business strategy Flashcards
what is planning
Planning inlucdes defning goals, establihing strategy, and develloping plans to coordinate activities. Types of plans include strategic, functional, and tactical
what is organizing
orgainizing includes determining what tasks to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. Also includes recruiting, selecting, training, and performance evaluation
what is controlling
controlling is the process of monitoring performance, comparing it with goals, and correcting any significant deviations
what is leading
leading includes motivating employees, directing the activities of others, selecting the most effective communication channel, and resolving conflicts
planning is the ___ Role of manangment
PRIMARY
As plans are developed from strategi to tactical to operation , ____ goals become more specific
planning
components of the internal environment
Management's Vision Mission and values culture people and workforce diversity technology physical assets intellectual property
what are the general environmental factors
technological innovations
economic business cycle
unemployment rates and labor costs
societal and demographic trends
why is planning important
- Provides direction and a bais for coordination for everyone in the organization. Helps minimize waste and redundancy
- Reduces uncertainty by developing a better understanding of the firm’s external environment
- establishes goals from broad firm-wide objectives to individual productivity standards
- Involves and engage all levels of the organization (results: higher job satisfaction)
what is residual uncertainty
the truly unknowable with respect to external environment uncertainty factors
what is a hierarchical org strucuture
it is a tall strucuter with numerous layers and inefficient bureaucracies, senior managers make most operational decisions and authority must be gained from several layers up before taking actions. informaiton flows are generally from the top down. works well in stable environment with little variability
what is a flat org structure
it is a networked strucutre where front-line employees are empowered to make a range of decisions. Information flows from the top down and from the bottom up in a flat structure. Few levels of middle management. Decentralized decision-making planning critical in dynamic environments.
name all the types of managers
Top managers, Middle managers, First-line managers, (some organizations have “Team Leaders” at the bottom)
strategic planning is the responsibility of
Senior and middle managers
functional structures tend to be more ___ than dividisonal structure
efficient
businesses organized by function have very few ____
product lines
functional plans are strategic plans focused on implementing the SBU’s ___
strategies
Functional plans are
aligned to the business unit level planning
are highly interrelated across the SBU
have shorter planning horizons than corporate and SBU plans but typically extend beyond the upcoming fiscal year
drive budget development and staffing plans
Tactical / Operational plans are
narrow, specific impact the firm
allocation of specific resources to specific tasks or operations
short planning horizons
S.M.A.R.T
Specific Measurable and quantifiable challenging but Attainable Relevant to the situation clear as to Time frames
Competitive advatage is ___ absolute but judged relative to the average profitability of an industry or to a firm’s direct competitors
NOT
A good strategy enables a firm to ahcieve superior performance. It consists of three elements
A diagnosis of the competitive challenge
a guiding policy to address the competitive challenge
A set of coherent actions to implement the firm’s guiding policy
competitve advantage is
temporary
cost leadership
becoming the lowest-cost producer in an industry. pricing at or below industry average while leveraging a low cost
differentiation
competitive advantage achieved as long as economic value crated is greater than competitors
attempting to be unique in an industry within a broad market. Making products unique to allow the company to charge a premium price yet keeping the cost of that differentiation less than the pricing differential.
focus strategy
Attempting to establish either a cost leadership or differentiation advantage but focused on a narrow market segment
Vision state is __ specific enough to drive strategic planning
NOT
Often a mission statemtn will have ither a __ focus or a ___ ___ focus
product, customer market
Core values
the guiding principles of the firm…support the company’s vision, shape the culture, and reflect the company’s identity and personality.
There is not a universal set of core values.
