Final Flashcards

1
Q

Is a process of formulating, implementing and evaluating cross-functional decisions that enable the organization to define and achieve its mission, and ultimately to create value.

A

Strategic Management

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2
Q

The strategic management process is comprised of ____ interrelated steps.

A

Five

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3
Q

What are the 5 steps that the strategic management process is comprised of?

A
  1. Establish the vision and mission of the organization
  2. Perform a situation analysis
  3. Set objectives and craft a strategy
  4. Implement the strategy
  5. Asses the success of the strategy
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4
Q

What is the primary focus and the ultimate outcome of successful strategic management?

A

Value Chain

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5
Q

Is the means to achieve its vision, mission, and objective:

A

Strategy

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6
Q

What are the three levels of strategy?

A
  1. Corporate or organizational
  2. Business Unit
  3. Functional
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7
Q

Strategic decisions set or influence the future direction of the organization.

A

Directive

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8
Q

Strategic decisions require the cooperation and coordination of multiple functions and activities across the organization.

A

Cross-functional

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9
Q

Strategic decisions require resource commitments by the organization. Strategies must be financed (internally or externally), investments are made and operations are changed in some way.

A

Resource-dependent

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10
Q

Who is responsible for the strategy and performance of the organization?

A

The senior management team and chief executive officer

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11
Q

What are the four conditions necessary for an exchange?

A
  1. two or more parties have to be able to make the exchange (ability)
  2. They each have to have a desire to exchange (need or desire)
  3. They have to know about what is to be exchanged (awareness)
  4. They have to be willing to make the exchange (willingness)
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12
Q

What are the four Ps?

A

Product, Place, Promotion, and Price

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13
Q

What are the value disciplines, or paths to market leadership?

A
  1. Operational excellence
  2. Customer intimacy
  3. Product leadership
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14
Q

Example of operational excellence?

A

McDonalds

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15
Q

Example of Customer Intimacy?

A

Amazon

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16
Q

Example of Product Leadership?

A

Apple

17
Q

Segmenting and targeting markets precisely and ten tailoring these offerings to match exactly the demands of those niches.

A

Customer intimacy

18
Q

Providing customers with reliable products or services at competitive prices and delivered with minimal difficulty or inconvenience.

A

Operational excellence

19
Q

Offering customers leading-edge products and services that consistently enhance the customer’s use or application in the market, thereby making rivals’ goods obsolete.

A

Product leadership

20
Q

A sustainable enterprise contributes to sustainable development by delivering economic (profit), environmental (Planet), and social (people) benefits.

A

Triple Bottom Line

21
Q

What are the four different growth strategies?

A
  1. Market Penetration
  2. Market Development
  3. Product Development
  4. Diversification
22
Q

Achieving growth by selling more of our existing products in existing markets

A

Market penetration

23
Q

Achieving growth by taking existing products into new markets or market segments.

A

Market Development

24
Q

The creation of new products for markets we currently serve.

A

Product Development

25
Q

Branching out into a new industry; diversification suggests an expansion outside the firm’s current core business(es) into a new product market sector.

A

Diversification

26
Q

How can firms integrate vertically?

A

By acquiring or developing their own sources of supply (known as backward integration) or by acquiring or developing their own distributions or retailers.

27
Q

When a firm acquires one of its competitors, it is pursuing…..

A

Horizontal integration

28
Q

A broad term encompassing many forms of cooperative agreement between two or more organizations.

A

Strategic Alliance

29
Q

A specific kind of strategic alliance with equity contributions from partners to form a third, separate entity that stands alone for a specified time period.

A

Joint Ventures

30
Q

ROE Formula=

A

(Net Profit/Sales) * (Sales/Assets) * (Assets/Equity)

31
Q

What are the four major categories of ratio analysis?

A
  1. Liquidity
  2. Leverage
  3. Activity
  4. Profitability
32
Q

Current Ratio=

A

Current Assets/Current Liabilities

33
Q

Quick Ratio=

A

Current Assets minus inventory/Current Liabilities

34
Q

What are the goals of an external audit?

A
  1. identify and analyze important current issues and trends
  2. articulate or forecast likely emerging issues and trends
  3. Foster strategic thinking and action throughout the organization
  4. Identify opportunities and threats for planning purposes
35
Q

What are the five forces of competition?

A
  1. Rivalry among direct competitors
  2. Power of Suppliers
  3. Power of Customers
  4. Substitute Products or services
  5. Threat of New Entrants
36
Q

Cost advantage due to large size of production, research, and marketing

A

Economies of Scale

37
Q

What are some Barriers to entry?

A
Economies of scale 
product differentiation 
Capital requirements 
Disadvantages other than size 
Distribution channels 
Regulation and/ or licensing requirements
38
Q

What does the External Audit SEES stand for?

A

Scanning, Estimating, Evaluating, and Sharing