MGMT 3000 Chapter 8 Flashcards
how important is strategic management?
it determines which organizations succeed and which ones struggle
what means taking the long term view and seeing the big picture, including the organization and the competitive environment and considering how they fit together?
strategic thinking
is strategic thinking good for both businesses and nonprofits?
yes
in for profit firms, what does strategic planning refer to?
pertains to competitive actions in the marketplace
in non profit firms, what does strategic planning refer to?
pertains to events in the external environment
what refers to the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals ?
strategic management
what questions do managers ask when using strategic management?
○ What changes and trends are occurring in the competitive environment?
○ Who are our competitors, and what are their strengths and weakness?
○ Who are our customers?
○ What products or services should we offer?
○ What does the future hold for our industry and how can we change the rules of the game?
what is the first step in strategic management which is the plan of action that describes resource allocation and activities for dealing with he environment, achieving a competitive advantage, and attaining the organizations goals
strategy
what refers to what sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace ?
competitive advantage
what are the elements of competitive advantage?
- target customers
- exploit core competence
- achieve synergy
- create value
what are the three levels of strategy in organizations?
- corporate level
- business- level
- functional- level
what question do we ask for corporate level strategy?
what business are we in?
what question do we ask for business level strategy?
how do we compete?
what question do we ask for functional level strategy?
how do we support the business level strategy?
what aspects are with business level strategy?
- consumers product unit
- biotechnology unit
- media unit
what pertains to the organization as a whole and the combination of business units and product lines that makes up the corporate entity?
corporate level strategy
what level of strategy pertains to each business unit or product line?
business level strategy
what level of strategy pertains to the major functional departments within the business unit?
functional level strategy
what is swot analysis?
includes a careful assessment of the strengths, weaknesses, opportunities and threats that affect organizational performance
what are the internal aspects of SWOT?
strengths and weaknesses
what are the external aspects of SWOT?
opportunities and threats
what comprises the planning and decision making that lead to the establishment of the firms goals and the development of a specific strategic plan?
strategy formulation
what is the use of managerial and organizational tools to direct resources toward accomplishing strategic results?
strategy execution
strategy execution is the administration and implementation of the strategic plan true or false?
true
what are the 3 approaches to formulating the corporate level strategy?
- portfolio strategy
- the BCG Matrix
- diversification
what is a division in the business unit that has a unique business mission, product line, competitors and markets relative to other SBUs in the corporation ?
strategic business units (SBUs)
what pertains to the mix of SBUs and product lines that fit together in a logical way to provide synergy and competitive advantage ?
portfolio strategy
what is a concept that evaluates strategic business units with respect to two dimensions (business growth rate and market share) and classifies them as cash cows, stars question marks or dogs?
BCG matrix
what are the 2 dimensions of the BCG matrix?
market share and business growth rate
what has high market share and high business growth rate?
stars
what has high market share and low business growth rate?
cows
what has low market share and high business growth rate?
question marks (bright prospects)
what has low market share and low business growth rate?
dogs
what is diversification?
the strategy of moving into new lines of business
what type of diversification is when the business is related to the company’s existing business activities, the organization is implementing a strategy of related diversification?
related diversification
what type of diversification occurs when an organization expands into a totally new line of business?
unrelated diversification
what is vertical integration?
the company expands into businesses that either produce the supplies needed to make its products and services or that distribute and sell those products and services to customers
what is the concern with formulating business level strategy?
concern is how to compete
what is the popular model for formulating business strategy ?
Porters 5 forces
what are porters 5 forces?
- rivalry among competitors
- potential new entrants
- bargaining power of buyers
- bargaining power of suppliers
- threat of substitute products
what are porters competitive strategies?
- differentiation
- cost leadership
- focus
what quadrant is the differentiation strategy in?
1
what type of competitive strategy involves an attempt to distinguish the firms products or services from others in the industry?
differentiation strategy
what quadrant is cost leadership strategy in?
2
what type of competitive strategy is when the organization aggressively seeks efficient facilities, pursues cost reductions and uses tight cost controls to produce products more efficiently than competitors?
cost leadership
what quadrant(s) is focus strategy in?
quadrant 3 (differentiation) and quadrant 4 (cost leadership)
what competitive strategy is when the organization focuses on a specific regional market or buyer group ?
focus
what global strategy treats the world as a single global marketing?
globalization strategy
what type of global strategy has a High need for global integration, low need for national responsiveness?
globalization
what type of global strategy handles markets independently for each country ?
multi domestic
what type go global strategy has Low need for global integration, high need for national responsiveness
?
multi domestic
what type of global strategy seeks to balance global efficiencies and local responsiveness?
glocalization
what type of global strategy has a High need for global integration, high need for national responsiveness
?
glocalization
what is the final step of strategic management?
strategy execution
what is how strategy is implemented and put into action?
strategy execution
what is ○ A deep understanding and acceptance of organizational direction and purpose throughout the organization
?
embeddedness
when strategy is ____ everyones daily decisions and actions help move the firm in the right direction, toward achieving important goals?
embedded
what are factors that contribute to the failure of strategy execution?
- employee resistance (39%)
- manager behavior doesn’t support new direction (33%)
- inadequate budget or resources (14%)
what are the tools for putting strategy into action?
- visible leadership
- clear roles and accountability
- Human Resources
- candid communication
