Chapter 3: Planning and Strategic Management Flashcards

1
Q

mission

A

a statement of an organization’s fundamental purpose

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2
Q

strategic goal

A

a goal set by and for an organization’s top management

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3
Q

tactical goal

A

a goal set by and for an organization’s middle managers

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4
Q

operational goal

A

a goal set by and for an organization’s lower-level managers

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5
Q

purpose of goals (4)

A

they provide guidance and a unified direction for people in the org, goal-setting practices strongly affect other aspects of planning, goals can serve as a source of motivation for an org’s employees AND goals provide an effective mechanism for evaluation and control.

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6
Q

KINDS OF GOALS

A

strategic, tactical and operational

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7
Q

KINDS OF ORGANIZATIONAL PLANS

A

strategic plan, tactical plan, operational plan

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8
Q

Strategic plan

A

a general plan outlining decisions about the resource allocation, priorities and action steps necessary to reach strategic goals

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9
Q

Operational plan

A

a plan that focuses on carrying out tactical plans to achieve operational goals

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10
Q

Tactical plans

A

it is developed to implement specific parts of a strategic plan

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11
Q

Strategy

A

a comprehensive plan for accomplishing an organization’s goals

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12
Q

a well-conceived strategy addresses three areas:

A

distinctive competence, scope and resource deployment

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13
Q

distinctive competence

A

an organizational strength possessed by only a small number of competing firms

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14
Q

scope

A

when applied to strategy, it specifies the range of markets in which an organization will compete

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15
Q

strategic management

A

a comprehensive and ongoing management process aimed at formulating and implementing effective strategies; a way of approaching business opportunities and challenges

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16
Q

effective strategy

A

a strategy that promotes a superior alignment between the organization and its environment and the achievement of strategic goals

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17
Q

resource deployment

A

how an organization distributes its resources across the areas in which it competes

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18
Q

conglomerates

A

compete in dozen or even hundreds of markets

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19
Q

most business develop strategies at two distinct levels

A

business level and corporate level

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20
Q

business-level strategy

A

the set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market

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21
Q

corporate-level strategy

A

the set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets

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22
Q

strategy formulation

A

the set of processes involved in creating or determining an organization’s strategies; it focuses on the content of strategies

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23
Q

strategy implementation

A

the methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved

24
Q

what is swot

A

a careful evaluation of an org’s internal strengths and weaknesses and its environmental opportunities and threats

25
Q

the best strategies accomplish an org’s mission by: (3)

A

exploiting an organization’s opportunities and strengths while (2) neutralizing its threats and (3) avoiding (or correcting) its weakness

26
Q

SWOT acronym

A

an acronym that stands for strengths, weaknesses, opportunities and threats

27
Q

organizational strength

A

a skill or capability that enables an organization to create and implement its strategies

28
Q

organizational weakness

A

a skill or capability that does not enable an org to choose and implement strategies that support its mission

29
Q

an org has two ways to address its weaknesses

A

1 make investments to obtain the strengths required to implement strategies that support its misson (2) may need to modify its mission so that is can be accomplished with the skills and capabilities that the org already possesses

30
Q

organizational opportunities

A

an area in the environment that, if exploited, may generate higher performance

31
Q

oganizational threat

A

an area that increases the difficulty of an org performing at a high level

32
Q

differentiation strategy

A

a strategy in which an orgnization seeks to distinguish itself from competitors through the quality of its products or services

33
Q

overall cost leadership strategy

A

a strategy in which an org attempts to gain a competitive advantage by reducing its costs below the costs of competing firms

34
Q

focus strategy

A

a strategy in which an org concentrates on a specific regional market, product line, or group of buyers

35
Q

product life cycle

A

a model that portrays how sales volume for products changes over the life of products

36
Q

decline stage

A

demand for the product or technology decreases, number of orgs producing the product drops and total sales drop

37
Q

diversification

A

the number of different businesses that an org is engaged in and the extent to which these businesses are related to one another

38
Q

single-product strategy

A

a strategy in which an organization manufactures just one product or service and sells it in a single geographic market

39
Q

related diversification

A

a strategy in which an org operates in several businesses that are somehow linked with one another

40
Q

three primary advantages of related diversification

A

(1) reduces an org’s dependence on any one of its business activities and reduces economic risk (2) by managing several businesses at the same time, an org can reduce the overhead costs associated with managing any one business (3) it allows an org to exploit its strengths and capabilities in more than one business

41
Q

unrelated diversification

A

a strategy in which an org operates multiple businesses that are not logically associated with one another

42
Q

unrelated diversification has two advantages

A

a business that uses this would (1) be able to achieve stable performance over time (2) and it is also thought to have resource allocation advantages

43
Q

portfolio management techniques

A

methods that diversified organizations use to determine in which businesses to engage and how to manage these businesses to maximize corporate performance

44
Q

BCG (Boston Consulting group) matrix

A

a framework for evaluating businesses relative to the growth rate of their market and the org’s share of the market

45
Q

GE business screen

A

a method of evaluating businesses along two dimensions (1) industry attractiveness and (2) competitive position; in general, the more attractive the industry and the more competitive the position, the more an organization should invest in a business

46
Q

tactical plans

A

a plan aimed at achieving tactical goals and developed to implement parts of a strategic plan; an organized sequence of steps designed to execute strategic plans

47
Q

single-use plan

A

developed to carry out a course of action that is not likely to be repeated in the future

48
Q

program

A

a single-use plan for a large set of activities

49
Q

project

A

a single-use plan of less scope and complexity than a program

50
Q

standing plan

A

developed for activities that recur regularly over a period of time

51
Q

policy

A

a standing plan that specifies the org’s general response to a designated problem or situation

52
Q

SOP (standard operating procedures)

A

a standard plan that outlines the steps to be followed in particular circumstances

53
Q

rules and regulations

A

describe exactly how specific activities are to be carried out

54
Q

contingency planning

A

the determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered in appropriate

55
Q

crisis management

A

the set of procedures the org uses in the event of a disaster or other unexpected calamity