Chapter 2 :Overall Organizational Performance

Question 1

Steps of problem solving process

Answer 1

Identify resource gap then obtain the needed resources
Explain impact on business and consider different solutions
Choose best solution and explain it in depth

Question 2

Problem solving techniques

Answer 2

Pros and cons chart–decision made will be based on advantages and disadvantages of the options
Decision tree–visual representation of the consequences of a certain decision(looks like a tree diagram)
Value chain analysis–Evaluating which activities aren’t adding much value to the business
PE2STLE, SWOT
DelphI–Consulting with professionals for their opinion on the matter anonymous
Resource-based analysis–Determining which resources play a strategic and competitive role and which one’s help solve problems.

Question 3

Balanced score card

Answer 3

Describe the key outcomes the business wants to evaluate in order to improve these outcomes
These elements must be analyzed to see the role they play:
Financial perspective : focus on maximizing use of assets and minimizing costs to create shareholder value.
Customer perspective: Focus on how the customer sees the business and their expectations toward the business
Internal business perspective: Focus on innovative products/services, management of operations and social investment to improve the business
Learning and growth perspective: How employees can add value and improve the business through intangible assets like intellectual property, leadership, culture, accountability, teamwork, etc

Question 4

Vision, mission, objectives, strategy

Answer 4

Vision: what the business wants to become
Mission: the purpose of the business and what the business does
Objectives: Anticipating future events by preparing for them before the happen
Strategy: any plan of action to achieve a desired outcome

Question 5

Types of strategies

Answer 5

Generic strategy
Corporate strategy
Growth strategy
Integration strategy

Question 6

Generic strategy

Answer 6

-Low cost : Advantage is having the lowest cost in the industry
-Focus/niche: when the business focuses all efforts toward a specific market that other business didn’t see as worth while; niche market must be big enough to be a viable investment; must have expert knowledge on niche in order for it to grow
-Differentiation: Providing a unique product to stand out from competition to create customer loyalty; must be difficult for competition to copy; to maintain advantage must continuously redevelopment product

Question 7

Corporate strategy

Answer 7

-corporate combination: when two or businessss agree to combine resources to improve both businesses(joint venture) ; when businesses combine to create an entirely new business (merge/takeover)
-Decline/defensive strategy: When a business decides to scale down or reduce the size of its operations

Question 8

Decline/defensive strategy

Answer 8

-Retrenchment: the business reduces its size or the diversity of products sold to reduce expenses
-Diverstiture: the business sells its operations if the assets that run the operations are under-utilized
-Liquidation: when business reaches bankruptcy and has to sell all assets to pay for debts then discontinues

Question 9

Growth strategies

Answer 9

-Market penetration: using pre-existing product and market to get more sales (ie could offer lower prices)
-product development: creating new product or modifying pre-existing one n offering it to the same market
-Market development : taking a pre-existing product with no alterations n offering it to a new market(either geographical or demographical)
-Diversification: offering a new product to a new market