chap 4 Flashcards
The _ _ process describes its method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage.
strategic management
are the first steps in the strategic management process.
Discovering a firm’s vision and mission and defining its values
For _, the founders usually begin with a driving vision that they must further shape into statements about what they want to accomplish and how they will do so.
new organizations
For _ _ this step is about fine-turning their vision and mission as reaffirming their values.
existing firms,
A is a statement about what an organization ultimately wants to accomplish. It captures the company’s aspiration.
vision
It also guides actions and decisions at all levels of the organization and helps to promote consistency of purpose so that everyone works towards the same goal.
vision
3 distinct types of vision
An effective vision is _ , _ and_ enough to excite and_ .
convincing, realistic and powerful :;inspire
t/f
The vision needs to be flexible and capable of coping with changing circumstances.
True
Building on the vision, organizations establish a _, which describes what an organization actually does the products and services it plans to provide and the markets in which it will compete.
Mission
A mission can be.
customer-oriented or product oriented.
defines a business in terms of providing solutions to customer needs.
Customer-Oriented Mission
t/f
Companies that have customer-oriented missions tend to be more flexible when adopting to changing environment.
True
define a business in terms of a good or service provided rather than in terms of the customer needs to be met.
Product-Oriented Missions
are the ethical standards and norms that govern the behaviour of individuals within a firm or organization and within society.
Organizational values
In the _ _ , managers brainstorms to identify possible future scenarios.
Input from several different hierarchies within the organization and from different functional areas such as marketing, sale, manufacturing, finance and research and development is critical.
Managers should consider both pessimistic and optimistic future scenarios.
This stage will cover the following areas:
analysis stage
Analysis stage coverage areas :
The Strategic Management Process:
Internal Analysis:
External Analysis:
Firm Performance:
In the i_ _ , managers activate the dominant strategic plan, the option they think most closely matches reality.
If reality changes, managers can quickly retrieve and implement any of the alternate plans developed in the formulation stage.
implementation stage,
The firm’s performance in the marketplace provides feedback to the managers concerning the viability of the _ _ plan.
dominant strategic
When strategizing for competitive advantage, managers rely on the following approaches that can complement one another
1) Strategic Planning
2) Scenario Planning and
3) Strategy as Planned Emergencies
Customer-oriented missions identify a critical need but leave open the means of how to meet this need.
It is critical not to define how a customer need will be met because the future is unknowledgeable and innovation might provide new ways to meet needs that have not been thought of today.
Even if customer needs are constant, the organizations mission should be flexible because the means of meeting those needs can change over time
Customer-Oriented Mission
T/f
Mission statements and competitive advantage to mission statements help from firm gain and sustain competitive advantage.
True
T/F
Researches show that sometimes mission statements and firm performance are associated with are another. What is not very clear, however, is whether these relationships are caused, that is, whether an effective mission statement leads to competitive advantage. The upshot is that an effective mission statement can lay the foundation upon which to craft a strategy that creates economic value, leading to competitive advantage.
True
Strong ethical values have two important functions
a. They form a solid foundation on which a firm can build its mission and long-term success.
b. They serve as the guardrails put in place so the company can stay on track when pursuing its guest for competitive advantage.
Building Strategy is the result of three broad management tasks, namely:”
I. Analysis and Identification
II. Formulation
III. Implementation and Evaluation
is a model that links interdependent strategic management tasks-analyze, formulate, and implement-that, together, help firms conceive of and implement a strategy that can improve performance and result in competitive advantage.
ANALYSIS, FORMULATION AND IMPLEMENTATION (AFI) STRATEGY FRAMEWORK
In the _ _ , management teams develop different strategic plans to address possible future scenarios.
This kind of what-if exercise forces managers to consider contingency plans in the formulation stage before events
occur.
formulation stage
t/F
If the performance feedback is positive, managers continue to pursue the dominant strategic plan, while fine-tuning it in the process.
If the performance feedback is negative, managers consider whether modifying the dominant strategic option will enhance firm performance or whether they are better off activating one of the alternative strategic plans.
TRue
BASIC STRATEGIC MANAGEMENT PROCESS ILLUSTRATED
- Identification and Analysis
- Strategy Formulation
- Strategy implementation and Evaluation
_ strategic (long-range) planning works reasonably well when the environment does not change much.
Top-down
In scenario _, managers envision different what-if scenarios and prepare _ plans that can be called upon when necessary.
planning; contingency ;
Strategic initiatives can be the result of_ planning by executions and can emerge through a _ process from deep within the organization.
top-down ; bottom-up
A firm’s realized strategy is generally a combination of its _ intended strategy and _ emergent strategy resulting in planned emergency.
top-down; bottom-up
HOW TO PUT STRATEGY INTO ACTION
To put a firm’s strategy into action a business model must
a) Translate the firm’s strategy into competitive tactics and initiates and
b) Implement the strategy through effective structures, processes, culture and procedures.
