Chapter 6

Question 1

long term success of an organization and their ability to grow is predicated on (2)
=> growth and profitability =

Answer 1

• ability to define and create a strategic direction and market position (strategic plan)
• ability to execute on core tactical initiatives within the plan to ensure success
  => strategy + tactics execution

Question 2

where do we plan to play?
why is this the best use of resources?
how do we plan to win?

Answer 2

strategy

Question 3

core elements of business strategy (6) - PMPRBR

Answer 3

• purpose
• markets
• products and services
• resources
• business system configuration
• responsibility and accountability

Question 4

refers to mission of organization and vision of management

Answer 4

purpose

Question 5

fundamental purpose the business has identifies as their predominant reason for existence

Answer 5

mission

Question 6

forward-thinking statement that defines what a company wants to become and where its going

Answer 6

vision

Question 7

refers to a review of current ____ offered and potential new ones; works with R&D

Answer 7

products and services

Question 8

refers to modifying the organizations infrastructure and the way it does business to ensure success of plan (i.e. distribution, warehousing, manufacturing, etc)

Answer 8

business system configuration

Question 9

refers to identifying who in the business will be responsible for each aspect of strategic plan

Answer 9

responsibility and accountability

Question 10

SMART goals

Answer 10

specific, measurable, actionable, realistic, time sensitive

Question 11

strategic planning process

Answer 11

revisit purpose
=> undertake I/E analysis to understand environment
==>assess our view of the world
===>choose a direction “where will we play?”
====>implement our strategy

Question 12

Porter’s 5 Forces

Answer 12

1) rivalry among existing competitors
2) threat of new entrants
3) threat of substitute products or services
4) bargaining power of suppliers
5) bargaining power of buyers

Question 13

advantage an organization has over its rivals which enables it to generate greater sales/margins and create preference for products in minds of customers -> “more value”

Answer 13

competitive advantage

Question 14

defines what the organization intends to accomplish and where it plans to compete

Answer 14

corporate-level strategy

Question 15

outlines specific objectives the organization hopes to achieve for each of its identifies business initiatives/business units

Answer 15

business-level strategy

Question 16

detailed immediate-term set of objectives and corresponding tactics designed to achieve a specific business initiative

Answer 16

operating plan

Question 17

• market opportunity identification
• value prop. and pos. analysis
• revenue driver identification and sales forecasts
• upfront and ongoing cost committed requirements
• staffing, infrastructure and process realignment requirements

Answer 17

operating plan formulation fundamentals

Question 18

the level of financial and operational commitment of an organization incurs as a result of implementing the organizations strategies

Answer 18

directional lock-in

Question 19

strategic planning in NFP sector: maintain balance between need to create effective economic base and ensuring social mission and goals met

Answer 19

mission balance

Question 20

strategic planning in NFP sector: enhance through maintenance/growth of membership community/base

Answer 20

vitality

Question 21

strategic planning in NFP sector: ensuring involvement of community where located and population it serves are reflected in strategy

Answer 21

collective entrepreneurship

Question 22

strategic planning in NFP sector: strengthen partnerships and NFP networks

Answer 22

rootedness

Question 23

strategic planning in NFP sector: ensure products and services are priced appropriately

Answer 23

operational effectiveness