Final Flashcards
Strategy FORMULATION does what and what does it focus on?
Positions forces before the action
Focus: Effectiveness
Strategy IMPLEMENTATION does what and what does it focus on?
Manages forces during the action.
Focus:Efficiency
Strategy formulation is primarily an???
Intellectual process
Strategy implementation is primarily????
An operational process.
Strategy formulation requires???
Good intuitive and analytical skills.
Strategy implementation requires???
Special motivation and leadership skills.
An effective product positioning strategy meets what two criteria?
Distinguishing from competition
Leads customers to expect slightly less service than a company can deliver.
What are the three main approaches of business worth?
What a firm owns
What a firm earns
What a firm will bring to market
What are the 7 R&D principles?
1) Emphasize products
2) Stress basic or applied research
3) Be leaders or followers of R&D
4) Develop robotic processes
5) Spend high, average, low money on R&D
6) Perform R&D internally or contract out
7) Use university researchers.
3 approaches to R&D are?
1) Be first to market new tech products
2) Be an innovative imitator of excuses products, minimizing the risks and costs of start up
3) Be a low cost producer
What is the most important factor in differentiating successful from unsuccessful firms?
Having a MIS (management information system)
What is business analytics and what is another name for it?
A management information system technique that involved using software to Mike huge volumes of data and it is also called machine learning.
What is a key distinguishing feature of business analytics?
It is predictive rather than retrospective
Strategy evaluation includes what 3 basic activities?
1) Examining the underlying bases of a firms strategy
2) Comparing expected and actual results
3) Taking corrective action to ensure performance conforms to plans.
Consonance and advantage are mostly based on what?
A firms external assessment
Consistency and feasibility are largely based on what?
An internal assessment
The process of evaluation should include what 3 things?
Strategy evaluation
stimulate creativity
Formulating criteria
Successful evaluating strategies combine what two things?
Patience and willingness to take correct action
In measuring organizational performance, strategists use common quantitative criteria to make what three critical comparisons?
Comparing the firms performance:
Over Time periods
Competitors
Industry averages
Most quantitative criteria are geared to annual objectives rather than?
long-term objectives
Intuitive judgements are almost always involved in?
Deriving quantitative criteria
What does a balanced scorecard tell us?
How well the firm is continually improving and creating values .
What are the balanced scorecard categories?
Innovation, technological leadership, product quality, operational process efficiencies
What is the aim of the balanced scorecard approach of strategy evaluation?
to balance short/long term concerns, financial:non-financial concerns, and internal/external concerns
What are the five characteristics of an effective evaluation system?
1) Strategy evaluation activities must be economical
2) activities should be meaningful
3) Activities should provide timely information
4) activities should be designed to provide true picture of what is happening
5) Activities should not dominate decisions
What are the seven principles of admirable business ethics?
1) Trustworthiness
2) Open-mindedness
3) Honor all commitments
4) Do not mispresent/exaggerate/mislead any print materials
5) Be a responsible community citizen
6) Use accoutning practices to identify and eliminate questionable activities
7) Follow the golden rule
What are some strategies used for environmental affairs?
developing green businesses
divesting or altering environment damaging businesses
become low cost producer through reduced waste and energy conservation
differentiation strategy through green product features.
What are some reasons a firm should be “green”?
consumer demand for safe products
public opinion
environmental groups
federal and state regulations
liabilities
lenders examining environmental liabilities
What does ISO: 1400 mean?
means a firm minimizes harmful effects on environment caused by its activities and continually monitors and improves its environmental performance.
What does ISO: 1401 mean?
This certifies that the firm is conducting business in an environmentally friendly manner and results in an environmental management system
What are the major requirements of an EMS?
prevention of pollution
continuous environmental performance
compliance with statutory and regulatory requirements
Setting targets for the above
Conducting an audit operation on EMS, and taking corrective actions
Three disadvantages of international operations?
Foreign operations could be seized by factions
Different views, politics, technologies, and legalities
Competitors in foreign lands are often:
Weakness= overestimated
Strengths=underestimated
What are three GLOBAL challenges?
America’s economy is becoming less American
World’s economy and monetary system are emerging
Markets are shifting rapidly and converging in taste, trends, price
What is globalization?
process of doing business worldwide
What is global strategy?
this includes designing, producing, and marketing products with global needs in mind.
What is QSPM?
Quantitative Strategic Planning Matrix, used to evaluate alternative strategies.
What is SPACE?
Strategic Position and Action Evaluation, used to assess an organization’s competitive advantage
