PRELIM EXAM Flashcards
determines the development of strategies required to define an organization’s mission and accomplish it.
A strategic management model
The process of strategic management has five components which are:
– situation analysis,
- strategic decision making,
- strategy formulation,
- strategy implementation, and
- strategy evaluation or control
is a fundamental feature of the
new economy. As the word
implies carries a note of overexcitement and agitation.
Hyper-competition
occurs when product or service offerings and technologies are so new that standards become unstable and competitive advantage not sustainable.
It is a condition where strategic maneuverings have escalated to bigger business exposure, more sophisticated marketing positioning, aggressive selling, and innovative products and services.
Hyper-competition
is a situation where both globalization and technology collaborate to create a heightened cut-throat situation. It means that businesses compete with
each other whether they have same products, similar products, substitute products, and different products. Competitors continuously strive to outplay and outsmart each other. They
need to devise ways and means to survive and deal with this super competitive and turbulent reality.
hyper-competition
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is a continuous process of strategy creation.
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It involves strategic processes
- like strategic analysis
and
- decision-making,
strategy
- formulation and
- implementation,
and
-strategy control
Strategic management
consists of a systematic evaluation of variables currently existing in the
external and internal environments
Strategic analysis
is deliberately bringing
together the right resources for the right markets at the right time,
strategic decision-making
is designing strategies on the business and corporate levels.
Strategy formulation
is employing these crafted strategies to achieve organizational set goals and objectives
Strategy implementation
is the application of an appropriate monitoring and feedback system.
It is defined as the science
of creating, executing, and evaluating cross-functional decisions to enable an organization to achieve its goals and objectives, the components of the strategic management process have to be effective.
strategic control
If strategic analysis is accurately conducted, organizations can develop….
is the capability of an organization to
possess relevant and related knowledge, abilities, foresight, and systems pressing
thinking, challenges such that it is able to assess its own strengths and vulnerabilities, the confronting the organization, as well as the trends and opportunities existing in the
environment.
Strategic Intelligence
is the cognitive process of competently and
analytically weighing factors and arriving at critical decisions in the context of the current milieu of which an organization is part.
Strategic thinking
pertains to the ability of any business or company to utilize its resources
optimally and sustainably for maximum performance and productivity.
Organizational competitiveness
refers to the ability of an organization
to produce a particular good or services at lower marginal and opportunity costs than its competitors.
Comparative advantage
is the accomplishment of a high level of productivity that is characterized by efficiency in the context of lean and quantifiable management.
Strategic performance
is defined as a continuous, repetitive, and competitive process of
setting the goals and objectives that an organization aims to attain, defining the means to achieve them, and assessing the best way to realize them in the context of the prevailing environment
while measuring performance set standards, and periodically but continuously conducting
reassessments.
strategic planning
prepared in the context of the coming 3 to 5, 10 or more years period. It describes the major factors or forces that affect organization’s long-term objectives, strategies, and resources required.
Medium/Long-range Plan
short term; succinctly describes the organization’s present
situation, its goals and objectives, strategies, monitoring mechanisms, and the budget for the year ahead.
Annual/Yearly Plan
is the process of working with various
teams and individuals to connect their efforts to the organization’s overall goals.
strategic alignment
refers to the factors that affects a company’s operations.
constitutes business environmental factors such as political, economic, social, and global factors.
The external environment
it is constantly changing, influenced by various external factors like
market trends, economic policies, and technological advancements.
Dynamic nature
Multiple factors and their interactions create a complex landscape for
businesses to navigate. This complexity can stem from both internal dynamics and the
external competitive landscape, requiring businesses to employ sophisticated analytical tools to understand and predict environmental impacts.
Complexity
The business environment’s dynamism and complexity continuously change its character and shape.
Multi-faceted
Different segments of the environment are interconnected, meaning changes in one area can affect others.
Interrelatedness
It varies from region to region and country to country, influenced by local
conditions and cultural aspects.
Relativity
refers to the process of collecting data about the business environment (e.g., customers, competitors, or market trends) using various technologies and tools.
This technique aims to
provide information that
will let companies make
better strategic decisions
and adapt to changing
market conditions.
ENVIRONMENTAL SCANNING
refers to the external elements and conditions that affect the tasks,
operations, and performance of the company. It includes financial, mechanical, political, legal, social, and ecological components.
business environment
Micro external forces have an important effect on business operations of a firm. Components of micro environment are:
Suppliers,
Customers,
Marketing Intermediaries,
and Competitors.
Suppliers:
An important factor in the external environment of a firm is the suppliers of its
inputs such as raw materials and components.
firms adopt a strategy of backward integration and set up captive production plants for producing raw materials themselves.
The people who buy and use a firm’s product and services are an important
part of external micro-environment.
Customers:
In a firm’s external environment ____________
play an essential role of selling and distributing its products to the final buyers. __________ include agents and merchants such as distribution firms, wholesalers,
retailers.
are responsible for stocking and transporting goods
from their production site to their destination, that is, ultimate buyers.
Marketing Intermediaries:
Business firms compete with each other not only for sale of their products
but also in other areas.
Competitors:
determines the opportunities for a firm to exploit for promoting its
business and also presents threats to it in the sense that it can put restrictions on the expansion of business activities.
external macro environment
important fact about external macro-environmental forces
they are uncontrollable by the
management of a firm.
Because of the uncontrollable nature of macro forces, a firm has to adjust
or adapt itself to these external forces. External macro-environmental factors are classified into: Economic environment, Social environment, Political and legal, Technological and
Demographic environments.
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includes factors such as economic growth, inflation, unemployment rates, exchange rates, and market demand.
These factors deeply affect various aspects of business operations such as costs,
consumer behavior and profitability.
Economic Environment:
Consumer behavior, preferences and demographics in the market are influenced by the ________ of business. This environment provides insights that aid in creating personalized marketing plans for specific customers.
Social Environment:
