Ch7- Strategy and Strategic Management

Question 1

Strategy

Answer 1

A comprehensive action plan that dictates direction for an organization and guides resource utilization

Question 2

Competitive advantage

Answer 2

Operating in successful ways that are difficult to duplicate

Question 3

Corporate strategy

Answer 3

Directions and guidelines for use of resources

Question 4

Business strategy

Answer 4

Identifies how a strategic business unit will compete in its product or service domain

Question 5

Functional strategy

Answer 5

Guides activities within one specific area of operations

Question 6

Growth strategy

Answer 6

Expansion through current operations

Question 7

Concentration strategy

Answer 7

Expansions within an existing business area

Question 8

Diversification

Answer 8

Expansion by entering new business areas

Question 9

Vertical integration

Answer 9

Expansion by acquiring existing suppliers or distributors

Question 10

Retrenchment

Answer 10

Changing operations to correct weakness

Question 11

Liquidation

Answer 11

An extreme form of retrenchment, the business closes and sells off its assets

Question 12

Restructuring

Answer 12

Reduces the scale or mix of operations

Question 13

Downsizing

Answer 13

Decreases the size of operations

Question 14

Divestiture

Answer 14

Selling off part of the organization to focus on core businesses

Question 15

Globalization strategy

Answer 15

Adopts standardized products and advertising for use worldwide

Question 16

Multidomestic strategy

Answer 16

Customizes advertising and products to best fit local needs

Question 17

Transnational strategy

Answer 17

Seeks efficiency of global operations with attention to local markets

Question 18

Strategic alliances

Answer 18

A cooperative strategy that involves partnership between organizations to pursue mutual interests or strengthen competitive advantage

Question 19

Supply chain

Answer 19

-Cooperative strategy

Supplier and distribution alliances

Question 20

Co-opetition

Answer 20

-cooperative strategy

Competitors share information or technology

Question 21

E-business strategies

Answer 21

Focus on using the Internet for business transactions

Question 22

B2B business strategies

Answer 22

Use IT and Web portals to vertically link organizations with members of their supply chains

Question 23

B2C business strategies

Answer 23

Business to customers: use it and web portals to link organization with members of their customers

Question 24

Crowdsourcing

Answer 24

Interactive social media strategy that becomes an interactive idea exchange with customers

Question 25

Strategic intent

Answer 25

Focuses organizational energy on achieving a compelling goal

Question 26

Strategic management process

Answer 26

1. Review current situation 2. Analyze organization and external environment 3. Develop new strategies 4. Implement strategies 5. Evaluate results

Question 27

Mission statement

Answer 27

The reason for the organizations interest in society

Question 28

Operating objectives

Answer 28

Specific results that the organization hopes to achieve

Question 29

Swot analysis

Answer 29

A tool used in strategic planning to determine the current status of the organization

Question 30

BCG matrix

Answer 30

Analyzes business opportunities according to growth rate and market share Question marks: poor position, growing industry Stars: dominant position, growing industry Dogs: poor position, low growth industry Cash cow: dominant position, low growth industry

Question 31

Strategic leadership

Answer 31

The capability to inspire people to engage in a process of continuous change, performance enhancement

Question 32

Strategic control

Answer 32

Responsibility of management to stay on top of strategy

Question 33

Strategic thinkers

Answer 33

Question the status quo, challenge assumptions and encourage divergent points of view