MGMT Final Ch. 5 Flashcards
Why plan?
It helps us to identify our goals clearly
Strategic Planning
The process of developing a mission and long-range objectives and determining in advance how they will be accomplished
Operational Planning
The process of setting short-range objectives and determining in advance how they will be accomplished
Dimensions of planning
Management level, type of plan, scope, time, repetitiveness
Strategy
A plan for pursuing a mission and achieving objectives
Competitive Advantage
How an organization offers unique customer value
Sustainable Competitive Advantage
How an organization maintains its competitive advantage
Strategic Fit
The degree to which an organization is matching its resources and capabilities with the opportunities in the external environment.
Successful Strategies
Goal commitment + understanding of the competitive environment + objective appraisal of resources & capabilities + effective implementation
Strategy evolves over time…why?
After evaluating organization and competition by completing situational analysis, company should re-evaluate strategy
Strategic planning process
- Identify mission/vision
- Analyze the environment
- Set objectives
- Develop strategies
Porter’s 5 Forces
Competitors (in industry), threat of substitutes, potential new entrants, power of suppliers, power of consumers
PEST Analysis
Political, economic, social, and technological external factors
RBV - Resource Based View
Managerial framework used to determine the strategic resources a firm can exploit to achieve sustainable competitive advantage.
SWOT analysis
Used to determine an organization’s internal environmental strengths and weaknesses and external environmental opportunities and threats
Determine competitive strength/advantage, conclude competitive position, determine issues/problems that need to be addressed
