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Mgmt Ch.6 Exam #2

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