Chapter 5 Flashcards
1
Q
business strategy: marketing oriented efforts
A
mission goals objectives strategies tactics
2
Q
business strategy: sales oriented efforts
A
tactics
3
Q
business strategy hierarchy
A
corporate strategy broken.
3 business unit strategies.
each have product and strategies
4
Q
critical elements of strategy development
A
- set goals and objectives
- understand environment of business operations
- learn from experience
- think critically
5
Q
strategic management process
A
- set goals and objectives
- analyze current situation
- SWOT
- strategy design & choose strategy
- implement design
- implement strategy
- monitor results
- analyze performance
- adjust
6
Q
key strategy concept 1
A
7
Q
fit
A
providing superior value through differentiated pieces of the total offering
8
Q
key strategy concept 2
A
drive change rather than adapt to it
- quality and process are essential to superior value
- measuring and tracking are necessary to continuous improvement
9
Q
summary strategy concept
A
change in customers channels and competitors cause discontinuities in the evolution of industries or markets
- companies seldom impact change in market
- keep up with changes in the rules of the market
10
Q
resources allocation
A
- infrastructure, personnel, finances, etc.
- are not limitless
- strategic planning process is a resource allocation process
11
Q
Boston consulting group: growth share matrix
A
stars, question marks, cash cows, dogs
12
Q
star
A
- high growth, high share
- needs heavy investment; builds market share
- manage with market ownership (eventually becomes cash cows)
13
Q
cash cow
A
- low growth, high share
- established, successful, invest enough to hold market
- cash generators
- harvest to increase short term cash
14
Q
question marks
A
- low share, high growth markets
- requires cash to hold share
- what should be done?
- match with organizations distinctive competencies?
- obtain the resources needed?
- *Build these into stars or phase out
15
Q
dogs
A
- low growth, low share
- may be self-sustaining
- one organization’s dog could be another’s cash cow
- discontinue, divest
