Chapter 5 Flashcards
A unique skill and/or knowledge an organization prossrsses that gives it an edge over competitors
Core capability
Achieving the best possible balance among several goals
Optimizing
A process in which group members generate as many ideas about a problem as they can; criticizing is withheld until all ideas have been proposed
Brainstorming
The major action by which an organization competes in a particular industry or market
Business strategy
A strategy and organization uses to build competitive advantage by being efficient and offering a standard, no-frills product
Low – cost strategy
A system designed to support managers in evaluating the organization’s progress regarding the strategy and when discrepancies exist, taking corrective action
Strategic control system
Ideas that have been seen or tried before
Ready-made solutions
specify actions to take when a company’s initial plans have not worked well or events in the external environment require a sudden change.
Contingenncy Plan
A target or end that management desires to reach
Goal
Disadvantages of leading
Greater risk cost of technology development cost of market development and consumer education infrastructure costs cost of learning and eliminating defects possible cannabalism of existing products
BCG matrix
Steps for general decision-making
1) identifying and diagnosing the problem 2) generating alternative solutions 3) evaluating alternatives 4) making the choice 5) implementation 6) evaluation
Stages of strategic planning
1) situational analysis 2) alternative goals and plans 3) goal and plan evaluation 4) goal and plan selection 5) implementation 6) monitor and control
New, creative solutions designed specifically for the problem
Custom-made solutions
a process planners use, within time and resources constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration
Situational analysis
Hierarchy of goals and plans
The process of identifying the specific procedures and processes required at lower-level of organization
Operational planning
A structured debate comparing 2 conflicting courses of action
Dialectic
strategies that typically are developed by functional area executives with input of and approval from the executives responsible for business strategy.
Functional Strategies
A narrative that describes a particular set of future conditions
Scenario
The long-term direction and strategic intent of a company
Strategic vision
Strategies implemented by each functional area of the organization to support the organization’s business strategy
Functional strategies
A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a particular portion of the organization, such as a functional areas like marketing
Tactical planning
The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities
Corporate strategy
A person who has the job of criticizing ideas to ensure that there are downsides are fully explored
Devils advocate
A pattern of actions and resource allocations designed to achieve the organization’s goals
Strategy
A condition that occurs when a decision-making group loses sight of its original goal and new ones, less important goals emerge
Goal displacement
An effective goal should be:
1) specific 2) measurable 3) attainable 4) relevant 5) time bound
A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions
Differentiation strategy
The state that exists when decision-makers have accurate and comprehensive information
Certainty
A strategy employed for an organization that operates a single business and competes in a single industry
Concentration
People’s belief that they can influence events, even when they have no control over what will happen
Illusion of control
The actions or means managers intend to use to achieve organizational goals
Plants
A set of procedures for making decisions about the organization’s long-term goals and strategies
Strategic planning
Groups and individuals who affect and are affected by the achievement of the organizations mission, goals and strategies
Stakeholders
A bias weighing short-term costs and benefits more heavily than the long-term costs and benefits
Discounting the future
Advantages of leading
1st mover advantage little or no competition great efficiency higher profit margins sustainable advantage reputation for innovation establishment of entry barriers occupation of best market niches opportunities to learn
An organization’s basic purpose and scope of operations
Mission
Choosing an option that is acceptable, although not necessarily the best or perfect
Satisficing
Formal planning steps
step 1 – situational analysis step 2 – alternative goals and plans step 3 – goal and plan evaluation step 4 – goal and plan selection step 5 – implementation step 6 – monitor and control
A strategy used to add new businesses that produce related products or are involved in related markets and activities
Related diversification
Major targets or end results relating to the organization’s long-term survival, value and growth
Strategic goals
A comparison of strengths, weaknesses, opportunities, and threats that help executives formulate strategy
SWOT analysis
The state that exist when decision-makers have insufficient information
Uncertainty
Inputs to a system that can enhance performance
Resources
The acquisition or development of new businesses that produce parts or components of the organization product
Vertical integration
A decision realizing the best possible outcome
Maximizing
A phenomenon that occurs in decision-making when group members avoid disagreement as they strive for consensus
Groupthink
Strategy use to add new businesses that produce unrelated products or are involved in unrelated markets and activities
Unrelated diversification
A decision bias influence by the way in which a problem or decision alternative is phrase or present
Framing effects
The state that exist when the probability of success is less than 100% and losses may occur
Risk
A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies
Strategic management
