3 Strategic Analysis and Decision Making Flashcards
Ultimate goal of a manager?
Make sure employees are working as efficiently as possible based on their ind strengths and talents to achieve the best results
Define a pluralistic society.
Society where power and influence are SHARED among diff institutions such that they are able to pursue their own interests with some independence
What’s a stakeholder?
People/entities that can affect a business’ practices/policies
T or F: All stakeholders are shareholders, but not all shareholders are stakeholders.
F
All shareholders are stakeholders, but not all stakeholders are not shareholders
Difference between primary and secondary stakeholders?
Primary SH’s engage in ECONOMIC transactions w/ the organization as it provides goods and services to society
Sec SH’s affect the actions of an organization w/o direct economic exchange
Why is Stakeholder Analysis important?
It allows a business to identify the most powerful stakeholders, which may lead to increased resources for your org.
What’s a SWOT analysis?
Analysis that…
- examines the Strengths and Weakness of the org’s internal envir
- examines the Opportunities and Threats based on the org’s external envir
What’s Porter’s Analysis used for?
It’s a tool used to assess the RISK and OPPORTUNITY in a market (market: “anyone who could potentially be the focus of your product/service”)
[important tool for understanding the forces that shape competition within an industry.]
Why’s it difficult for new entrants to get into a particular market? (Porter’s Analysis)
- They have to be able to convince customer’s who’re loyal to other organizations to come to them
- They req investments of large capital
- They don’t have access to distribution channels
- Cost disadvantages (such as having to increase education about market and products)
What can more powerful suppliers do? (Porter’s Analysis)
Raise prices and reduce quality of needed resources/products
What can powerful buyers do? (Porter’s Analysis)
Force prices down and demand higher quality products
What does a threat of substitutes do within an industry? (Porter’s Analysis)
Limits the price that industry can charge for its products
3 forms of industry concentration?
- monopoly (total control of the industry)
- duopoly
- fragmented
Why is it important for pharmacies to offer more than just medications?
To differentiate themselves from other pharmacies, and hence give potential customers another reason to patronize them
What happens if diff organizations’ products are not that diff from e/o? (Porter’s Analysis)
Increased rivalry > customers will go to the place that sells the cheapest product
An org’s strategic plan should…(3)
- reflect org’s PURPOSE (e.g. prevent disease X in the public)
- represent the interests of stakeholders
- consider the org’s human capital and other resources
Who would be the best people to ask about what an organization needs when it comes to an org’s strategic plan? Why?
Managers and employees > They’re directly involved w/ the org’s day-to-day operations, and so they would have a v. good idea of what’s needed
At the end of the day, the what should strategic plan do for an organization?
Achieving the org’s vision and mission
An org’s MISSION describes…
the purpose of the org
An org’s VISION describes…
the aspirations of the organization
An org’s VALUES describe…
the central priorities of the org
Why should employees be part of an org’s decision making?
- They’re likely to have info and ideas that’ll help make sound decisions
- Involves employees such that they feel directly invested in the org’s success
Distinguish b/w actions that can improve and reduce quality decision making:
- “Sleeping on it” vs. making decision too hastily
- seeking outside consultation vs. doesn’t
- Using accurate facts vs. intuition
What does “performance-expectations gap” refer to?
A difference between what stakeholders expect and what an org is actually doing
What will happen if a pt expects a pharmacist to sit down w/ them and counsel them when they receive a drug, but when they actually go, the pharmacist doesn’t do this?
The performance-expectations gap will widen/get larger
An organization’s goals should be SMART. This means that they should be…
Specific Measurable Acceptable Realistic Time-based
Why should a strategic plan allow for fluidity or deviation?
In case your strategy isn’t as effective as you planned, and hence you need to alter your approach to achieve objectives
When communicating the plan, communication should include…
- Clear and straightforward description of the actions to be taken
- the timeline to complete the plan
- the outcomes expected
- the resources available
Distinguish b/w the expectations of managers and leaders.
Managers have more conservative, short-term expectations
Leaders have grander, long-term expectations
