Mgnted32 Chapter 1, 2 & 4 Flashcards

1
Q

*can be described as the
identification of the purpose of the organization
and the plans and actions to achieve
that purpose.

*is to
bring about the conditions under which the
organization can create this vita
l additional value.

*must also ensure
that the organization adapts to changing circumstances
so that it can continue to add value
in the future.

A

Strategic management

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2
Q

The resources and capabilities of an organization
include its human resource skills, the investment
and the capital in every part of
the organization.

A

RESOURCES STRATEGY

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3
Q

Environment encompasses every aspect external to the
organization itself: not only the economic and
political circumstances, which may vary widely around
the world, but also competitors, customers and suppliers.

A

ENVIRONMENTAL STRATEGY

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4
Q

Add value to the supplies brought into
the organization. To ensure its long-term survival,
an organization must take the supplies it
brings in, add value to these through
its operations and then deliver its output
to the customer.

A

ADDING VALUE

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5
Q

Customers are crucial to strategic management because they make the buying decision, not competitors. This may seem obvious, but much of the literature on strategic management has focused more heavily on competitors than on customers.

A

Existing and new customers

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6
Q

for the long-term survival of the organization, it is important that the strategy is sustainable.

A

Offer sustainable competitive advantage

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7
Q

to deliver the strategy Is at least partly about how to develop organization or allow them to evolve towards their chosen purpose.

A

Implementation processes to deliver the strategy

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8
Q

links that cannot easily be duplicated and will contribute to superior performance. The strategy must exploit the many linkages that exist between the organization and its environment: suppliers, customers, competitors and often the government itself.

A

Exploit linkages between the organization and its environment

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9
Q

the ability to move the organization forward in a
significant way beyond the current environment. This is likely to involve
innovative strategies.

A

Vision and purpose

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10
Q

CORE AREAS OF STRATEGIC MANAGEMENT

A

Strategic analysis
Strategy Development
Strategy Implementation

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11
Q

The organization, its mission and objectives must be examined and analyzed. Strategic management provides value for the people involved in the organization its stakeholders – but it is often the senior managers who develop the view of the organization’s overall objectives in the broadest possible terms.

A

Strategic analysis

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12
Q

The strategy options must be developed and then selected. To be successful, the strategy is likely to be built on the skills of the organization and the special relation- ships that it has or can develop with those outside – suppliers, customers, distributors and government.

A

Strategy development

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13
Q

The selected options now must be implemented. There may be major difficulties in terms of motivation, power relationships, government negotiations, company acquisitions and many other matters.

A

Strategy Implementation

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14
Q

-the environment within which the strategy operates and is developed. In the IBM case during the 1t80s, the context was the fast-changing technological development in personal computers.

A

Context

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15
Q

how the actions link together or interact with each other as the strategy unfolds against what may be a changing environment.

A

Process

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16
Q

the main actions of the proposed strategy. The content of the IBM strategy was the decision to launch the new PC and its subsequent performance in the marketplace.

A

Content

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17
Q

TWO MAIN APPROACHES TO STRATEGIC MANAGEMENT DEVELOPMENT:

A

The Prescriptive Approach
The Emergent Approach

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18
Q

takes the view that the three core elements are linked together sequentially.

A

The Prescriptive Approach

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19
Q

regards the three core areas as being essentially interrelated.

A

The Emergent Approach

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20
Q

-means everything and everyone outside the organisation: competitors,
customers, suppliers plus other influential institutions such as local and national governments.

  • understanding of the competitive environment is an essential element of the development of strategic management
A

Competitive Environment

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21
Q

– exploring the skills and resources available inside the organisation (e.g.
human resources, plant, fi nance).

A

Analysis of resources

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22
Q

is an advantage over competitors that cannot easily be imitated.

A

sustainable competitive advantage

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23
Q

environment can usefully be predicted for many market. (prescriptive strategists )
Prediction is inaccurate because the environment is chaotic (emergent strategists )

A
  1. The prescriptive versus emergent debate .
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24
Q

all strategists regard the environment as uncertain.

A
  1. The uncertainty
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25
Q

One solution to the problem posed by such a wide range of factors might be to produce a list of every element.

A
  1. The range of influences
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26
Q

Two types of results from the analysis:

A

Proactive outcomes
Reactive outcomes

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27
Q

The environmental analysis will identify positive opportunities or negative threats.

A

Proactive outcomes

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28
Q

The environmental analysis will highlight important strategic changes over which the organisation has no control but to which, if they happen, it will need to be able to react.

A

Reactive outcomes

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29
Q

Three Areas

A

Market definition and size
Market growth
Market Share

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30
Q

it helps in developing sustainable competitive
advantage, identifies opportunities and threats and may provide opportunities for productive
co-operation with other organisations.

A

Environmental Analysis

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31
Q

What is the size of the market? , how to define the ‘market’.
The answer will depend on the customers and the extent to which other products are a real substitute.

A

Market definition and size

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32
Q

To estimate how much the market has grown over the previous period – usually the previous year.

A

Market growth

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33
Q

Large share may make it possible to influence prices and may also reduce costs through scope for economies of scale, thereby increasing profitability.

A

Market Share

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34
Q

it is important to consider the basic conditions surrounding the organisation.

if the forces are exceptionally turbulent, they may make it difficult to use some of the analytical techniques.

A

Degree of Turbulence in the Environment

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35
Q

Two Main Measures:

A

Changeability
Predictability

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36
Q

the degree to which the environment is likely to change.

A

Changeability

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37
Q

the degree to which such changes can be predicted.

A

Predictability

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38
Q

Changeability comprises:

A

Complexity
Novelty

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39
Q

the degree to which the organisation’s environment is affected by factors such as internationalisation and technological, social and political complications.

A

Complexity

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40
Q

the degree to which the environment presents the organisation with new situations.

A

Novelty

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41
Q

Predictability comprises:

A

rate of change of the environment (from slow to fast);

Visibility of the future in terms of the availability and usefulness of the information used to predict the future.

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42
Q

scenario is a model of a possible future environment for the organisation, whose strategic implications can then be investigated.

Scenarios are concerned with peering into the future, not predicting the future.

The aim is not to predict but to explore a set of possibilities;

A

Scenario-based Analysis

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43
Q

is a model of a possible future environment for the organisation, whose strategic implications can then be investigated.

A

Scenario

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44
Q

are concerned with peering into the future, not predicting the future.

A

Scenarios

45
Q

Key Factors For Success In The Industry

A

Customers
Competition
Corporation

46
Q

five basic forces :

A

The bargaining power of suppliers;
The bargaining power of buyers;
The threat of potential new entrants;
The threat of substitutes;
The extent of competitive rivalry.

47
Q

Porter argued that there were seven major sources of barriers to entry:

A

Economies of scale .
Product differentiation .
Capital requirements .
Switching costs .
Access to distribution channels .
Cost disadvantages independent of scale .
Government policy .

48
Q

co - operation between the organisation and others in its environment
is also important as:

A

CO-OPERATIVE ENVIRONMENT

49
Q

are those companies whose products add more value to the products of the base organisation than they would derive from their own products by themselves.

A

Complementors

50
Q

is an advantage over competitors that cannot easily be imitated.

A

Sustainable competitive advantage

51
Q

is time-consuming but vital to the development of strategic management.

A

Competitor profiling

52
Q

Aspects Of The Competitor’s Organisation Need To Be Explored:

A

Objectives .
Resources .
Past record of performance
Current products and services
Links with other organisations
Present strategies

53
Q

is the identification of specific groups (or segments) of customers who respond to competitive strategies differently from other groups.

A

Market segmentation

54
Q

The three prescriptive stages are:

A

Identify market segment(s) .
Evaluate segment(s) .
Position within market segment

55
Q

There are four important characteristics of any segment in strategic customer analysis:

A

Distinguishable .
Relevant to purchasing .
Sufficiently large
Reachable

56
Q

is the choice of differential advantage possessed by an organisation that allows it to compete and survive in a market place or in a segment of a market place.

A

Competitive positioning

57
Q

explores how the organization takes goods from its suppliers
and turns them into finished goods and services that are then
sold to its customers

A

VALUE-ADDED

58
Q

attempts to find the special resources that enable the
organization to compete

A

Competitive advantage

59
Q

are those assets that
deliver value added to
the organization.

A

RESOURCES

60
Q

are those management skills,
routines, and leadership that
deploy, share, and generate
value from the resources of the
organization

A

CAPABILITIES

61
Q

are the physical resources of the
organization that contribute to
its value added.

A

TANGIBLE RESOURCES

62
Q

are those resources that have no
physical presence but represent real
benefits to the organization, like
brand names, service levels, and
technology.

A

INTANGIBLE RESOURCES

63
Q

are the skills, routines, management,
and leadership of the organization.

A

ORGANIZATIONAL
CAPABILITIES

64
Q

KEY FACTORS FOR SUCCESS

A

▪ RESEARCH AND DEVELOPMENT
▪ MARKETING AND SALES
▪ HUMAN RESOURCES
▪ MANUFACTURING
▪ DISTRIBUTION AND LOGISTICS

65
Q

the ‘centres for excellence

A

Research and
Development

66
Q

the ability to develop effective
advertising campaigns

A

Marketing and
Sales

67
Q

the skills and knowledge
to motivate and retain
employees

A

Human
resources

68
Q

the skills required to
operate large and
complex manufacturing
facilities

A

Manufacturing

69
Q

the capability of coordinating,
stocking, and transporting

A

Distribution
and Logistics

70
Q

concerns
the choice that every organization has of either
making its own products or services or buying
them from outside

A

MAKE-OR-BUY DECISION

71
Q

identifies where the value is added to an
organization and links the process with
the main functional parts of the
organization.

A

VALUE CHAIN

72
Q

shows the wider routes in an industry that
add value to incoming supplies and
outgoing distributors and customers. It
links the industry value chain to that of
other industries.

A

VALUE SYSTEM

73
Q

stresses the importance of the
individual resources of the
organization in delivering the
competitive advantage
and value-added to the
organization.

A

RESOURCE-BASED
VIEW (RBV)

74
Q

is an advantage over competitors that cannot
easily be imitated

A

SUSTAINABLE COMPETITIVE ADVANTAGE

75
Q

This is the development of
unique features or attributes
in a product or service

A

DIFFERENTIATION

76
Q

The development of low cost production enables the
firm to compete against
other

A

LOW COSTS

77
Q

A company may select a
small market segment and
concentrate all it’s efforts on
achieving advantages in this

A

NICHE MARKETING

78
Q

Special levels of performance or
service can be developed that
simply cannot be matched by
other companies

A

HIGH PERFORMANCE OR
TECHNOLOGY

79
Q

Some companies offer a
level of quality that others
are unable to match.

A

QUALITY

80
Q

Some companies have
deliberately sought to provide
superior levels of service that
others have been unable or
unwilling to match.

A

SERVICE

81
Q

The backward acquisition of raw
material suppliers and/or the
forward purchase of distributors
may provide advantages that
others cannot match.

A

VERTICAL INTEGRATION

82
Q

combination of parts of a
business such that the sum
of them is worth more
than the individual parts

A

SYNERGY

83
Q

The way that an organization
leads, trains, and supports its
members may be a source of
advantage that others cannot
match.

A

CULTURE, LEADERSHIP,
AND STYLE OF AN
ORGANIZATION

84
Q

The seven elements of resource-based sustainable competitive advantage

A

Prior or Acquired Resources
Innovative Capability
Being Truly Competitive
Substitutability
Appropriability
Durability
Imitability

85
Q

Value creation is more likely to
be successful if it builds on the
strengths that are already
available to the organization

A

Prior or Acquired Resources

86
Q

It is particularly likely to
deliver a real breakthrough
in competitive advantage

A

INNOVATIVE CAPABILITY

87
Q

It is essential that any resource
delivers a true advantage over
the competition.

A

BEING TRULY COMPETITIVE

88
Q

Resources are more
likely to be
competitive if they
cannot be substituted.

A

SUBSTITUTABILITY

89
Q

Resources must deliver
the results of their
advantage to the
individual company
and not be forced to
distribute at least part
of it to others

A

APPROPRIABILITY

90
Q

Useful resources must
have some longevity

A

DURABILITY

91
Q

Resources must not be
easy to imitate if they
are to have a
competitive
advantage.

A

IMITABILITY

92
Q

Some form of specific
differentiation

A

TANGIBLE UNIQUENESS

93
Q

It may not be obvious to
competitors what gives a
resource its competitive edge.

A

CASUAL AMBIGUITY

94
Q

when the market has limited or
unknown growth prospects and it is
diff cult to make a small initial
investment

A

INVESTMENT DETERRENCE

95
Q

a mechanism
for testing competitive resources

A

The VRIO Framework

96
Q

allow a firm to choose strategies that exploit environmental opportunities or
neutralize a competitive threat.

A

VALUABLE

97
Q

An organization’s resource
needs to be rare.

A

Rare

98
Q

An organization’s resource needs
to be costly to imitate.

A

CANNOT BE IMITATED

99
Q

An organization needs to be able to
organize itself to exploit its valuable,
rare, and inimitable resources.

A

ORGANIZING CAPABILITY

100
Q

the physical resources of the
organization.

A

TANGIBLE RESOURCES

101
Q

the many other resources that are
important but are not physically
present.

A

INTANGIBLE RESOURCES

102
Q

the skills, structures, and leadership of the
organization that bind all its assets
together and allow them to interact
efficiently.

A

ORGANIZATIONAL CAPABILITIES

103
Q

are a group of
production skills and technologies that
enable an organization to provide a
particular benefit to customers

A

CORE COMPETENCIES

104
Q

Competencies must
make a real impact
on how the customer
perceives the
organization and its
products or services.

A

CUSTOMER VALUE

105
Q

This must be
competitively unique.

A

COMPETITOR
DIFFERENTIATION

106
Q

Core skills need to
be capable of
providing the basis
of products or
services that go
beyond those
currently available.

A

EXTENDABLE

107
Q

There are at least three ways to
improve sustainable competitive
advantage (SCA):

A

benchmarking,
exploiting existing resources,
and upgrading resources.

108
Q

the comparison of practice with that of other
organizations in order to identify areas for
improvement.

A

Benchmarking

109
Q

there are three main methods: developing new
resources, enhancing those threatened by
competitors, and adding complementary
resources.

A

UPGRADING
RESOURCES