Ch2 Strategy, Organizational Design And Effectiveness Flashcards
Define mission
A mission is an officially stated goal which describes the organization’s vision, its shared values and beliefs, and its reason for being.
What are the two types of goals? describe them.
Officially stated goals which is essentially the mission And operative goals which is what the organization actually pursues
List some examples of operative goals
Overall performance (profitability) Resources Market (market share) Employee development (Training, promotion, safety, and growth) Innovation and change Productivity
Why shouldn’t organization state their goals?
Because goals provide legitimacy, guidance, motivation, and measures
List and describe porters competitive strategies
Differentiation: differentiation strategy is used to distinguish products or services from others in the industry
Low-cost leadership: low-cost leadership tries to increase market share by emphasizing low cost compared to competitors
Focus: the organization concentrates on a specific regional market or buyer group
Draw Porter’s competitive strategy matrix
X axis: competitive advantage
Y-axis: competitive scope
Low-cost leadership has low-cost and broad scope
Differentiation is unique and has broad scope
Focused low-cost leadership has a low-cost and narrow scope
Focus differentiation is unique and has narrow scope
Describe Miles and Snow’s strategy typology
Managers seek to formulate strategies will be congruent with the external environment. The four strategies that can be developed are the prospector, the defender, the analyzer, and the reactor.
Describe the prospecter strategy
The Prospecter strategy is to innovate, take risks, seek new opportunities, and grow.
Describe the defender strategy
The defender strategy is concerned with stability by holding on to current customers.
Describe the analyzer strategy
The analyzer strategy tries to maintain a stable business while innovating on the periphery.
Describe the reactor strategy
The reactor strategy involves responding to environmental threats and opportunities in an ad hoc fashion.
Define strategy
Strategy is an approach to business in the foreseeable future. It involves interacting with the competitive environment to achieve organizational goals.
contingency effectiveness approaches
Resource-based approach
internal process approach
goal approach
Describe the resource-based approach
Resource-based approach processes effectiveness by observing beginning the process of evaluating whether the organization effectively tends resources necessary for high-performance
Describe internal process approach
Internal process approach looks at internal activities and assesses effectiveness by indicators of internal health and deficiency.