Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

mgmt 316 > Chapter 6 -Strategy > Flashcards

Chapter 6 -Strategy Flashcards

1
Q

Strategy

A

Comprehensive plan guiding resource allocation to achieve long-term organization goals

  • Focuses attention on the competitive environment
  • Represents the “best guess”
  • Helps achieve a competitive advantage
  • Very best ones provide a sustainable competitive advantage
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Mission

A

The organization’s reason for existence in society

- Clear and lofty sense sense of purpose for why you exist

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Strategic indent

A

Focuses organizational energies on achieving a compelling goal
- clear and lofty sense of where you’re going in the future

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Strategy provides the plan for reaching a mission and strategic indent

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Competitive advantage

A

An ability to outperform rivals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Sustainable competitive advantage

A

The very best strategies help achieve this

- Achieved in ways that are difficult to imitate for some period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Corporate strategy

A

Sets long-term direction for the total enterprise

- Provides direction and guides resource allocation for the organization as a whole

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Business strategy

A

Identifies how a division or strategic business unit will compete in its product or service domain

  • Focuses on strategic intent for a single business unit or product line
  • Includes decisions about product, service mix, facilities locations, new technologies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Functional strategy

A

Guides activities w/in one specific area of operations to implement higher-level business & corporation strategies
- W/in specific functional area (marketing, finance, HR, manufacturing)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What’s the strategic question for functional strategy?

A

How can we best utilize resources w/in the function to support implementation of the business strategy

A - Increase operating efficiency, product quality, customer service or innovativeness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What’s the strategic question for business strategy?

A

How are going to compete for customers w/in this industry & market?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What’s the strategic question for corporate strategy?

A

In what industries & markets should we compete?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Growth strategies

A

Involves expansion of the organization’s current operations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Growth by concentration strategies

A

Seeks expansion w/in an existing business area

- Ex. Chipotle grows more chipotle restaurants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Growth by diversification strategies

A

Expansions occurs by entering new business areas

  • Can be risky
  • Can be done thru related diversification: expanding into similar new business areas (ex. Pepsi buying Tropicana)
  • Or unrelated diversification: seeking growth in an entirely new business area (ex. Exxon owning Izod)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Growth by vertical integration strategies

A

Occurs by acquiring suppliers or distributors

  • Suppliers –> backward vertical integration (ex. Apple)
  • Distributors –> forward vertical integration (ex. Pepsi, Cola)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Retrenchment strategies

A

Changes operations to correct weaknesses by making radical changes

  • Usually when there’s too much growth or diversification
  • Most extreme form –> Liquidation
  • Less extreme –> Restructuring (downsizing and divestiture)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Divestiture

A

Selling off parts of the organization to refocus attention on core business areas
- Type of restructuring and retrenchment

19
Q

Downsizing

A

Decreases the size of operations and workforce

- Type of restructuring and retrenchment

20
Q

Globalization strategy

A

Views the world as one large market

- Try to advertise and sell products worldwide

21
Q

Multi-domestic strategy

A

Customizes products and advertising to fit local cultures and needs

22
Q

Transnational strategy

A

Integrates global operations without having a strong national identity.

  • Taps business resources and customer markets worldwide
  • Hope to blend seamlessly into global economy
23
Q

Strategic alliances

A

Organizations join together in partnership to pursue an area of mutual interest

  • Outsourcing alliances
  • Supplier alliances
  • Distribution alliances
  • Co-opetition
24
Q

Co-opetition

A

Strategy of working with rivals on projects of mutual benefit.
“revolution mindset”

25
Q

E-business strategy

A

Strategically uses the Internet (web, apps) to gain competitive advantage

26
Q

B2C business strategy

A

Uses IT, Web, and Apps to link businesses with customers.

Business-to-customer

27
Q

B2B business strategy

A

Link businesses to members of their supply chains

Business-to-business

28
Q

C2B business strategy

A

Link customers to businesses that might provide the service/product the customer needs
- Unlike B2C, C2B puts the initiative for for the transaction in the hands of the potential customer

Customer-to-business

29
Q

C2C business strategy

A

Link customers together to make business transactions
- Host site collects a fee for the opportunity (ex. Etsy, Mercari)

Customer-to-customer

30
Q

P2P business strategies

A

link persons needing services with those willing to provide them.
- Part of the sharing economy (ex. Uber, Airbnb)

Peer-to-peer

31
Q

What are the steps in the Strategic Management process?

A
  1. Review existing mission, objectives, strategies
  2. Analyze organizational strengths & weaknesses, and environmental threats and opportunities
  3. Develop new strategies at corporate, business, and functional levels
  4. Implement strategies (thru mgmt systems, practices, and strategic leadership)
  5. Evaluate results through strategic control, and renewing strategic management process
32
Q

What are Porter’s five forces model of industry attractiveness?

A

Force 1: Competitors - intensity of rivalry among firms in the industry
Force 2: New entrants - threats of new competitors entering the market
Force 3: Suppliers - bargaining power of suppliers
Force 4: Customers - bargaining power of buyers
Force 5: Substitutes - threats of substitute products or services

33
Q

Porter’s competitive strategies model

A
  • Competitive strategies can be built around differentiation, cost leadership, and focus
34
Q

Porter’s differentiation strategy

A

Seeks competitive advantage through uniqueness

  • Objective is to attract customers who stay loyal to the firm’s products and lose interest in their competitors
  • Success depends on customer perceptions of product quality, and uniqueness.
  • Requires strong marketing, research & development
35
Q

Porter’s cost leadership strategy

A

Seeks competitive advantage by operating w/ lower costs than competitors

  • Allows org. to make profits while selling products or services at low prices, competitors can’t match
  • Objective is to continuously improve operating efficiencies
36
Q

Porter’s focus strategy

A

Serve the needs of a narrow market segment better than everyone else

  • Focused differentiation strategy: offer a unique product in a special market segment
  • Focused cost strategy: tries to be the low-cost provider for a special market segment
37
Q

What’s the purpose and use of the BCG Matrix?

A

BCG matrix: analyzes business opportunities according to market growth rate and market share
- Purpose –> Sorts businesses or products into 4 strategic types (dogs, stars, question marks, cash cows) and find the appropriate strategy to apply

38
Q

Explain the responsibilities of strategic leadership?

A

Guardian of trade-offs –> make sure resources are allocated in ways consistent w/ the strategy

Create a sense of urgency –> Keeps the focus on getting better and being alert to conditions that require adjustments to the strategy

Make sure everyone understands the strategy –> Make sure efforts are aligned w/ strategy

Champion of control –> Maintaining strategic control (staying in close touch of strategy

39
Q

Strategic leadership

A

Inspires people to implement organizational strategies.

40
Q

Top managers come up w/ create approaches during the strategic management process

A

TRUE

41
Q

Cost leadership is a strategy focused on price sensitivity

A

TRUE

42
Q

Strategic management

A

Process of formulating and implementing strategies to deliver competitive advantage and accomplish long-term goals

43
Q

Strategy formulation

A

Process of creating strategies to deliver competitive advantage.
- Crafting strategy to fit mission, strategic indent, objectives, environmental conditions

44
Q

Strategy implementation

A

Process of putting strategies into action.

mgmt 316 (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions