Chapter 6 Flashcards
focuses on external events that may influence the present position of a business.
Environmental Scanning
is primarily concerned with the trends of events.
Environmental Monitoring
gives preferential importance on information about competitors.
Competitive Intelligence
evaluates the level of competition and assesses the attractiveness of an industry itself.
Porter’s Five Forces of Competition Model
To determine how culture influences strategy formulation.
Corporate Culture
To determine what structure can effectively and efficiently achieve organizational goals.
Organizational Culture
To determine which business resource contributes to the achievement of competitive advantage.
Business resources
evaluates the internal strengths and weaknesses of a company against what the external opportunities and threats offer.
SWOT ANALYSIS
To assess a company’s strengths and weaknesses so that opportunities are exploited and threats are avoided or minimized.
SWOT ANALYSIS
a strategic management tool that assess the resources of a company to achieve competitive advantage
VRIO FRAMEWORK
if it can add value for the customer and if it provides the company the capability to exploit opportunities or defend against threats
valuable
only a few company possess it
Rare
if it can be hardly imitated or is costly to imitate
Imitability
when the activities of different functional units, systems, processes, and structures are coordinated, planned and arranged properly
Organized
To identify a company’s resource that is considered valuable, rare, and difficult to imitate and to assess if the company is organized to use it to sustain a competitive advantage
VRIO FRAMEWORK
developed by Michael Porter – is a strategic management tool that evaluates the internal activities of a company when producing goods or delivering services.
VALUE CHAIN ANALYSIS MODEL
Inbound logistics Operations Outbound logistics Marketing Service
Primary Activities -
Company infrastructure Human resource management Technology development Procurement
Support Activities -
represents the benefits that are derived from a product or service.
value
can be attained by adopting an efficient manufacturing process.
creating value
The focus of the analysis is on the activities that create cost to the company and how they can be reduced.
Cost Advantage -
The focus of the analysis is on the activities that create value for the customers and how they can be improved.
Differentiation Advantage -
developed by Bruce Herderson of the Boston Consulting Group (BCG) in 1970, is a strategic management model that assesses a company’s business units or products in terms of market share and market growth.
BCG GROWTH-SHARE MATRIX MODEL
To determine the status of a company’s unit of product portfolio in terms of market share and growth.
BCG GROWTH-SHARE MATRIX MODEL
also known as scenario analysis or scenario thinking, is a strategic management technique used by organizations to anticipate and prepare for possible future events and uncertainties.
SCENARIO PLANNING
It involves creating a set of alternative scenarios or narratives that describe different plausible future states of the world.
SCENARIO PLANNING
the specific strategic tool used to scan the societal environment is the
PESTEL or STEEP analysis
The strategic approach that is used to analyze the physical environment is ______ .
environmental scanning.
To gather, evaluate, and disseminate reliable and relevant information about the societal environment, the approach used is an _________
environmental scanning
