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Organizational Management > Ch 7 > Flashcards

Ch 7 Flashcards

1
Q

Strategy

A

describes “how” organizational goals are to be achieved. it refers to the method or plan of action that describes resource allocation and activities for attaining goals

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2
Q

Strategic Management

A

process of formulating and implementing strategies that will help the organization exploit its core competencies, build synergies, and deliver value to gain sustainable competitive advantage

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3
Q

Nepolian

A 
great strategist
win battles with less supplies
1805 fighting Russian enemy 
created strategy forced enemy to spread out
kept reserve back
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4
Q

Want 2 things out of Strategy

A

use limited RESOURCES to have

the maximum IMPACT

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5
Q

Impact

A

competitive advantage

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6
Q

Competitive advantage

A
  • core competencies
  • synergy
  • value
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7
Q

Core Competitencies

A

identify strengths

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8
Q

Synergy

A

bring together skills; avoid duplication more efficient; utilize resources in best possible manner; use other facilities and build on eachother

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9
Q

Value

A

how we deliver profits

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10
Q

Levels of Strategy

A
  • corporate
  • business division
  • functional
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11
Q

Corporate

A
  • help define market
  • expands across industries
    ex. PMG, Samsung, General Electric
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12
Q

Business Divison

A
  • how we navigate the market

- 1 industry (industry specific)

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13
Q

Functional

A
  • how operationalize
  • within organization
  • ex. HR
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14
Q

Focus Cost

A

small market; ex. jumping beans sells kids clothes

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15
Q

Differential Focus

A

trendy clothes for kids

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16
Q

Best Buy

A
  • bought high end brand
  • strategic alliance with other company
  • 1966 customers more choice
  • differentiation: customer service ex. geek squad, online development
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17
Q

Corporate strategies

A

-sets long-term direction for the total enterprise
grow-utilizes alliances
joint venture
-growth (multiple industries; Samsung)
-retrenchment (cut down on business)
-international (global)
-cooperation (joint-venture; strategic alliances)–get together with other company

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18
Q

Business or Competitive Strategies

A

-identifies how a division or strategic business unit will compete in its product or service domain
-Target Scope vs Advantage Low Cost Prod . Uniqueness
-Broad (Industry Wide) Cost Leadership Strategy . …………………………………………………………………Differentiation Strategy
-Narrow (Market Segment) Focus Strategy (low cost) ……………………………………………………………..Focus Strategy
………………………………………………………………….(differentiation)

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19
Q

Functional Strategies

A

guides activities within on specific area of operations

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20
Q

Circuit City

A

1949 started 1970s enjoyed status quo

  • cost strategy laid off most experienced employees
  • sold products at discounts
  • employees not trained
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21
Q

Wal-Mart

A
  • outskirts of land b/c its cheaper
  • by pass traffic (big volumes)
  • Functional Strategy: makes different what they do
  • Same business strategy;; operationally different btw Circuit City
  • needs to increase operations research one to first to start JIT
  • invested a lot; negotiate; distribution cost how to make things go down
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22
Q

Kmart

A
  • cut costs by giving discounts
  • more customers bargaining with suppliers
  • no electronic system of what is selling
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23
Q

How do Firms make strategic choices to gain competitive advantage?

A

the strategic management process

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24
Q

Strategic Management Process

A

1) strategic analysis
2) Strategy formulation
3) strategy implementation

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25
Q

Strategic Analysis

A

First, Analyze mission, vision, and goals

Next, Analyze internal and external environment–what do customers want?

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26
Q

Mission

A
  • WHO we are?
  • fundamental purpose
  • company philosophy
  • company identity
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27
Q

Vision

A
  • WHERE we want to be?
  • long term view
  • what we want to achieve?
  • direction and aspiration
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28
Q

Goals

A
  • WHAT specifically we need to achieve?
  • SMART goals
  • -continually resetting
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29
Q

SWOT Analysis

A

internal and external

  • External: Opportunities; threats
  • Internal: strengths; weaknesses
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30
Q

BCG (Boston Consulting Group)

A
  • internal (portfolio)

- ?; *; dogs, $ cows

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31
Q

Porter’s 5-Forces Model

A
  • Potential new entrants
  • Suppliers
  • Customers
  • Substitute products
  • Competition
32
Q

Strategy Implementation

A

implementation–> control

33
Q

Implementation

A
  • operational plans
  • assign responsibilities
  • decide reward structures
  • allocate resources
  • decide time line
  • fit organizational structure and activities to the environment
34
Q

Control

A
  • reporting mechanisms
  • -how effective have strategies been?
  • -what adjustments, if any, are necessary?
35
Q

To be successful

A

managers need to learn the art of planning and strategic management

36
Q

Picking right strategy

A

equally critical

37
Q

Planning and Strategizing

A

need to be based on thorough SWOT analysis

38
Q

Plans and Strategies

A

need to be flexible

39
Q

Implementation

A

should be fast and efficient to achieve planned goals

40
Q

GM Corporate Level Strategy (growth)

A
  • concentration: Auto Industry
  • Diversification: ACDelco; GM Card; Onstar
  • Vertical Integration: owning distribution and part companies 60%
41
Q

GM CLS (Internationalization)

A

transnational strategy: operations in more than 120 countries woldwide

42
Q

GM CLS (Cooperation)

A

Strategic Alliance: GM and its strategic partners produce cars and trucks in 34 countries

  • -GM Korea Company
  • -Shanghai Gneral Motors Co
  • -SAIC-GM-Wuling Automobile Co
  • -SAIC GM Investment Liminited
43
Q

GM CLS (Retrenchment and Restructing)

A
  • divested in unprofitable partnerships
  • sold unprofitable brands
  • reduced suppliers
44
Q

GM Initial Strategy: Differentiation

A

“a car for every purse and purpose”
controlled more than half of car market
22% in 2008

45
Q

GM Focus Now

A

Low-Cost Strategy

  • less differentiation
  • moving from 8-4 brands in the US
  • Stronger focus on core brands
  • more than a truck and SUV Co
  • Focus on fuel-efficient cars and sedans
46
Q

GM Manufacturing

A

Low Cost

  • plant closures
  • sustainability
  • decrease operational costs
  • standard parts and equipment
47
Q

GM Human Resource

A

Low Cost

48
Q

GM Marketing

A

low cost

  • reducing their marketing budget by decreasing the amount advertisements they put out there buy making those advertisements have a bold statement and a lasting image in the customers minds
  • comparing of products in their commercials and on paper
49
Q

strategic formulation

A

process of crafting strategy

50
Q

mission

A

organizations reason for existence in society

51
Q

operating objectives

A

specific results that organizations try to accomplish

52
Q

Porter’s competitive strategies

A

differentiation
cost leadership
focused differentiation
focused cost leadership

53
Q

differentiation

A

make products that are unique and different

54
Q

cost leadership

A

produce at lower cost and sell at lower price

55
Q

focused differentiation

A

use differentiation and target needs of a special market

56
Q

focused cost leadership

A

use cost leadership and target needs of a special market

57
Q

BCG Matrix

A

analyzes business opportunities according to market growth rate and market share

58
Q

stars

A

higher market shares in high growth markets;; produce large profits through substantial penetration of expanding markets;; preferred strategy is growth

59
Q

cash cow

A

have high market shares in low-growth markets;; they produce large profits and a strong cash flow;;

60
Q

Question Marks

A

low market shares in high growth markets; they may not generate much profit at the moment. the upside potential is there b/c of the growing markets

61
Q

Question Marks

A

low market shares in high-growth markets;; although they may not generate much profit at the moment, the upside potential is there because of the growing markets

62
Q

Dogs

A

low market shares in low growth markets;; they produce little if any profit, and they have low potential for future improvement

63
Q

Which is the best question to ask to start the strategic management process?

A

What is our mission?

64
Q

The ability of a business firm to consistently outperform its rivals is called

A

Competitive Advantage

65
Q

GE is a complex conglomerate that owns many firms operating in very different industries. The strategies pursued for each individual firm within GE umbrella would best be called ___ level strategies

A

Business

66
Q

An organization that is downsizing by cutting staff to reduce costs can be described as pursuing a ___ strategy

A

Retrenchment

67
Q

When you buy music downloads online, the firm selling them to you is engaged in which type of e-business strategy?

A

B2C

68
Q

The alliances that link firms in supply chain management relationships are examples of how businesses can use ___ strategies

A

Cooperation

69
Q

Among the global strategies that international businesses might pursue, the ___ strategy most directly tries to customize products to fit local needs and cultures in different countries

A

Multidomestic

70
Q

If Google’s top management were to announce that the firm was going to buy Federal Express, this would be a strategy of growth by ___

A

diversification

71
Q

___ are special strengths that an organization has or does exceptionally well and that help it outperform competitiors

A

Core Competencies

72
Q

A ___ in the BCG Matrix would have a high market share in a low-growth market

A

Cash COw

73
Q

In Porter’s five forces model, which of the following conditions is most favorable from the standpoint of industry attractiveness?

A

Low bargaining power of suppliers

74
Q

The two questions Porter asks to identify the correct competitive strategy for a business or product line are: 1 what is the market scope? 2 what is the __?

A

source of competitive advantage

75
Q

When Coke and Pepsi spend millions on ads trying to convince customers that their products are unique, they are pursuing what Porter calls a ___ strategy

A

differentiation

76
Q

A firm that wants to compete with rivals by selling a very- low-priced product in a broad market would need to successfully implement a ___ strategy

A

cost leadership

77
Q

In addition to focusing on strategy implementation and strategic control, the responsibility for strategic leadership of an organization involves success with ___

A

the process of continuous change

Organizational Management (9 decks)

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