ch 10

Question 1

define strategic management

Answer 1

planning what org will do to succeed, how to attract and satisfy customers, achieve long term goals

Question 2

define business model

Answer 2

how company will make money
- if company can make money
- if customers value what company provides

Question 3

importance of strategic management

Answer 3

higher performance
adapt to enviro changes

Question 4

define core competencies

Answer 4

orgs major value making skills, capabilities, resources the determine competitive advantage

Question 5

strong org culture

Answer 5

everyone understands org but harder to make changes

Question 6

describe strategically appropriate culture

Answer 6

supports firm strategy

Question 7

actions included in using leadership
for strategy implementation

Answer 7

persuade and motivate

Question 8

HR strategy implementation

Answer 8

recruit employees
promos, transfers, training
layoffs, recalls

Question 9

using info to control employees
strategy implementation

Answer 9

pay/reward systems
budget allocations
rules

Question 10

3 org structure decisions in
strategy implementation

Answer 10

making teams
centralize/decentralize
facility and task design

Question 11

concentration
growth strat

Answer 11

primary line of business
increase products or markets

Question 12

BACKWARD vertical integration
growth strat

Answer 12

become our own supplier

Question 13

FORWARD vertical integration
growth strat

Answer 13

be our own distributor
control outputs

Question 14

horizontal integration
growth strat

Answer 14

combine with competitors

Question 15

RELATED diversification
growth strat

Answer 15

combine with firms in related industries

Question 16

UNRELATED diversification
growth strat

Answer 16

combine with firms in unrelated industries

Question 17

stability org strat

Answer 17

no changes
not further ahead or further behind

Question 18

renewal org strat

Answer 18

address performance weaknesses
cut costs and restructure org

Question 19

RETRENCHMENT renewal
org strat

Answer 19

short run for minor issues
stabilize, revive

Question 20

TURNAROUND renewal
org strat

Answer 20

for when performance is really bad

Question 21

3 business levels

Answer 21

second level of pyramid

consumer products, digital media, financial services

Question 22

5 business function levels

Answer 22

bottom of pyramid

research and dev, manufacturing, marketing, HR, finance

Question 23

star

Answer 23

high growth
high market share

Question 24

cash cow

Answer 24

low growth rate
high market share

Question 25

question mark

Answer 25

high growth low market share sell off or make a star

Question 26

dog

Answer 26

low growth rate low market share sell off or

Question 27

define competitive strategy

Answer 27

focus on how org will compete in each business

Question 28

role of competitive advantage

Answer 28

use what sets us apart to do better

Question 29

quality competitive advantage

Answer 29

better than competitors brings loyal customers

Question 30

design thinking competitive advantage

Answer 30

approach managerial problems w designer mindset

Question 31

social media competitive advantage

Answer 31

help workers and customers connect reduce costs or increase rev

Question 32

who is michael porter

Answer 32

made many ideas about strategic management and sustaining a competitive advantage

Question 33

5 forces model things that determine how threatened our business is

Answer 33

threat of new entrants threat of substitutes buyer bargaining power bargaining power of suppliers current rivalry

Question 34

define threat of new entrants

Answer 34

how hard it would be for new competitor to enter industry

Question 35

define threat of substitutes

Answer 35

which customers are likely to buy sub product

Question 36

define buyer bargaining power

Answer 36

how much customers hold over firms

Question 37

define supplier bargaining power

Answer 37

supplier influence over firms

Question 38

define current rivalry

Answer 38

industry growth, demand changes, product diffs, determine competitiveness among firms

Question 39

cost leadership competitive strat

Answer 39

do all to cut costs

Question 40

differentiation competitive strat

Answer 40

unique offerings valued by many customers quality, service, reputation, design

Question 41

focus competitive strat

Answer 41

choose cost or differentiation strat in narrow niche

Question 42

functional competitive strat

Answer 42

strategy adopted by individual depts. to achieve competitive advantage in their areas

Question 43

strategic management issues

Answer 43

need for strategic leadership need for strategic flexibility

Question 44

define strategic leadership

Answer 44

leadership must be flexible and creative in their strategies

Question 45

define strategic flexibility

Answer 45

respond quickly when strat isn’t working or enviro changes

Question 46

e business org strat

Answer 46

digitizing tasks to cut costs

Question 47

clicks and bricks

Answer 47

digital and traditional business parts integrated

Question 48

customer service org strat

Answer 48

give what customers want and communixare

Question 49

innovation org strats

Answer 49

coming up with new things combining old things in new ways

Question 50

pros of being an innovator

Answer 50

industry leader reputation control scarce resources 1st to build customer loyalty

Question 51

cons of being an innovator

Answer 51

uncertain where tech and market will go risk of competitor imitation risky high costs