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Strategic Management > Handout 7 > Flashcards

Handout 7 Flashcards

1
Q

the investigation, analysis, and decision-making by outlining the company’s competitive advantages, finding areas of weakness that limit its ability to expand, creating the corporate mission, outlining realistic goals and establishing policy standards.

A

Strategy formulation

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2
Q

primary and basic reason for an organization’s existence

A

Purpose

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3
Q

It refers to the desired future state or “big picture” of what an organization desires to achieve.
It is a goal that is massively inspiring, in-depth, and long-term.

A

Vision

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4
Q

A good vision conveys a picture of what the future will be

A

Imaginable

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5
Q

it appeals to the long-term interests of employees, customers, stockholders, and others who have a stake in the enterprise.

A

Desirable

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6
Q

It comprises realistic and attainable goals

A

Feasible

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7
Q

It Is clear enough to guide decision-making

A

Focused

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8
Q

It is general enough to allow individual initiative and alternative responses in light of changing conditions.

A

Flexible

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9
Q

Is easy to communicate; can be successfully explained within five (5) minutes

A

Communicable

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10
Q

more specific and action-oriented than a vision. It outlines the organization’s primary purpose and the basis of competition and competitive advantage

A

Mission

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11
Q

it must be short so that everyone can remember and understand

A

Concise

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12
Q

It should be measurable so that the company can visibly see progress.

A

Outcome-oriented.

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13
Q

It must include all the stakeholders involved in implementing a company’s strategy.

A

Inclusive

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14
Q

These are the specific and measurable results focused on achieving an organization’s mission. This generally guide how the organization can fulfill or move toward the higher goals (mission and vision) in a more specific and well-defined time frame.

A

Strategic Objectives

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15
Q

At least one indicator must measure progress against fulfilling the objective

A

Measurable

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16
Q

This means providing a clear message as to what needs to be accomplished.

A

Specific

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17
Q

It must be consistent with the organization’s vision and mission

A

Appropriate

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18
Q

Given the organization’s capabilities and environmental opportunities, it must be an achievable target. In essence, it must be challenging but doable.

A

Realistic

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19
Q

There must be a time frame for achieving the objective.

A

Timely

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20
Q

primarily about the choice of direction for a firm and the management of its
various product lines and business units for maximum value.

A

Corporate-level strategy

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21
Q

It refers to the firm’s overall orientation toward growth, stability, or retrenchment.

A

Directional strategy.

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22
Q

It includes the industries or markets in which the firm competes through its products and business units.

A

Portfolio analysis

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23
Q

It is how the management coordinates activities, transfers resources, and cultivates capabilities among product lines and business units.

A

Parenting strategy.

24
Q

These refer to the firm’s actions to expand its activities. It is the most widely pursued corporate directional strategy due to its design to achieve growth in sales, assets, and profits.

A

Growth strategies

25
Q

It can be achieved through considerable growth in your respective industry. It means expanding supply chains to reach more outlets, adding new features to existing products, and offering new products in the same market

A

Concentration (Vertical Growth)

26
Q

refers to the process in which a company purchases or internally
produces certain inputs of its supply chain that could be utilized in production.

A

Backward integration.

27
Q

a strategy where the company gains control of the business activities ahead in the value chain.

A

Forward integration

28
Q

It can be achieved by expanding a company’s operation into
other geographic locations or increasing the range of products and services offered to current
markets.

A

Diversification (Horizontal growth.)

29
Q

It can be achieved by expanding the production portfolio by adding new products to fully utilize the potential of existing technologies and marketing systems. It occurs when the organization adds related products or markets to its existing product line.

A

Concentric diversification

30
Q

It can be achieved by moving new products or services that have no technological or commercial relations with current products, equipment, or distribution channels but may appeal to new customers.

A

Conglomerate diversification

31
Q

These refer to the firm’s actions to make no changes in its current activities

A

Stability strategies

32
Q

It is typically conceived as a temporary strategy to be used until the environment becomes more hospitable or to enable a company to consolidate its resources after prolonged rapid growth

A

Pause/Proceed-with-Caution Strategy

33
Q

It is a decision to do nothing new. It is demonstrated by a management’s
choice to continue current operations and policies for a company’s foreseeable future.

A

No-Change Strategy

34
Q

It is a decision to do nothing new in a worsening situation but act as though the company’s problems are only temporary.

A

Profit Strategy

35
Q

These refer to the firm’s actions to pursue cutback or ultimate divestment
when it has a weak competitive position in some or all of its product lines resulting in poor performance

A

Retrenchment strategies

36
Q

It emphasizes improving operational efficiency and is most appropriate to implement when a corporation’s problems are pervasive but not yet critical. Companies improve their performance by cutting costs or selling off assets.

A

Turnaround Strategy

37
Q

the initial effort to quickly “stop the bleeding” with the general purpose of
cutting back on company size and costs.

A

Contraction

38
Q

implements a plan to reduce unnecessary expenses.

A

Consolidation

39
Q

happens if the company is successful with its efforts and starts growing profitably again

A

Rebirth

40
Q

It involves giving up independence in exchange for security. In this way, the corporation may reduce the scope of some of its functional activities to reduce costs significantly.

A

Captive Company Strategy

41
Q

involves selling the entire company to another firm at a good deal, given that the shareholders and the employees can keep their jobs.

A

sell-out

42
Q

involves selling a division of a company with low growth potential.

A

divestment

43
Q

involves giving up management of the firm to the courts in return for some settlement of the corporation’s obligations.

A

Bankruptcy

44
Q

involves the termination of the whole firm.

A

Liquidation

45
Q

top management views its product lines and business units as a series of investments from which it expects a profitable return.

A

portfolio analysis

46
Q

a single business or a collection of related businesses that can be planned separately from the rest of the company. it aims to develop different strategies and assign appropriate funding

A

strategic business unit

47
Q

used relative market share and the annual market growth rate as criteria for investment decisions, classifying SBUs as dogs, cash cows, question marks, and stars.

A

BCG’s Growth-Share Matrix

48
Q

These are products within a company’s product line, which can be considered a market leader since they generate enough cash to maintain their high share of the market and usually contribute to the company’s profits

A

Stars

49
Q

These are new products with the potential for success but need a lot of cash investments for development

A

Question marks.

50
Q

These typically bring in far more money than is needed to maintain their market share. In this maturing or even declining stage of their life cycle, these products are “milked” for cash that will be invested in new question marks

A

Cash cows

51
Q

These have a low market share and do not have the potential to bring in much cash for the company.

A

Dogs

52
Q

generates corporate strategy by focusing on the core competencies of the parent corporation and the value created from the relationship between the parent and its businesses.

A

corporate parenting

53
Q

Corporate headquarters must establish centers of excellence across the corporation.

A

Examine each business unit in terms of its strategic factors.

54
Q

Corporate headquarters must consider
parenting opportunities for the organization.

A

Examine each business for performance improvement.

55
Q

Corporate headquarters must
be aware of its own strengths and weaknesses in terms of resources, skills, and capabilities

A

Analyze how well the parent corporation fits with the business unit.

Strategic Management (8 decks)

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