3 Strategic Analysis and Decision Making

Question 1

Ultimate goal of a manager?

Answer 1

Make sure employees are working as efficiently as possible based on their ind strengths and talents to achieve the best results

Question 2

Define a pluralistic society.

Answer 2

Society where power and influence are SHARED among diff institutions such that they are able to pursue their own interests with some independence

Question 3

What’s a stakeholder?

Answer 3

People/entities that can affect a business’ practices/policies

Question 4

T or F: All stakeholders are shareholders, but not all shareholders are stakeholders.

Answer 4

F

All shareholders are stakeholders, but not all stakeholders are not shareholders

Question 5

Difference between primary and secondary stakeholders?

Answer 5

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

Question 6

Why is Stakeholder Analysis important?

Answer 6

It allows a business to identify the most powerful stakeholders, which may lead to increased resources for your org.

Question 7

What’s a SWOT analysis?

Answer 7

Analysis that…

1. examines the Strengths and Weakness of the org’s internal envir
2. examines the Opportunities and Threats based on the org’s external envir

Question 8

What’s Porter’s Analysis used for?

Answer 8

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.]

Question 9

Why’s it difficult for new entrants to get into a particular market? (Porter’s Analysis)

Answer 9

1. They have to be able to convince customer’s who’re loyal to other organizations to come to them
2. They req investments of large capital
3. They don’t have access to distribution channels
4. Cost disadvantages (such as having to increase education about market and products)

Question 10

What can more powerful suppliers do? (Porter’s Analysis)

Answer 10

Raise prices and reduce quality of needed resources/products

Question 11

What can powerful buyers do? (Porter’s Analysis)

Answer 11

Force prices down and demand higher quality products

Question 12

What does a threat of substitutes do within an industry? (Porter’s Analysis)

Answer 12

Limits the price that industry can charge for its products

Question 13

3 forms of industry concentration?

Answer 13

1. monopoly (total control of the industry)
2. duopoly
3. fragmented

Question 14

Why is it important for pharmacies to offer more than just medications?

Answer 14

To differentiate themselves from other pharmacies, and hence give potential customers another reason to patronize them

Question 15

What happens if diff organizations’ products are not that diff from e/o? (Porter’s Analysis)

Answer 15

Increased rivalry > customers will go to the place that sells the cheapest product

Question 16

An org’s strategic plan should…(3)

Answer 16

1. reflect org’s PURPOSE (e.g. prevent disease X in the public)
2. represent the interests of stakeholders
3. consider the org’s human capital and other resources

Question 17

Who would be the best people to ask about what an organization needs when it comes to an org’s strategic plan? Why?

Answer 17

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

Question 18

At the end of the day, the what should strategic plan do for an organization?

Answer 18

Achieving the org’s vision and mission

Question 19

An org’s MISSION describes…

Answer 19

the purpose of the org

Question 20

An org’s VISION describes…

Answer 20

the aspirations of the organization

Question 21

An org’s VALUES describe…

Answer 21

the central priorities of the org

Question 22

Why should employees be part of an org’s decision making?

Answer 22

1. They’re likely to have info and ideas that’ll help make sound decisions
2. Involves employees such that they feel directly invested in the org’s success

Question 23

Distinguish b/w actions that can improve and reduce quality decision making:

Answer 23

1. “Sleeping on it” vs. making decision too hastily
2. seeking outside consultation vs. doesn’t
3. Using accurate facts vs. intuition

Question 24

What does “performance-expectations gap” refer to?

Answer 24

A difference between what stakeholders expect and what an org is actually doing

Question 25

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?

Answer 25

The performance-expectations gap will widen/get larger

Question 26

An organization’s goals should be SMART. This means that they should be…

Answer 26

Specific
Measurable
Acceptable
Realistic
Time-based

Question 27

Why should a strategic plan allow for fluidity or deviation?

Answer 27

In case your strategy isn’t as effective as you planned, and hence you need to alter your approach to achieve objectives

Question 28

When communicating the plan, communication should include…

Answer 28

1. Clear and straightforward description of the actions to be taken
2. the timeline to complete the plan
3. the outcomes expected
4. the resources available

Question 29

Distinguish b/w the expectations of managers and leaders.

Answer 29

Managers have more conservative, short-term expectations

Leaders have grander, long-term expectations