Chapter 6 Flashcards
What are the different types of goals?
- Financial goals
- Market goals
- Political goals
- Ethical goals
- Cultural goals
Which type of goal has the most importance long-term in business?
Financial goals
Strategic planning always involves an analysis of two different factors. They are…
- Internal
2. Those in the business environment
What three types of resources are there?
- Tangible resources
2. Intangible resources
Examples of tangible resources?
Financial data and strategy, financial targets, materials, locations, plant, technology
Examples of intangible resources?
Reputation, patents, research capacity.
Skills of employees and commitment
Examples of systems?
Formal and informal business systems, systems to resolve disputes, planning systems…
How does a position-based (P-B) approach to strategic planning work?
Focus on your position in your industry as a guide. Ex. using a SWOT analysis
What are the four growth strategies defined by the Coulter (2008) study?
- Product market exploitation: increase production in current market.
- Product dev: New (or modified) product in current market.
- Market dev: Current products in new markets.
- Product-market diversification: New products in new markets.
What is the flow of a product through the BCG matrix?
question mark -> star -> cash cow -> dog
Two different formal approaches to strategy?
a. Plan of action that focuses on applying RESOURCES.
b. A plan of action that focuses on POSITIONING the organization in relation to the environment and competition.
Emergent planning
Strategic planning in response to small shifts in the environment
Formal planning in anglo companies tends to be…
DIRECT DELIBERATE TOLERANT OF COMPETITION AND CONFLICT LONG TERM BUREAUCRATIC TOLERANT OF RADICAL CHANGE
Reasons for resistance to change
Fear, misunderstanding, cynicism
Formal planning
Resolve observed weakness AND/OR
Exploit opportunity AND/OR
Counter apparent threats
