lesson 1 Flashcards
understand chapter one
What is strategic planning?
The process of identifying and pursuing the organization’s mission by aligning internal capabilities with external demands.
What does strategic planning set the stage for?
The rest of the planning within the firm.
What are the first steps in strategic planning at the organizational level?
Defining the vision and mission.
What is evaluated after defining the mission in strategic planning?
The current external environment and internal environment.
What process follows environmental scanning in strategic planning?
Strategy formulation.
At what two levels are strategies formulated according to the strategic planning process?
Organizational and functional level (departmental).
What are the three types of organizational strategies according to Michael Porter’s generic model?
- Low cost leadership strategy
- Differentiation strategy
- Focus strategy
What is the objective of a cost leadership strategy?
To attain lower costs than competitors by improving efficiency.
What does a differentiation strategy aim to achieve?
To differentiate a firm’s products and services from those of competitors.
What factors can managers use to differentiate their products?
- Technology
- Customer services
- After sales services
- Product design and quality
What is the focus of a focus strategy?
Paying special attention to a product or a narrow range of products.
What is the goal of the focus strategy?
To better serve the market through concentration of organizational resources.
What are the major functional departments in an organization?
- Research and Development
- Marketing
- Operations
What must each functional department develop after organizational strategies?
Its own functional strategy.
What is the role of the marketing department in relation to other departments?
To ensure that all other departments work with the marketing philosophy in mind.
Fill in the blank: The marketing department focuses on the _______ concept, where the customer is king.
[marketing]
What is the ultimate goal of all departments working in harmony?
To produce value for the customer.
