lecture 5( strategic management) Flashcards

1
Q

Strategies

A

The decisions and actions that determine the long-run performance of an organization

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2
Q

Strategic Management

A

Is the process that managers do to develop an organization’s strategies.

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3
Q

Why is strategic management important?

A

1-It results in higher organizational performance
2-It requires that managers examine and adapt to business environment changes
3-It coordinates diverse organizational units

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4
Q

The strategic management process is a six-step process that encompasses

A

1-identifying the organization’s mission, goals, and strategies
2-swot analysis
3-formulate strategies
4-implement strategies
5-evaluate results

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5
Q

Mission

A

a statement of the purpose of an organization

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6
Q

Goals

A

Measurable performance targets that sets the foundation for further planning

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7
Q

Opportunities

A

External factors in the business environment or general environment that are likely to contribute to the success of the organization

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8
Q

Threats

A

External factors that you have no control over and could affect the organization negatively

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9
Q

Strengths

A

create value for the customer and strengthen the competitive position of the firm.

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10
Q

Weaknesses

A

can place the firm at a competitive disadvantage
Analyzing financial and physical assets is fairly easy, but assessing intangible assets (employee’s skills, culture, corporate reputation) isn’t as easy.

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11
Q

Formulating Strategies

A

Develop and evaluate strategic alternatives.

Select appropriate strategies for all levels in the organization that provide relative advantage over competitors.

Match organizational strengths to environmental opportunities.

Correct weaknesses and guard against threats

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12
Q

what are the three types of organizational strategies?

A

1-corprate
2-competitive
3-functional

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13
Q

Corporate Strategy

A

A corporate strategy is one that specifies what businesses a company is in or wants to be in and what it wants to do with those businesses.

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14
Q

Types of Corporate Strategy

A
  1. Growth
  2. Stability
  3. Renewal
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15
Q

Growth

A

expansion into new products and markets

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16
Q

Stability

A

maintenance of the status quo

17
Q

Renewal

A

examination of organizational weaknesses that are leading to performance declines

18
Q

Types of Growth Strategy

A

1-Concentration
2-Vertical Integration
3-Horizontal Integration
4-Diversification

19
Q

Concentration

A

Focusing on a primary line of business and increasing the number of products offered or markets served

20
Q

Vertical Integration

A

Backward vertical integration: attempting to gain control of inputs

Forward vertical integration: attempting to gain control of output through control of the distribution channel

21
Q

Horizontal Integration

A

Combining operations with another competitor in the same industry to increase competitive strengths and lower competition

22
Q

Diversification

A

Expanding by combining with firms in different, but related industries that are “strategic fits”.

23
Q

Stability Strategy

A

Managers want to maintain the status quo to deal with the uncertainty of a dynamic environment.

24
Q

Renewal Strategies

A

Developing strategies to counter organization weaknesses that are leading to performance declines.

25
Q

two types of renewal strategy

A

Retrenchment and Turnaround

26
Q

Retrenchment

A

Focusing of eliminating non-critical weaknesses and restoring strengths to overcome current performance problems

27
Q

turnaround

A

Addressing critical long-term performance problems through the use of strong cost elimination measures and large-scale organizational restructuring solutions.

28
Q

BCG Matrix

A

Considers market share and industry growth rate.

29
Q

whats in the BCG matrix

A

Cash cows: low growth rate, high market share

Stars: high growth rate, high market share

Question marks: high growth rate, low market share

Dogs: low growth rate, low market share

30
Q

Competitive Strategy

A

A strategy focused on how organizations will compete in its business.

31
Q

difference of competitive strategies for one business and multi-businesses

A

For an organization in only one line of business, the competitive strategy describes how it will compete in its primary or main market.

For organizations in multiple businesses, Each business can have its own competitive strategy that defines its competitive advantage

32
Q

What is Competitive Advantage

A

Competitive Advantage sets an organization’s distinctive competitive edge.

That distinctive edge comes from the organization’s core competencies because the organization does something that others cannot do or does it better than others can do it.

33
Q

What is Sustained Competitive Advantage

A

Continuing over time to effectively exploit resources and develop core competencies that enable an organization to keep its edge over its industry competitors.

34
Q

why is it not easy to create a sustainable competitive advantage

A

due to market instabilities, new technology, and other changes.

35
Q

Types of Competitive Strategies

A

Cost Leadership Strategy
Differentiation Strategy
Cost-Focus Strategy
Differentiation-Focus Strategy

36
Q
A