Chapter 11 - Strategy and Performance Excellence Flashcards
What is the goal of Strategy Development?
Envisioning the future for purposes of decision making and resource allocation.
What is a firm’s Mission Statement?
The mission of a firm defines its reason for existence. It answer’s the question “Why are we in business?”
What is a firm’s Vision?
The vision describes where the organization is headed and what it intends to be; it is a statement of the future that would not happen by itself.
What do Values/Guiding Principles do for an organization?
They guide the journey to a vision by defining attitudes and policies for all employees which are reinforced thru conscious and subconscious behavior at all levels of the organization.
What are the key factors for an organization’s Environmental Assessment?
The SWOT
Early indications of major shifts in tech, markets, customer preferences, competition, or the regulatory environment
Long-term organizational sustainability
The ability to execute the strategic plan
What is the Baldrige Organizational Profile?
A list of key questions that helps an organization summarize the elements of an environmental assessment.
What are an organization’s Strategic Challenges?
The pressures that exert a decisive influence on an organization’s likelihood of future success.
(Ex. operational costs, market size changes, economic conditions, rapid technological changes)
What are the three aspects of Developing Strategies?
Strategies - Broad statements that set the direction for the org.
Strategic Objectives - What the org must change or improve to be competitive
Action Plans - What the org must do to achieve its strategic objectives
What is Strategy Development?
It involves developing specific actions plans to achieve strategic objectives, ensuring adequate resources are available to accomplish action plans, developing contingencies, aligning activities, and identifying performance measures for tracking progress.
Who are the people involved in Strategy Development?
The Planners who focus on doing the right thing and the Doers who focus on doing things right.
What are some reasons for Poor Deployment?
Lack of alignment across the organization
Misallocation of resources
Insufficient operational measures
What are the Seven Management and Planning Tools?
Affinity Diagrams
Interrelationship digraphs
Tree diagrams
Matrix diagrams
Matrix data analysis
Process decision program charts
Arrow diagrams
What are the Organizational Structures?
Line - Traditional functional departments
Line & Staff - Key functional departments with staff support
Matrix - Typically used in project-oriented organizations
What are Core Competencies?
They refer to an organization’s areas of greatest expertise that provide a sustainable competitive advantage in the marketplace or service environment.
How do Core Competencies aid an organization?
They contribute significantly to customer benefits
They provide access to many products and markets
They are difficult for competitors to imitate
