Basic Planning Process Flashcards
What is a situational analysis
A process planners use to gather, interpret, and summarize all information relevant to the planning issue under consideration.
What are the steps followed for the specific formal decision-making process?
Situation analysis
Alternative goals and plans
Goal and plan selection
Implementation
Monitor and control
What are the steps followed for the General decision-making stages?
Identifying and diagnosing the problem
Generating alternative solutions
Evaluating alternatives
Making the choice
Implementing
Evaluating
What is a mission
An organization’s basic purpose and scope of operations
What is a strategic vision
The long-term direction and strategic intent of a company.
A strategic vision defines what?
The strategic vision points to the future—where the organization is headed and what it can become.
What are stakeholders
Groups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies.
What is included in the macroenvironment
Includes legal, political, economic, technological, demographic, social, and natural factors that generally affect all organization
What is competitive environment
The immediate environment surrounding a firm; includes suppliers, customers, rivals, and the like.
What is the purpose of an SWOT
Helps managers summarize the relevant, essential facts from their external and internal analyses.
It can identify the primary and secondary strategic issues the organization faces.
Used to formulate a strategy to pursue opportunities by capitalizing on the organization’s strengths, neutralizing its weaknesses, and countering potential threats.
What is a core capability
A unique skill and/or knowledge an organization possesses that gives it an edge over competitors.
What is a competence?
A core competence typically refers to a set of skills or expertise in some activity rather than physical or financial assets.
Describe what Porter’s Five Forces Model
Help managers analyze the competitive environment and adapt to or influence the nature of their competition.
What are the elements of Porter’s Five Forces Model
Competitors
New Entrants
Substitutes and Complements
Suppliers
Customer
How is Porter’s Five Forces Model used in the strategic planning process
Helps managers analyze the competitive environment and adapt to or influence the nature of their competition.
What is Forward integration
A strategy where a firm gains ownership or increased control over its previous customers (distributors or retailers).
What is Backward Integration
A strategy where a firm gains ownership or increased control over its previous suppliers.
What a horizontal integration
Where a corporate usually acquires or mergers with a competitor in the same industry.
When Forward integration strategy is effective
When few quality distributors are available in the industry.
When distributors or retailers have high profit margins.
When distributors are very expensive, unreliable or unable to meet firm’s distribution needs.
The industry is expected to grow significantly.
There are benefits of stable production and distribution.
The company has enough resources and capabilities to manage the new business.
When is Backward integration strategy is most beneficial
The firm’s current suppliers are unreliable, expensive or cannot supply the required inputs.
There are only a few small suppliers but many competitors in the industry.
The industry is expanding rapidly.
The prices of inputs are unstable.
Suppliers earn high-profit margins.
A company has the necessary resources and capabilities to manage the new business.
