Chapters 1-4 – Objectives – Strategic Management – Flashcards

Unlock all answers in this set

Unlock answers
question
What is strategic management?
answer
Management consisting of the analysis, decisions, and actions an organization undertakes to create and sustain competitive advantages.
question
What are the four key attributes of strategic management?
answer
1. Concern with overall objectives 2. involves multiple stakeholders 3. Incorporates short and long term perspectives 4. recognizes tradeoffs between effectiveness and efficiency.
question
Effectiveness and Efficiency
answer
Effectiveness is "doing the right thing" and efficiency "doing things right"
question
What are three processes of strategic management?
answer
Analysis, formulation, and implementation
question
Ambidexterity
answer
the challenge managers face of both aligning resources to take advantage of existing product markets as well as proactively exploring new opportunities.
question
Corporate Governance
answer
Essential to ensuring that the actions of a firm's management are consistent with the goals of its owners.
question
Who are the primary participants of corporate governance?
answer
1. Shareholders (owners) 2. Management (led by the chief executive officer) 3. Board of directors (elected by the shareholders to represent their interests.
question
Symbiosis
answer
Various stakeholder's interests are considered interdependent and can be attained simultaneously.
question
Zero Sum Game
answer
Various stakeholder's compete for the organization's resources: the gain of one individual or group is the loss of another individual or group.
question
Social responsibility
answer
Expectation that businesses or individuals will strive to improve the overall welfare of society.
question
Shared Value
answer
Policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in which it operates.
question
The Triple Bottom Line
answer
The assessment of a firm's financial, social, and environmental performance.
question
Describe the three types of leaders.
answer
Local Line leaders - who have significant profit-and-loss responsibility. Executive leaders - who champion and guide ideas, create a learning infrastructure, and establish a domain for taking action. Internal networkers - who, although they have little positional power and formal authority, generate their power through the conviction and clarity of their ideas.
question
In order to be meaningful, Strategic Objectives need to be ...
answer
Measurable, specific, realistic, and timely
question
Strategic Objectives
answer
A set of organizational goals that are used to operationalize the mission statement and that are specific and cover a well-defined time frame.
question
Vision
answer
Organizational goal(s) that evoke(s) powerful and compelling mental images.
question
Mission statement
answer
a set of organizational goals that include both the purpose of the organization, its scope of operations, and the basis of its competitive advantage.
question
Hierarchy of goals
answer
organizational goals ranging from, at the top, those that are less specific yet able to evoke powerful and compelling mental images, to, at the bottom, those that are more specific and measurable.
question
Romantic view of leadership
answer
Situations in which the leader is the key force determining the organization's success - or lack thereof.
question
External control view of leadership
answer
Situations in which external forces - where the leader has limited influence - determine the organization's success.
question
Strategy
answer
The ideas, decisions, and actions that enable a firm to succeed.
question
Competitive advantage
answer
A firm's resources and capabilities that enable it to overcome the competitive forces in it's industries.
question
Operational effectiveness
answer
Performing similar activities better than rivals.
question
Intended strategy
answer
Strategy in which organizational decisions are determined only by analysis.
question
Realized strategy
answer
Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences.
question
Strategy analysis
answer
Study of firms' external and internal environments, and their fit with organizational vision and goals.
question
Strategy formultion
answer
Decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain competitive advantage.
question
Strategy implementation
answer
Actions made by firms that carry out the formulated strategy, including strategic controls, organizational design, and leadership.
question
What processes do managers use to develop forecasts?
answer
Scanning, monitoring, and competitive intelligence
question
Environmental Scanning
answer
Surveillance of a firm's external environment to predict environment changes and detect changes already under way.
question
Environmental monitoring
answer
A firm's analysis of the external environment that tracks the evolution of environment trends, sequences of events, or streams of activities.
question
Competitive Intelligence
answer
A firm's activities of collecting and interpreting data on competitors, defining and understanding the industry, and identifying competitors' strengths and weaknesses.
question
Scenarios Analysis
answer
An in-depth approach to environmental forecasting that involves experts' detailed assessments of societal trends, economics, politics, technology, or other dimensions of the external environment.
question
What are the six segments of the general environment?
answer
Demographic, Sociocultural, Political/Legal, Technological, Economic, and Global
question
Demographic Segment
answer
Genetic and observable characteristics of a population, including the levels and growth of age, density, sex, race, ethnicity, education, geographic region, and income.
question
Sociocultural Segment
answer
The values, beliefs, and lifestyles of a society.
question
Political/legal Segment
answer
How a society creates and exercises power, including rules, laws, and taxation policies.
question
Technological Segment
answer
Innovation and state of knowledge in industrial arts, engineering, applied sciences, and pure science; and their interaction with society.
question
Economic Segment
answer
Characteristics of the economy, including national income and monetary conditions.
question
Global Segment
answer
Influences from foreign countries, including foreign market opportunities, foreign-based competition, and expanded capital markets.
question
What are Porter's five competitive forces?
answer
1. The threat of new entrants 2. The bargaining power of buyers 3. The bargaining power of suppliers 4. The threat of substitute products and services 5. The intensity of rivalry among competitors in an industry
question
Value-chain analysis
answer
A strategic analysis of an organization that uses value-creating activities.
question
What are the two activities used in a value-chain analysis?
answer
Primary and Support
question
Primary activities
answer
sequential activities of the value chain that refer to the physical creation of the product or service, its sale and transfer to the buyer, and its service after sale.
question
What are the five generic primary activities?
answer
Inbound logistics, operations, outbound logistics, marketing and sales, and Service
question
Support activities
answer
Activities of the value chain that either add value by themselves or add by themselves or add value through important relationships with both primary activities and other support activities.
question
What are the four generic support activities?
answer
Procurement, technology development, human resource management, and general administration.
question
Resource based view of the firm
answer
Perspective that firms' competitive advantages are due to their endowment of strategic resources that are valuable, rare, costly to imitate, and costly to substitute.
question
What are the four types of tangible resources?
answer
Financial, physical, technological, and organizational
question
What are the three types of intangible resources?
answer
Human, innovation and creativity, and reputation
question
Financial ratio analysis
answer
A technique for measuring the performance of a firm according to its balance sheet, income statement, and market valuation.
question
What are the five different types of financial ratios?
answer
1. Short-term solvency or liquidity 2. Long-term solvency measures 3. Asset management 4. Profitability 5. Market value
question
What are the two approaches of evaluating firm performance?
answer
The inclusion of the analysis of financial resources as well as the interests of multiple stakeholders.
question
What four perspectives are measured for the balanced scorecard?
answer
The customer perspective, the internal business perspective, innovation and learning perspective, and financial perspective.
question
Hard trend
answer
a projection based on measurable facts, events, or objects. It is something that will happen.
question
Slow trend
answer
something that might happen and for which the probability that it might happen an be estimated.
question
Crowdsourcing
answer
practice wherein the internet is used to tap a broad range of individuals and groups to generate ideas and solve problems.
question
Industry
answer
a group of firms that produce similar goods or services.
question
Competitive environment
answer
factors that pertain to an industry and affect a firm's strategies.
question
Economies of scale
answer
decreases in cost per unit as absolute output per period increases.
question
Product differentiation
answer
the degree that a product has strong brand loyalty or customer loyalty.
question
Switching cost
answer
one-time costs that a buyer/supplier faces when switching from one supplier/buyer to another.
question
Complements
answer
products or services that have an impact on the value of a firm's products or services.
question
Strategic groups
answer
clusters of firms that share similar strategies/.
question
What are the three processes organizations follow to build and leverage human capital?
answer
Attracting human capital, developing human capital, and retaining human capital.
question
What are the two types of mechanisms through which social capital will flow?
answer
Closure relationships and bridging relationships
question
Effective collaboration requires overcoming four barriers:
answer
1. The not-invented-here barrier (people aren't willing to provide help) 2. The hoarding barrier (people aren't willing to provide help) 3. The search barrier (people are unable to find what they are looking for) 4. The transfer barrier (people are unable to work with the people they don't know well)
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New