MGT 5 Strategies in Action Flashcards
These represent the results expected from pursuing certain strategies.
Long term Objectives
In large firms how many levels of strategy are there?
- Corporate, Divisional, Functional, Operational
This type of integration involves gaining ownership or increased control over distributors or retailers.
Forward Integration
(Basically going from just making the product, to also selling it)
Who argues that bonuses or merit pay for managers today must be based to a greater extent on long term objectives and strategies?
Arthur D. Little
What objectives include those associated with growth in revenues, earnings, higher dividends, profit margins, etc.?
Financial Objectives
Long term objectives are needed at what levels of an organization?
Corporate, Divisional, and Functional levels
When and who developed the Balanced Scorecard?
It was developed in 1993, by Harvard Business School professors Robert Kaplan and David Norton
What objectives includes things like higher market share and product quality, higher QoL compared to rivals, etc.?
Strategic Objectives
2 types of objectives that are especially common in organizations.
Financial and Strategic Objectives
This type of managing by objectives follows the idea of continuing to do the same things in the same ways because things are going well.
Managing by Extrapolation
Managing by Crisis is a form of reacting rather than acting and letting events dictate the what and when of management decisions.
This is a statement, might appear on true and false.
This type of managing by objectives is built on the idea that there is no general plan for which way to go and what to do; just do the best you can to accomplish what you think should be done.
Managing by Subjectives
Who explained that strategic planning involves “choices that risk resources” and “tradeoffs that sacrifice opportunity”?
Hansen and Smith
What principle does Managing by Extrapolation adhere to?
It adheres to the principle “If it ain’t Broke, don’t fix it”
What do the ff acronyms mean?
CIM
TQM
CEO
CFO
CIO
CMO
HRM
RIM
LBO
BPO
In the same order they mean,
Continuous improvement in Management
Total quality Management
Chief Executive Officer
Chief Finance Officer
Chief Information Officer
Chief Marketing Officer
Human Resource Manager
Research in Motion (Canadian Company)
Leveraged Buyout
Business Process Outsourcing
This type of managing by objectives is based on the belied that the true measure of a really good strategist is the ability to solve problems.
Managing by Crisis
This type of managing by objectives is based on the fact that the future is laden with great uncertainty and that if we try and do not succeed then we will hope that our second (or third) attempt will succeed.
Managing by Hope
This is a strategy evaluation and control technique of where its name was derived from the perceived need of firms to “Balance” financial measures.
The Balanced Scorecard
What is the overall aim of the balanced scorecard?
To balance shareholder objectives with customer and operational objectives.
Many if not most orgs simultaneously pursue a combination of two or more strategies, but a combination strategy may be very risky if taken too far.
This is a statement, may appear on true and false
For small firms how many levels of strategy are there?
- Company, Functional, Operational
Strategy planning is much more than a roll of the dice. It is a wager based on predictions and hypothesis
This is a statement, may appear on true and false
This group of integration strategies allow a firm to gain control over distributors, suppliers, and/or competitors.
Vertical Integration strategies
What is an effective means of implementing forward integration?
Franchising
What type of integration strategies collectively make up Vertical Integration?
Forward Integration
Backward Integration
Horizontal Integration
Who said “Keeping track of so many suppliers is onerous”
Mark Shimelonis
This type of integration strategy of seeking ownership or increased control of a firm’s suppliers
Backwards integration
(basically from selling the product, to also making it)
An unrelated diversification strategy favors capitalizing on a portfolio of businesses that are capable of delivering excellent financial performance in their respective industries.
This is a statement, may appear on true and false
This type of integration strategy refers to seeking ownership or increased control over a firm’s competitors.
Horizontal Integration
(basically, owning the competition)
What type of integration strategies falls under defensive strategies
Retrenchment
Divestiture
Liquidation
Who made an observation about horizontal integration?
Kenneth Davidson
This type of integration strategy seeks to increase market share for present products or services through greater marketing efforts.
Market Penetration
(Market Coke to be more popular)
This group of integration strategies are defined as so because they require intensive efforts if a firms competitive position with existing products is to improve
Intensive Strategies
What type of integration strategies falls under Intensive Strategies?
Market Penetration
Market Development
Product Development
This occurs when an organization regroups through cost and asset reduction to reverse declining sales and profits.
Retrenchment
This type of Integration strategy involves introducing present products or services into new geographic areas.
Market Development
(Take Coke to China for even more popularity)
This type of integration strategy seeks increased sales by improving or modifying present products or services.
Product Development
(Make Coke 2.0)
The 2 general types of diversification strategies
Related and Unrelated
Businesses are ___ when their value chain posses competitively valuable cross business strategic fits.
Related
Businesses are ____ when their value chains are so dissimilar that no competitively viable cross business relationship exists.
Unrelated
Who said “Management found it couldn’t manage the beast”
Michael Porter
Diversification strategies are becoming less popular as companies are finding it more difficult to manage diverse business activities (The reversal happened in the 1980s)
This is a statement, may appear on true and false
What are other names for retrenchment?
Turnaround or Reorganizational Strategy
Divestiture is often used to?
To raise capital for further strategic acquisitions or investments.
In some cases, this can be an effective retrenchment strategy, because it can allow a firm to avoid major debt obligations and to void union contracts.
Bankruptcy
Selling a division or part of a company is called?
Divestiture
Selling all of a company’s assets in parts for their tangible worth is called?
Liquidation
This type of bankruptcy is a liquidation procedure used only when a corporation sees no hope of being able to operate successfully.
Chapter 7 Bankruptcy
Liquidation is what?
A recognition of defeat and as such may be an emotionally difficult strategy.
This type of Bankruptcy was created by the Family Farmer Bankruptcy act of ____ and provides special relief to family farmers with debts equal to or less than ____
Chapter 12, act of 1986, equal or less than 1.5 million USD
This type of bankruptcy applies to municipalities
Chapter 9 Bankruptcy (some states don’t allow municipalities to declare bankruptcy)
What does focus mean in the context of Porter’s 5 generic strategies
Focus is producing products and services that fulfill the needs of small groups of consumers.
This type of bankruptcy allows organizations to reorganize and come back after filing a petition for protection
Chapter 11 Bankruptcy
Example of Turbulent, High Velocity Markets
Pharmaceuticals, Computer Hardware, and basically all internet based industries, etc.
This type of bankruptcy is a reorganization plan similar to Ch 11, but is only available to individuals with ____________
Ch 13, available to small businesses with unsecured debts less than 100k USD and secured debts of less than 300k USD
According to Porter, strategies can allow organizations to gain competitive advantage from three different bases, what are those bases and what does Porter call them?
Cost leadership
Differentiation
Focus
Porter calls them generic strategies
What are the 5 types of differentiation strategies?
Cost leadership
Type 1: Is a low cost strategy to offer products at the lowest price in the market
Type 2: Is a best value strategy to offer products to a wide range of customers at the best price/value on the market
Differentiation
Type 3: Aimed at producing products and services considered to be unique in the industry
Focus
Type 4: Low cost focus strategy, making products for a niche group at the lowest price
Type 5: Best value focus strategy, sometimes called focus differentiation.
When can a cost leadership easily defeat a differentiation strategy?
When the unique product isn’t valued enough to justify a higher price
What di researchers call markets that change so fast?
Turbulent, High Velocity Markets
What are the means for achieving successes are there? (In the book at least)
- Cooperation Among Competitors
- Joint Venture/Partnering
- Merger/Acquisition
- First Mover Advantage
- Outsourcing
This occurs when 2 organizations of about equal size unite to form 1 enterprise
Merger
This is a popular strategy that occurs when 2 or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity.
Joint Venture/Partnering
This occurs when a corporation’s shareholders are bought by the company management using borrowed funds
Leveraged Buyout
This occurs when a large organization purchases a smaller firm or vice versa
Acquisition
This refers to the benefits a firm may achieve by entering a new market or developing a product prior to rival firms
First Mover Advantage
What is a term used to describe a firm that agrees to acquire a firm that is currently under hostile takeover, and they acquire them with better terms.
White Knight
When a merger or acquisition is desired or not desired by both parties it is called?
Friendly Merger or Hostile Takeover
Other terms for slow mover
Fast Follower or Late mover
This is a rapidly growing new business that involves companies taking over the functional operations of a firm.
Business Process Outsourcing
Who Said the following words?
“Strategies for taking the hill won’t necessarily hold it”
“The early bird gets the worm but the second mouse gets the cheese”
“Even if you’re on the right track, you’ll get run over if you sit there”
“Tomorrow always arrives. It is always different……………………………..”
“Planning. Doing things today to make us better tomorrow……………..”
In the same order
Amar Bhide
Unknown
Will Rogers
Peter Drucker
Eaton Corporation
