Chapter 4 Planning and Strategic Management Flashcards
What are the steps in the strategic planning process? Why should companies engage in strategic planning?
1) Situational analysis
2) Alternative Plans and Goal s
3) Plan and Goal evaluation
4) Plan and Goal selection
5) Implementation
6) Monitor and Control
Planning provides individuals and work units with a clear map to follow in their future activities; at the same time this map may be flexible enough to allow for individual circumstances and changing conditions.
What are the components of a Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis?
Strengths and weaknesses refer to internal resources.例）an organization’s strengths might include skilled management, positive cash flow, and well-known and highly regarded brands. Weaknesses might be lack of spare production capacity and the absence of reliable suppliers.
Opportunities and threats arise in the macroenvironment and competitive environment. Examples of opportunities are a new technology that could make the supply chain more efficient and a market niche that is currently underserved. Threats might include the possibility that competitors will enter the underserved niche once it has been shown to be profitable.
What is the difference between strategic vision, strategic intent, strategic objectives, and strategic mission?
long-termなdirection/strategic intentがstrategic vision.
What does a core competency mean for an organization?
core competence: A unique skill and/or knowledge an organization possesses that gives it an edge over competitors.
When resources are valuable, rare, inimitable, and organized, they can be viewed as a company’s core competencies.
例：本田の小型エンジン、ソニーのminiaturization、
As an owner of a clothing manufacturer who is considering entering the teen and pre-teen markets, which of the following steps should be accomplished first to make your decision? A) make alternative goals and plans B) evaluate the goals C) select a plan D) do a situational analysis E) monitor and control the plan
D
Organizations usually have a number of mutually reinforcing strategic goals. A computer manufacturer has the following goals at various levels of the organization. Which goal is a strategic goal?
A) the number of programmers to hire
B) which accounting system to use
C) the manufacturing equipment to be purchased for a new product line
D) launching a specified number of new products in a particular time frame
E) the possible change in advertising agencies
D
Which of the following is one of the four key drivers of a strategy map?
A) the skills of its people and their ability to grow and learn
B) the effectiveness of its internal processes
C) its ability to deliver value to customers
D) its ability to grow its financial assets
E) All of the above are key drivers of a strategy map.
.E
Which of the following is an example of a mission statement?
A) We work to help people and businesses throughout the world to realize their full potential. Microsoft
B) Together we create a community of good neighbors. City of Redmond, WA
C) To enhance and become an integral part of the training mission of the Naval Service Training Command, Great Lakes, by instilling in our newest sailors a strong sense of tradition and heritage of Naval service in the United States. Great Lakes Naval Museum
D) To be the world’s most dynamic science company, creating sustainable solutions essential to a better, safer and healthier life for people everywhere. DuPont
E) To have a Coke within arm’s reach of every person in the world. Coca-Cola
A
Frequently, the difference between an opportunity and a threat depends on how a company positions itself strategically.
A) True
B) False
A
The Walt Disney Company has developed its strategic plan on combinations of tangible assets (e.g. hotels and theme parks) as well as intangible assets (brand recognition, talented craftspeople, and culture focused on customer service).
A) True
B) False
A
A core competence is something a company does especially well relative to its competitors.
A) True
B) False
Bと答えてしまった。
答えはA
8 A corporate strategy identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses. Which of the following is an example of a corporate strategy? A) benchmarking B) collaboration C) concentration D) differentiation E) cooptation
Aと最初答えてしまった。
答えはC
9
Nordstrom follows a differentiation business strategy.
A) True
B) False
.A
10
Which of the following is a step in the strategy implementation process?
A) Complete a financial analysis.
B) Establish a mission, vision, and goals.
C) Analyze external opportunities and threats.
D) Assess organizational capabilities.
E) Build a strategy map.
D
Summarize the basic steps in any planning process.
1) Situational analysis
A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration.
For example, if you are a manager in a magazine company considering the launch of a sports publication for the teen market, your analysis will include such factors as the number of teens who subscribe to magazines, the appeal of the teen market to advertisers, your firm’s ability to serve this market effectively, current economic conditions, the level of teen interest in sports, and any sports magazines already serving this market and their current sales.
2) Alternative goals and plans
Continuing with our magazine publishing example, the alternatives you might want to consider could include whether the magazine should be targeted at young men, young women, or both groups, and whether it should be sold mainly online, through subscriptions, or on newsstands.
Goals should have certain qualities, which are easy to remember with the acronym SMART:
Specific —When goals are precise, describing particular behaviors and outcomes, employees can more easily determine whether they are working toward the goals.
Measurable —As much as possible, the goal should quantify the desired results, so that there is no doubt whether it has been achieved.
Attainable (but challenging) —Employees need to recognize that they can attain the goals they are responsible for, or else they are likely to become discouraged. However, they also should feel challenged to work hard and be creative.
Relevant —Each goal should contribute to the organization’s overall mission (discussed later in this chapter), while being consistent with its values, including ethical standards (see Chapter 5). Goals are most likely to be relevant to the organization’s overall objectives if they are consistent within and among work groups.
Time-bound —Effective goals specify a target date for completion. Besides knowing what to do, employees should know when they need to deliver results.
3) Goal and plan evaluation
Next, managers will evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan. They must prioritize those goals and even eliminate some of them. Also, managers will consider care fully the implications of alternative plans for meeting high-priority goals. In particular, they will pay a great deal of attention to the cost of any initiative and the investment return that is likely to result.
In our magazine publishing example, your evaluation might determine that newsstand sales alone wouldn’t be profitable enough to justify the launch. Perhaps you could improve profits with an online edition supplemented by Podcasts.
4) Goal and plan selection
Once managers have assessed the various goals and plans, they will select the one that is most appropriate and feasible. The evaluation process will identify the priorities and trade-offs among the goals and plans. For example, if your plan is to launch a number of new publications, and you’re trying to choose among them, you might weigh the different up-front investment each requires, the size of each market, which one fits best with your existing product line or company image, and so on.
5) Implementation
Once managers have selected the goals and plans, they must implement the plans designed to achieve the goals. Even the best plans are useless if they are not implemented properly. Managers and employees must understand the plan, have the resources to implement it, and be motivated to do so. Including employees in the previous steps of the planning process paves the way for the implementation phase. As we mentioned earlier, employees usually are better informed, more committed, and more highly motivated when a goal or plan is one that they helped develop.
Finally, successful implementation requires a plan to be linked to other systems in the organization, particularly the budget and reward systems. If the manager does not have a budget with financial resources to execute the plan, the plan is probably doomed. Similarly, goal achievement must be linked to the organization’s reward system. Many organizations use incentive programs to encourage employees to achieve goals and to implement plans properly. Commissions, salaries, promotions, bonuses, and other rewards are based on successful performance.
6) Monitor and control
Managers must continually monitor the actual performance of their work units against the unit’s goals and plans. They will also need to develop control systems to measure that performance and allow them to take corrective action when the plans are implemented improperly or when the situation changes.
In our magazine publishing example, newsstand and subscription sales reports are essential for letting you know how well your new magazine launch is going. If subscription sales aren’t doing as well as expected, you may need to revise your marketing plan.
