Mgmt Ch.6 Exam #2 – Flashcards
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Strategy
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a large scale action plan that sets the direction of an organization
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Grand Strategy
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After an assessment of current organizational performance, then explains how the organizations mission is to be accomplished.
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Strategic implementation
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putting strategic plans into effect
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Strategic Control
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consists of monitoring the execution of strategy and making adjustments if necessary
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Competitive intelligence
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means gaining information about ones competitors activities so that you can anticipate their moves and react appropriately
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A business ___ represents an "educated guess" about what must be done and how it must be done in the short-term and the long term for the benefit of the company
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Strategy
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Which strategy explains how an organizations mission is to be accomplished?
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Grand Strategy
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The process of choosing among different strategies and altering them to best fit the organizations needs is called
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Strategic control
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Putting strategic plans into effect is called
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Strategy implementation
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Sam consistently monitors the execution of strategy and makes adjustments, when necessary. This is an example of strategic _____
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Control
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Environmental scanning
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carefully monitoring of an organizations internal and external environments to detect early signs of opportunities and threats that may influence the firms plans
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Situational Analysis aka SWOT
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a search for the Strengths, Weaknesses, Opportunities and Threats affecting the organization
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Organizational Strengths
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the skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission
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Organizational weaknesses
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the drawbacks that hinder an organization in executing strategies in pursuit of its mission
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Organizational opportunities
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environmental factors that the organization may exploit for competitive advantage
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Organizational threats
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environmental factors that hinder an organizations achieving a competitive advantage
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Forecast
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is a vision or projection of the future
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Contingency Planning aka Scenario planning and scenario analysis
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the creation of Alternative hypothetical but equally likely future conditions
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Porters 4 competitive strategies (aka 4 generic strategies)
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1. Cost leadership 2. Differentiation 3. Cost-focus 4. Focused-differentiation
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Cost leadership strategy
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keep the costs and hence prices, of a product or service below those of competitors to target a WIDE market
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Differentiation strategy
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offer products or services that are of unique and superior value compared with those of competitors but to target a WIDE market
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Cost-focus strategy
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keep the costs and hence prices of a product or service below those of competitors and to target a NARROW market
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Focused-differentiation strategy
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offer products or services that are of unique and superior value compared to those of competitors and to target a NARROW market
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Single product strategy
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company makes and sells only one product within its market
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Diversification
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operating several businesses in order to spread the risk
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BCG Matrix
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means of evaluating strategic business units on the basis of 1. their business growth rates and 2. their share of the market.
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Execution
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not simply tactics, it is a central part of any company's strategy. Consists of using questioning, analysis and follow-through to mesh strategy with reality, align people with goals and achieve the results promised.
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_______ analysis is a search for the strengths, weaknesses, opportunities and threats affections the organization
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SWOT
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The draw backs that hinder an organization in executing strategies in pursuit of its mission are called ______
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Organizational weaknesses
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When a manager analyzes the external environment looking for issues that might hinder the organizations ability to achieve a competitive advantage, the manager is looking for ________
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organizational threats
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Contingency planning is also known as
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Scenario planning or scenario anaylsis
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A _____ is a vision or projection of the future
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forecast
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The process of spreading risk by operating a number of businesses is called _______
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Diversification, the products can be related or unrelated
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Business growth rate, as used in the BCG matrix is concerned with how fast the _____ is(are) growing
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entire industry
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_____ is the process that helps align the last 2 phases of the strategic management process: strategic implementation and strategic control
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Execution
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the _____ is a means of evaluating a strategic business units on the basis of their business growth rates and their share of the markey
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BCG matrix
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Experiencing new governmental regulations that reduce the availability of raw materials would be considered an organizational ______ in a SWOT analysis
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threat
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Top, middle and front-line management are all involved in which of the following:
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Strategic Management
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_____ means the sum is greater than the parts
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Synergy
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3 key principles underlie strategic positioning
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Few needs, many customers. Broad needs, few customers Broad needs, many customers.
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Business plan
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outlines the firms goals, the strategy for achieving them and the standards for measuring success
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Strategic Management
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process that involved managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals
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An organization should adopt strategic management and strategic planning for 3 reasons
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1. Provide direction and momentum 2. Encourage new ideas 3. Develop a sustainable competitive advantage.
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Competitive Advantage
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ability of an organization to produce goods or services more effectively than its competitors, thereby outperforming them
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Strategic Positioning
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attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company.
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5 Steps of the Strategic Management
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1. Establish the mission ; vision 2.. Establish grand strategy w/ environmental scanning. 3. Formulate the strategic plans ( Using Porter) 4. Carry out the strategic plans 5. Maintain strategic control
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Stability strategy
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grand strategy that involves little or no significant change
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Defensive strategy Or retrenchment strategy
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is a grand strategy that involves reduction in the organizations efforts.
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SMART Goals
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Specific Measurable Attainable Results-oriented TargetDates
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Strategic planning is not effective unless
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it can be translated into lower level plans. This means that top managers need to check on possible road blocks within the organizations structure and culture and see if the right people and control systems are available to execute the plans.
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Strengths ( internal strengths)
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-Faculty teaching and research abilities -High-ability students -Loyal Alumni -Strong interdisciplinary Programs
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Weaknesses (internal weaknesses)
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- Limited programs in business - High teaching loads. - Insufficient racial diversity - Lack of high-technology infrastructure
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Opportunities (External opportunities)
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- Growth in many local skilled jobs - many firms give equipment to colleges - local minority population increasing - highschool students take college classes
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Threats (External threats)
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-Depressed state and national economy -Highschool enrollements in decline -Increased competition from other college -Funding from all sources at risk
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What attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company?
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Strategic Positioining
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What are 3 specific reasons why organizations should adopt strategic management and strategic planning?
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Encourages new Ideas, Provides direction and momentum and it develops a sustainable competitive advantage
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A ____ advantage is the ability of an organization to produce goods or services more effectively than its competitors do, thereby outperforming them
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Competitive
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The ____Strategy is a grand strategy that involves little or no significant change from the current situation
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stability
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When a company reduces its workforce due to decreased demand for its products or services, it is involved in a ____strategy
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defensive
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The public sources for gaining competitive intelligence
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Industry-gossip from salespeople and marketers, competitors published annual reports, competitors press releases and competitors reports filed with the SEX and posted on EDGAR
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Rolls Royce corporation has a superior reputation. This is an example of an organizational ______
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strength
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Trying to use obsolete technology in outdated facilities would be considered an organizational_____ in a SWOT analysis
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weakness
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Identifying an emerging market where there are currently no competitors would be considered an organizational _____ in a SWOT analysis
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opportunity
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Environmental factors that the organization may exploit for competitive advantage are _______
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opportunities
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A _____ statement describes a companys long-term direction and strategic intent
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vision
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External environmental factors that hinder an organizations achieving a competitive advantage are ______
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organizational threats
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In a ____ strategy a company makes and sells only one product within its market
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single-product
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the process of monitoring an organizations internal and external environments to detect early signs of opportunities and threats that may influence the firms plans is called:
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environmental scanning
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3 core processes of business include
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People proccesses, Operational Processes and Strategic processes
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A _____ Strategy involves expansion of some area of a business
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growth
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Leadership and organizational _____ are the foundation upon which the execution phase of any strategic plan is based
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Culture
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A business ____ represents an educated guess about what must be done and how it must be done in the short-term and the long-term for the benefit of the company
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Strategy
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When a manager analyses the external environment, looking for issues that might hinder the organizations ability to achieve a competitive advantage, the manager is looking for_________
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organizational threats
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Sustainable competitive advantage occurs when an organization is able to stay ahead of competition in which areas:
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Effectiveness, Quality, being responsive to customers and innovation
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Trend analysis
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hypothetical extension of a past series of events into the future
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Contingency Planning aka scenario planning
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creation of alternative hypothetical but equally likely future conditions
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Porters 5 competitive forces
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that business level strategies originate in 5 primary competitive forces in the firms environment: 1. threats of new entrants 2. bargaining power of suppliers 3. bargaining power of buyers 4. threats of substitute products or services 5. rivalry among competitors
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Porters 4 competitive strategies
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Cost-leadership-wide Differentiation-wide Cost-focus- narrow Focused-differentiation- narrow
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Single product strategy-
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company makes and sells only 1 product within its market
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diversification
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operating several businesses in order to spread the risk
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Unrelated diversification
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operating several businesses under one ownership that are not related to one naother
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Related diversification
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in which an organization under one ownership operates separates businesses that are related to one another
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synergy
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the economic value of separate, related business under one ownership and management is greater together than the businesses are worth separatly
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BCG matrix
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is means of evaluating strategic business units on the basis of 1. their business growth rates and 2 their share of the market
