tried before

question

custom-made solutions

answer

new, creative solutions designed specifically for the problem

question

maximizing

answer

a decision realizing the best possible outcome

question

satisficing

answer

choosing an option that is acceptable, although not necessarily the best or perfect

question

optimizing

answer

achieving the best possible balance among several goals

question

illusion of control, framing effects, discounting the future

answer

three psychological biases

question

illusion of control

answer

a belief that one can influence events even when one has no control over what will happen

question

framing effects

answer

a decision bias influenced by the way in which a problem or decision alternative is phrased or presented

question

discounting the future

answer

a bias weighing short-term costs and benefits more heavily than longer-term costs and benefits

question

real-time information, effectively, efficiently, realistic view

answer

Three Tactics for Managing Time Pressures: Focus on _____, involve people more _____ and _____ in the decision-making, and take a _____ of conflict.

question

information, perspectives, discussion, group process, commitment

answer

Advantages of Using Groups: 1. more _____ improves decisions, 2. different _____ enhance problem solving, 3. group _____ spurs thinking, 4. involvement in _____ leads to enhanced understanding of decisions, and 5. participation in problem solving increases _____ to decisions.

question

dominates, satisficing, groupthink, displaced

answer

Disadvantages of Using Groups: 1. one person _____ the discussion and undermines the group process, 2. group produces a _____ decision, 3. pressure to avoid disagreement leads to _____, and 4. original goals are _____ by new, less important goals.

question

groupthink

answer

a phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus

question

goal displacement

answer

a condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges

question

devil's advocate

answer

a person who has the job of criticizing ideas to ensure that their downsides are fully explored

question

dialectic

answer

a structured debate comparing two conflicting course of action

question

brainstorming

answer

a process in which group members generate as many ideas about a problem as they can; criticism is withheld until all ideas have been proposed

question

leadership style, disagreement, conflict, creativity

answer

Effectively managing group decision making has three requirements: 1. appropriate _____, constructive use of _____ and _____, and 3. enhancement of _____.

question

psychological biases, time pressures, social realities

answer

three ways that human nature erects barriers to good decisions

question

establish, opportunities, threats, strengths, weaknesses, SWOT analysis, strategy, implement

answer

The Strategic Planning Process: 1. _____ a mission, vision, and goals, 2. analyze external _____ and _____, 3. analyze internal _____ and _____, 4. conduct a _____ and formulate _____, 5. _____ the strategy.

question

information, cognitive limits, time limitations

answer

Herbert Simon asserts that full rationality is limited due to incomplete _____, the _____ of the decision maker, and _____.

question

bounded rationality

answer

Herbert Simon introduced the idea of _____ in the 1950s.

question

symptom, cause, why, goal, sub-goals

answer

We typically first become aware of an issue because of a _____, and our knee-jerk reaction is to assume a _____. Instead, we need to ask "_____?" to determine what the real _____ is and what _____ must be met to achieve it.

question

imagine, steps, resources, activities, time line, responsibility

answer

Implementing the Decision: _____ how things will be once the decision is fully implemented, lay out the _____ necessary to achieve that end, identify _____ and _____ needed, create a _____, and assign _____.

question

go wrong, externalities, targets

answer

Other things to consider when Implementing the Decision: What might _____? What _____ might come from this (positive and negative)? What _____ should be met along the way to help in evaluating the implementation?

question

monitor, identify, gather, evaluate, recycle

answer

In Evaluating the Decision, you must _____ it, clearly _____ what it should achieve, _____ and _____ data, and (if necessary) _____ and go through the process again.

question

time pressures

answer

the reality that managers are often pressed for time and thus must make quick decisions

question

cause, new

answer

Make sure, with Time Pressures, that you solve the _____ (not the symptom) and that you use _____ information (not out of date).

question

group decision making, politics, important others

answer

Three social realities are _____, _____, and the fact that you might try to satisfy ____.

question

planning

answer

a purposeful effort that is directed and controlled by managers and often draws on the knowledge and experience of employees throughout the organization

question

long, medium, short

answer

three levels of planning

question

inversely, increases, shorter

answer

Detail and Time are _____ related so that the level of detail _____ as the time gets _____

question

detail and time

answer

What are inversely related?

question

linear, iterative, reconsideration

answer

While the Strategic Management Process is portrayed as _____, in practice it is likely to be _____ as things revealed at a later stage may highlight issues that require _____ of an earlier stage.

question

internal, external

answer

In SWOT, strengths and weaknesses are _____ while opportunities and threats are _____.

question

labels, shared, internalized

answer

When it comes to Mission and Vision, specific _____ are not as important as having a clear sense of who or what the company is, where it's trying to go, and its philosophy. To be of value, these values must be widely _____ and _____ within the company.

question

context

answer

Categorization of something as a Strength or a Weakness or a Opportunity or Threat depends on _____. An opportunity for one organization may be a threat for another.

question

best practices, performance, costs

answer

The goal of Benchmarking is to thoroughly understand the "_____" of other firms and to undertake actions to achieve both better _____ and lower _____.

question

VRIO

answer

Just because a company has a resource or capability doesn't mean it can leverage it for competitive advantage. For it to allow for a competitive advantage, it must meet _____ criteria.

question

valuable, rare, inimitable, organizable

answer

VRIO

question

inimitable

answer

difficult to imitate

question

valuable

answer

capabilities that either help a firm to exploit opportunities to create value for customers or to neutralize threats in the environment

question

rare

answer

capabilities that are possessed by few, if any, current or potential competitors

question

inimitable

answer

capabilities that other firms cannot develop easily, usually due to unique historical conditions, causal ambiguity or social complexity

question

organizable

answer

capabilities that the firm can organize around in order to exploit

question

SWOT, goals, mission, vision, goals

answer

You can use the outcome of the _____ along with the company's _____, _____, and _____ to determine Strategy. Bear in mind that you may need to reconsider _____ after the SWOT.

question

accomplish, external, skills, abilities, culture

answer

Take what you learned from the external and internal parts of the SWOT analysis and look at it in light of what the company is trying to _____, the nature of the _____ environment, the _____ and _____ of the company, and the company's ______.

question

corporate strategy

answer

asks what business or businesses do we want to be in and what relationship do we want to have among those businesses

question

corporate and business

answer

two distinct levels of consideration with Strategy Formulation

question

Porter's Generic Strategies

answer

describe general approaches to competing - broad categories of Product/Market and Value Proposition combinations. The specifics associated with any quadrant - i.e. what broad or narrow mean, low cost leadership or differentiation would be achieved - will vary with the industry

question

tactical, operational, implementation plan

answer

Much of the specific implementation of the broadest strategy will be done through _____ and _____ plans. BUT you still need to create an _____ to identify key areas, resources needed, targets, etc.

question

aligned, broader, revisiting

answer

As tactical and operational plans are created, managers need to make sure that they are truly _____ with and implementing the _____ strategy. This may mean ______ this strategy.

question

data, expectations, not met

answer

Monitoring is essential, as managers need to find a way to quantify and image the desired outcome. Then they must establish a system for collecting necessary ______, evaluating results relative to _____, and responding/changing targets if _____.

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