chapter 9

Question 1

strategic planning

Answer 1

-ability to engage in long-range planning that focuses on the organization as a whole

Question 2

strategy

Answer 2

– Broad, general plan for long-term objectives

Question 3

tactical plans

Answer 3

– Specific actions you’re going to take to address a problem or achieve a goal
– Tactical plans are developed in the short term, to support and achieve strategic goals, over the long term

Question 4

strategic management

Answer 4

process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy.

Question 5

Strategic Management Process (SMP)

Answer 5

1. environmental analysis
2. establishing organizational direction
3. strategy formulation
4. strategy implementation
5. strategic control

Question 6

environmental analysis

Answer 6

general environment, operating environment, organization, internal environment

Question 7

general environment

Answer 7

economic, technology, legal, political, social components

Question 8

operating environment

Answer 8

supplier, competition, customer, labor, international

Question 9

internal environment (functions)

Answer 9

planning, organizing, influencing, control

Question 10

industry environment

Answer 10

level of an organization’s external environment that contains components normally having relatively specific and immediate implications for managing the organization

Question 11

porters five forces

Answer 11

attractiveness of an industry is determined by five alternative forces

Question 12

threat of new entrants

Answer 12

refers to the ability of new firms to enter an industry; as the threat of new entrants increases, the attractiveness of the industry decreases

Question 13

buyer power

Answer 13

refers to the power that customers have over the firms operating in an industry; as buyer power increases, the attractiveness of the industry decreases

Question 14

supplier power

Answer 14

denotes the power that suppliers have over the firms operating in an industry. As supplier power increases, industry attractiveness decreases

Question 15

threat of substitute products

Answer 15

refers to the extent to which customers use products or services from another industry instead of the focal industry. As the threat of substitute products increases, which implies that customers have more choices, the attractiveness of the industry decreases

Question 16

intensity of rivalry

Answer 16

refers to the intensity of competition among the organizations in an industry. As the intensity of rivalry increases, the attractiveness of the industry decreases.

Question 17

organizational mission

Answer 17

the purpose for which—the reason why—an organization exists; a broad statement of organizational direction and is based on a thorough analysis of information generated through environmental analysis

Question 18

developing a mission statement

Answer 18

– Written document describing and explaining the
organization’s mission
– Written by management with input from managers and employees
– Needs to be communicated to, and understood by all

Question 19

importance of Organizational Mission

Answer 19

-leads ind in the same direction
-offers basis for distributing resources
-defines the work areas that need focus and must be completed

Question 20

Relationship between the Mission and Objectives

Answer 20

– Objectives and goals should flow naturally from mission
– Mission should flow naturally from information obtained in environmental analysis

Question 21

strategy formulation

Answer 21

Determining appropriate courses of action for
achieving objectives

Question 22

SWOT analysis

Answer 22

Matches internal organizational strengths and weaknesses with external opportunities and threats

Question 23

critical question analysis

Answer 23

synthesis of the ideas of several contemporary management writers suggests that formulating an appropriate organizational strategy

Question 24

business portfolio analysis

Answer 24

an organizational strategy formulation technique that is based on the philosophy that organizations should develop strategy much as they handle investment portfolios

Question 25

SBU

Answer 25

strategic business unit: significant organizational segment that is analyzed to develop organizational strategy aimed at generating future business or revenue

Question 26

BCG growth share matrix

Answer 26

helps managers develop organizational strategy based on market share of businesses and the growth of markets in which businesses exist.

Question 27

GE Multifactor Portfolio Matrix

Answer 27

helps managers develop organizational
strategy that is based primarily on market
attractiveness and business strengths.

Question 28

stars bcg

Answer 28

high growth and market share

Question 29

? BCG

Answer 29

small share of a high-growth market

Question 30

cash cow BCG

Answer 30

high market share, but low growth

Question 31

dogs BCG

Answer 31

small share, small growth

Question 32

GE invest or not

Answer 32

Upper left is best, and overall, the upper half is solid (invest in). Lower left organizations may have potential? Lower right; Sell. Little potential.

Question 33

strategy formulation types

Answer 33

differentiation, cost cost leadership, focus

Question 34

differentiation

Answer 34

Making organization more competitive by developing
products different from competitors

Question 35

cost leadership

Answer 35

Making organization more competitive by producing
products more cheaply than competitors

Question 36

Focus

Answer 36

Making organization more competitive by targeting a
particular customer

Question 37

growth org strategy

Answer 37

Aim is to increase amount of business

Question 38

Stability org strategy

Answer 38

Maintain or slightly improve amount of business

Question 39

Retrenchment strategy

Answer 39

Strengthen or protect amount of business

Question 40

Divestiture strategy

Answer 40

Eliminate unit(s) not generating satisfactory amount of business

Question 41

interacting skill

Answer 41

Soft skills– Managing and developing staff through
new strategies

Question 42

Allocating Skill

Answer 42

Managing limited resources for maximum return

Question 43

Monitoring Skill

Answer 43

Monitoring processes and results, and identifying
problems or potential opportunities

Question 44

Organizing Skill

Answer 44

Organizing a network of support to call on as needed

Question 45

strategy implementation skills

Answer 45

interacting, allocating, monitoring, organizing

Question 46

strategic controls

Answer 46

-monitoring SMP as a whole
-Checking to see if all steps are appropriate,
compatible, and functioning properly
-Re-visit and evaluate processes to determine if they
are still valid and efficient

Question 47

Competitive Dynamics

Answer 47

Undertaking strategic and tactical actions and how
competitors respond to those actions

Question 48

attacker

Answer 48

First firm to make strategic or tactical action

Question 49

defender

Answer 49

Second firm which must choose whether or not to
respond to the attacker

Question 50

Competitor Awareness

Answer 50

How mindful a company is to competitor’s actions

Question 51

Competitor Motivation

Answer 51

Incentives an organization has to take action

Question 52

Competitor Capability

Answer 52

Firm’s ability (and/or resources) to take an action