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MS2 > Prelims > Flashcards

Prelims Flashcards

1
Q

• situations in which the leader is the
key force determining the
organization’s success—or lack
thereof.

A

romantic view of leadership

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2
Q

• situations in which external forces—
where the leader has limited
influence—determine the
organization’s success.

A

external control view of leadership

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3
Q

consists of the analyses, decisions,
and actions an organization undertakes in order to create
and sustain competitive advantages.

A

Strategic management

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4
Q

means performing similar
activities better than rivals.

A

Operational effectiveness

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5
Q

individuals, groups, and organizations that have a stake in the success of the
organization.

A

stakeholders

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6
Q

• tailoring actions to the needs of an organization rather than wasting effort, or “doing
the right thing.”

A

effectiveness

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7
Q

• performing actions at a low cost relative to a benchmark, or “doing
things right.”

A

efficiency

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8
Q

• the challenge managers face of both aligning resources to take advantage of existing
product markets and proactively exploring new opportunities.

A

ambidexterity

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9
Q

strategy in which organizational decisions are determined only by analysis.

A

intended strategy

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10
Q

strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences

A

realized strategy

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11
Q

study of firms’ external and internal environments, and their fit with organizational vision and goals.

A

Strategy analysis

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12
Q

decisions made by firms regarding
investments, commitments, and other
aspects of operations that create and
sustain competitive advantage.

A

strategy formulation

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13
Q

actions made by firms that carry out the formulated strategy, including strategic controls, organizational design, and leadership.

A

strategy implementation

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14
Q

the relationship among various participants in determining the direction and performance of corporations. The primary participants are (1) the shareholders, (2) the management (led by the chief executive officer), and (3) the board of directors.

A

Corporate governance

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15
Q

a firm’s strategy for recognizing and responding to the interests of all its
salient stakeholders.

A

stakeholder management

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16
Q

• the expectation that businesses or individuals will strive to improve the overall welfare of society.

A

social responsibility

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17
Q

• assessment of a firm’s financial, social, and environmental performance.

A

triple bottom line

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18
Q

who have significant profit-and-loss responsibility.

A

Local line leaders

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19
Q

who champion and guide ideas, create a learning infrastructure, and establish a domain for taking action.

A

Executive leaders

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20
Q

who, although they have little positional power and formal authority, generate their power through the conviction and clarity of their ideas

A

Internal networkers

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21
Q

organizational goals ranging
from, at the top, those that are
less specific yet able to evoke
powerful and compelling mental
images, to, at the bottom, those
that are more specific and
measurable.

A

hierarchy of goals

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22
Q

organizational goal(s) that evoke(s) powerful and compelling mental images.

A

vision

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23
Q

a set of organizational goals that identifies the purpose of the organization, its basis of competition, and competitive advantage.

A

mission statement

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24
Q

a set of organizational goals that are used to put into practice the mission statement and that are specific

A

strategic objectives

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25
Q

is an economic institution
operating in a socio-economic system.

A

business

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26
Q

should be defined keeping in view its prevailing environment and its needs for survival, growth, and stability, efficiency

A

Objectives

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27
Q

considered to be the primary objective of business.

A

profit motive

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28
Q

People enter into business and stay in
business because they want to earn money, social power and prestige, joy of
achievement and other goals.

A
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29
Q

Every business enterprise has to lay down its multiple objectives to justify its existence.

A
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30
Q

It should earn profit by working under rules and regulations or by following ethical practices.

A

Profitability

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31
Q

Increase in profit, revenue, capacity, number of employees and employee prosperity, etc.

A

Growth

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32
Q

Handling changing
dynamics of markets (continuity of business)- customer satisfaction, creditworthiness, employee satisfaction, etc.

A

Stability

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33
Q

Achieve the best in its field-labor productivity, energy consumption, quality control etc.

A

Efficiency

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34
Q

Capability to survive markets
jolts or shocks. A business should be there with a vision of long-term existence.

A

Survival

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35
Q

refer to the end points towards which all business activities are
directed

A

Objectives

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36
Q

lay down the guidelines for various activities and decide the
direction and amount of efforts needed for these activities.

A

Objectives

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37
Q

Objectives should be feasible and must be expressed in specific terms with a time limit for achievement.

A
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38
Q

Business is an economic activity and its
objectives are mainly economic in
nature.

A

economic objectives

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39
Q

Every entrepreneur undertakes
business activities primarily to earn
profits.

A

Profit Earning

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40
Q

Every business aims to ensure
that it continues to survive
and exist in the future.

A

SURVIVAL

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41
Q

A business needs to add to its
prospects in the long run. For
this, the business must grow and
expand to survive in the long
run- sales volume, increase in
number of employees, market
share, number of products, etc.

A

GROWTH

42
Q

Demand is essential in order to
earn profits. Customers are the
focus of all business activities. A
business enterprise can exist and
grow only when it is able to capture
a big market share, i.e. there are
enough people to buy the products
and services offered by an
enterprise.

A

Creation of Customers

43
Q

Introduction of new ideas or new
methods of production. Innovation
plays a crucial role in increasing
the competitive strength and
improving the image of business
enterprise in the mind of customers.

A

INNOVATION

44
Q

Every business enterprise aims to
make best possible use of physical,
financial and human resources. This
objective can be achieved through –
(a) Employing efficient and
competent work force; (b) Making
full use of installed machinery; (c)
Minimizing wastage of materials.

A

Optimum Utilization of Resources

45
Q

refer to the objectives, which are desired to be achieved for the benefit of the society. Business makes
use of scarce resources of the society. So, society expects something in return for its welfare.

A

Social objectives

46
Q

deals with fulfilling obligations towards the society

A

Social objectives

47
Q

The business should ensure
that there is a regular supply
of useful products with fair
quality and at reasonable
prices. Consider customer
expectations

A

Supply of Quality products at Fair Prices

48
Q

Business enterprise should not
indulge in anti-social and unfair
trade practices like black marketing, hoarding, adulteration, etc. Such practices are not only illegal but also
hamper the image of business
community.

A

Avoidance of Unfair Trade Practices

49
Q

Every business enterprise
should create sufficient
employment opportunities
without any discrimi-nation as
to caste, religion, sex, etc.

A

Generation of Employment Opportunities

50
Q

Business enterprise should take
all reasonable steps to check and
protect environment. It must
make proper arrangement for
disposal of effluents, smoke,
wastes, etc. in order to avoid
various types of pollution.

A

Protection of Environment

51
Q

Many business organizations
engage in various community
services, like setting up
schools, charitable
dispensaries, donating money
for social and religious
activities, etc. Fulfillment of this
objective helps to improve the
reputation and public image of
business.

A

Community Service

52
Q

No business can succeed without
the contribution of its employees. Thus, business should aim to
provide fair wages and
reasonable working and living
conditions to workers.

A

Welfare of Employees

53
Q

refer to the objectives related to the individual needs of the employees of an organization. As employees are one of the most valuable resources for an organization, satisfaction of their objectives is very important.

A

Human or individual objectives

54
Q

Management of a business must set’ Multiple Objectives’ for its long-term
survival and growth.

A

Multiple objectives

55
Q

refers to the position of an
enterprise in relation to its competitors.

A

Market standing

56
Q

A business enterprise must aim to increase its market standing by offering good quality products at reasonable prices and serving them better than competitors.

A
57
Q

All business enterprises require physical resources (like plant, machinery, etc.) and financial resources (i.e. funds) in order to produce and supply goods and services to its customers. Every business enterprise must aim to acquire these resources according to its requirements and must use them efficiently

A

Financial resources

58
Q

is calculated by comparing the value of outputs with the value of inputs. It is used as a measure of efficiency.

A

Productivity

59
Q

All business enterprises need managers to conduct and coordinate business activity. So, every business enterprise must actively work for the development of manager’s performance.

A

Manager Performance and Development

60
Q

on the capital employed is the main objective of every business enterprise. Every business aims to earn a reasonable profit in order to survive and grow in this competing world.

A

Earning profits

61
Q

refers to the obligation of business firms to contribute resources for solving social problems and work in a socially desirable manner.

A

Social responsibility

62
Q

Every business is a part of society as it makes use of scarce resources of the society. So, it must meet the expectations of the society.

A

Social responsibility

63
Q

every business enterprise must aim to improve performance of the workers and to develop positive attitude among them.

A

Worker Performance and Attitude

64
Q

How to set business objectives

A
  1. Establish clear goals
  2. Set a baseline
  3. Involve players at all levels in the conversation
  4. Define measurable outcomes
  5. Outline a roadmap with a schedule
  6. Integrate successful changes
65
Q

• Analytical tactics like a SWOT analysis and goal-setting frameworks like SMART can be extremely useful at this stage, as you’ll need to be specific about what you want to achieve and honest about what is achievable.

A

Establish clear goals

66
Q

• With a definite goal in mind, the only way to know your progress is to know where you’re starting from. It could also help you recalibrate your goals.

A

Set a baseline

67
Q

• Too often, the most important people are left out of conversations about goals and objectives. The more levels of complexity and oversight, the more important it is to hear from everyone—yet the more likely it is that some will be excluded.

A

Involve players at all levels in the conversation

68
Q

Using KPIs (key performance indicators) to apply a level of objectivity to your action steps allows you to measure their progress and success over time and either adapt as you go along or stay the course.

A

Define measurable outcomes

69
Q

It include all involved team members and departments and clear timelines for reaching milestones. Within the objectives, set action items with deadlines to stay on track, along with corresponding progress markers.

A

Outline a roadmap with a schedule

70
Q

Take note of successful changes and integrate it into the business processes for sustainable improvement. Then create new objectives, so you can continue the cycle.

A

Integrate successful changes

71
Q

a strategy designed for a firm or a division of a firm that competes within a single business.

A

Business Level Strategy

72
Q

basic types of business level strategies based on breadth of target
market (industrywide versus narrow market segment) and type of competitive advantage (low cost versus uniqueness).

A

Generic Strategies

73
Q

requires a tight set of interrelated tactics

A

Overall cost leadership

74
Q

a firm’s achievement of similarity, or being “on par,” with competitors with respect to low cost, differentiation, or other strategic product characteristic.

A

Competitive parity

75
Q

on the basis of differentiation permits a
cost leader to translate cost advantages directly into higher profits
than competitors. Thus, the cost leader earns above-average returns.

A

Competitive parity

76
Q

a firm’s generic strategy based on creating differences in the firm’s product or service offering by creating something that is perceived industrywide as unique and valued by customers

A

Differentiation Strategy

77
Q

is based on the choice of a narrow competitive scope within an industry.

A

focus strategy

78
Q

a firm following this strategy selects a segment or group of segments
and tailors its strategy to serve them.

A

Focus strategy

79
Q

a firm strives to create a cost advantage in its target segment. - exploits differences in cost behavior in some segments

A

Cost focus

80
Q

a firm seeks to differentiate in its target market. Both variants of the focus strategy rely on providing better service than broad-based competitors that are trying to serve the focuser’s target segment.

A

Differentiation focus

81
Q

exploits the special needs of buyers in other segments.

A

Differentiation focus

82
Q

exploits differences in cost behavior in some segments

A

Cost focus

83
Q
  • firms’ integrations of various strategies to provide multiple types of
    value to customers.
A

Combination Strategies

84
Q
  • This strategy enables a firm to provide two types of value to customers: differentiated attributes (e.g., high quality, brand identification,
    reputation) and lower prices (because of the firm’s lower costs in value-creating
    activities).
A

Combination strategies

85
Q

The goal is thus to provide unique value to customers in an efficient manner.

A

Combination strategies

86
Q
  • refers to the stages of introduction, growth, maturity, and
    decline that occur over the life of an industry.
A

Industry Life Cycle

87
Q

the first stage of the industry life cycle, characterized by (1) new products that
are not known to customers, (2) poorly defined market segments, (3) unspecified product features, (4) low sales growth, (5) rapid technological change, (6) operating losses, and (7) a need for financial support.

A

Introduction stage

88
Q

In considering the
industry life cycle, it is useful to think in terms of broad product lines
such as personal computers, photocopiers, or long-distance telephone service

A
89
Q

the first stage of the industry life cycle, characterized by (1) new products that
are not known to customers, (2) poorly defined market segments, (3) unspecified product features, (4) low sales growth, (5) rapid technological change, (6) operating losses, and (7) a need for financial support.

A

Introduction stage

90
Q
  • the second stage of the product life cycle, characterized by (1) strong
    increases in sales; (2) growing competition; (3) developing brand
    recognition; and (4) a need for financing complementary value chain activities such as marketing, sales, customer service, and research and development.
A

Growth stage

91
Q
  • the third stage of the product life cycle, characterized by (1) slowing demand growth, (2) saturated markets, (3) direct
    competition, (4) price competition, and (5) strategic emphasis on efficient operations
A

Maturity stage

92
Q

break in the industry tendency to continuously augment products,
characteristic of the product life cycle, by offering products with fewer product
attributes and lower prices.

A

Reverse positioning

93
Q
  • a break in the industry tendency to incrementally improve products along
    specific dimensions, characteristic of the product life cycle, by offering products that are still in the industry but are perceived by customers as being different.
A

Breakaway positioning

94
Q
  • the fourth stage of the product life cycle, characterized by (1) falling sales
    and profits, (2) increasing price competition, and (3) industry consolidation.
A

Decline stage

95
Q
  • refers to keeping a product going without significantly reducing marketing support, technological development, or other investments, in the hope that
    competitors will eventually exit the market.
A

Maintaining

96
Q
  • a strategy of wringing as much profit as possible out of a business in the short
    to medium term by reducing costs.
A

harvesting strategy

97
Q

involves dropping the product from a firm’s portfolio. Since a residual core of
consumers exist, eliminating it should be carefully considered.

A

Exiting the market

98
Q
  • involves one firm acquiring at a reasonable price the best of the surviving
    firms in an industry.
  • This enables firms to enhance market power and acquire valuable assets.
A

Consolidation

99
Q
  • involves reversing performance decline and reinvigorating growth toward profitability. A
    need for turnaround may occur at any stage in the life cycle but is more likely to occur during maturity or decline.
A

Turnaround strategy

100
Q
  • Firms in turnaround situations try to aggressively cut administrative expenses and
    inventories and speed up collection of receivables. Costs also can be reduced by outsourcing production of various inputs for which market prices may be cheaper than in-house production costs.
A

Asset and cost surgery

101
Q
  • discontinue such product lines and focus all resources on a few core profitable areas.
A

Selective product and market pruning

102
Q
  • Improving business processes by reengineering them, benchmarking specific activities against industry leaders, encouraging employee input to identify excess costs, increasing capacity utilization, and improving employee productivity lead to a significant overall gai
A

Piecemeal productivity improvements

MS2 (1 decks)

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