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strategic planning study > Quiz 2 > Flashcards

Quiz 2 Flashcards

1
Q

What is business level strategy?

A

The way a firm thinks how to compete.

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2
Q

What can I do to perform competitors?

A

Think and strategize before do anything

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3
Q

Two business levels strategies?

A

1- Always have competitive edge (competitive advantages)

2- Be sustainable (create for longevity)

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4
Q

What are the three generic strategies?

A

1- Cost leadership (low cost option)
2- differentiation (unique options)
3-Focus (narrow down)

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5
Q

What is cost leadership (first of three generic strategies)?

A

(low cost option) :
be efficient ( follow effective policy guidelines)
Past experience ( learn from mistakes)
Control your overheads ( follow ,mission, vision, goal, reiterate)
Standardized procedures( maintain uniformity)

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6
Q

Downsize of cost leadership? ( 3 generic strategies)

A

Dowside:
focus on 1 area,
market fluctuations,
copy and paste (imitated)

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7
Q

What is the differentiation (second of three generic strategies)?

A 
( unique options):
brand, 
costumer service, 
technology, 
quality
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8
Q

Downside of differentiation (3 generic strategies)

A 
Downside:
Unique (limited options):
above expectations (higher benchmark) 
price (pay premium) 
perspective (different)
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9
Q

What is focus (three of three generic strategies)?

A

(narrow down):
cost (cost advantage)
differentiation (be different)

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10
Q

Downside of focus (3 generic strategies)

A

Downside: competition(rival competitor product erosion)
Imitation (dot.com businesses)
Limitation ( uniqueness)

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11
Q

What are the combination strategies?

A

Mass customization (make unique products at low cost)

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12
Q

Combination strategies downside?

A

Downside:

Miscalculation (incorrect assessment, bias)

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13
Q

What is the corporate level strategy?

A

Focuses on the decision a corporation makes to transform itself

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14
Q

What is diversification?

A

To diversify (varied)
mergers (join) and acquisition (develop, buy)
Strategic alliance and joint venture
Internal development

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15
Q

Why firms diversify?

A

Variety of reasons:
Fresh personnel,
exploit an opportunity,
create a synergy.

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16
Q

Two types of corporate level strategy?

A

1 Related diversification (to build their portfolio)

2. Unrelated diversification: (believe in what you do and stay focused)

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17
Q

Why vertically integrate?

A

To reduce dependence on suppliers or its channels of distribution (weight risks before)

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18
Q

How to create value within the business unit?

A

parenting (positive contributions of corporate office),
restructuring (means of corporate office can add substantial value),
corporate entrepreneurship green field/ organic growth.

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19
Q

what are White knight?

A

Firms invited by target firms management to step in during a hostile bid

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20
Q

What are golden parachutes?

A

prearranged employment contract between companies and managers specifying in hostile takeover, paid a significant severance package

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21
Q

What needs to be integrated? Strategies

A

Business level strategy and Corporate level strategy

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22
Q

Test business and corporate level strategy for?

A

consistency,
consonance (compatible)
advantage (competitive)
feasible (convenient)

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23
Q

Industry life cycle stages?

A 
Stages:
Introduction, 
growth, 
maturity, 
decline.
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24
Q

Importance of industry cycle?

A

Importance:
awareness firms strengths and weakness,
balance in each area,
cannot predict

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25
Q

Introduction strategies [industry life cycle]?

A

Introduction (strategies):
focus on research and development,
marketing,
patience pays.

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26
Q

Growth strategies [industry life cycle]?

A

Growth:
differentiated products,
finance (required capital),
sales (innovative).

27
Q

Maturity strategies [industry life cycle])?

A

Maturity:
Efficiency (more with less),
process review (keep cost low),
simplify (user friendly)

28
Q

Decline strategies [industry life cycle])?

A

Maintaining,
harvesting,
exiting,
consolidating.

29
Q

What is Maintaining decline strategy?

A

keeping product going,
no reduction marketing,
tech development,
or investment hoping competitors will exit market.

30
Q

What is Harvesting decline strategy?

A

Harvesting:
taking as much possible profit from business
and make minimal investments.

31
Q

What is Exiting decline strategy?

A

Exiting: dropping product from portfolio

32
Q

What is Consolidation decline strategy?

A

Consolidation: acquiring competitor in a declining industry

33
Q

Competition can alter strategy, thru?

A

imitation: replicate value creating elements over time.

34
Q

why companies compete?

A

improve market position,
capitalize on the moment,
reputation.

35
Q

2 factors to asses competitors?

A

2 factors
Market commonality,
resource similarity

36
Q

Types of competitive actions?

A

strategic actions,

tactical actions.

37
Q

Choosing not to react to competition?

A

Forbearance,

co-opetition (competition and co-operation)

38
Q

Forbearance ?

A

refraining from reacting at all as well as holding back from initiating an attack

39
Q

Co-opetition?

A

combination of competition and co-operation

40
Q

Effective Strategic Control:

A
  • Alignment (goals and policies)
  • Behavior (say what you do, and do what you say)
  • Consistency (develop a pattern)
41
Q

We accomplish control by getting feedback

A

a. Financial and operating controls (set targets, ROE,ROA, ROI)
b. Informational and behavioral controls (monitor, test and review-address culture, rewards and set boundaries)
c. Corporate governance (control on a broader perspective, ensure management fulfil their purpose, consistency)

42
Q

Corporate Governance?

How are they?

A

Shareholders (vested interest)
Management (representatives)
Board of Directors (elected officials)

43
Q

What is a Corporation?

A

A mechanism created to allow different parties to contribute capital, expertise, and labor for the maximum benefit of each party
Or a legal entity that is separate and distinct from its owners

44
Q

What is a Corporation?

A

A mechanism created to allow different parties to contribute capital, expertise, and labor for the maximum benefit of each party
Or a legal entity that is separate and distinct from its owners

45
Q

Why oversight is needed ?

A

Compensation
Strategy (authority)
Financials (monitor)
Crisis management

46
Q

CEO Duality?

A

refers to the dual leadership structure where the CEO acts simultaneously as the chair of the Board of Directors

47
Q

Internal control mechanism ?

A

The people appointed to nurture and grow the corporation

48
Q

what are external Governance Control measures?

A

Audits (accounting statements are required to be audited and certified accurate by external auditors)
Banks (to monitor and review)
Regulatory bodies (e.g. The Law Society of Manitoba, The Opticians of Manitoba
Media (public awareness)

49
Q

Corporate Governance: (from an International Perspective)

A

Family ownership
Ownership pattern (local partner)
Governmental conflict (local regulatory body impeding strategic control)

50
Q

The importance of strategic leadership?

A

Strategic Management requires leadership skills knowing the vision and objective for the organization

51
Q

Two types of Leaders?

A
  • Managerial leaders; (preserve order, apply expertise, comply with rules, able to predict and be efficient)
  • Strategic leaders; influence others, enhance long term goal, have a strategy for the future..
52
Q

Leaders perform three critical and interdependent activities?

A
  1. Set the direction: (Scan your environment Learn from the market, be Proactive (don’t wait for something to happen)
  2. Design the organization: What are you good at? Focus on what you can do Be consistent )
  3. Nurture an Excellent and Ethical Culture: Consistent, observable patterns of behavior Incentives (how do you give back to the community) Accept personal responsibility to develop and strengthen ethical behaviour
53
Q

3 elements of Effective Leadership:

A
  1. Integrative thinking (Combine opposing ideas into a creative solution )
  2. Overcoming barriers to change (Systemic barriers, Behavioral barrier, Political barriers, Personal time constraints)
  3. Effective use of power(overcome barriers to change, the ability to influence other people’s behaviour, to help overcome resistance and opposition)
54
Q

Emotional Intelligence (EI):

A

It is one of the most consistent traits in successful managers

55
Q

Five components of EI?

A
  1. Self-awareness,
  2. Self-regulation,
  3. Motivation,
  4. Empathy
  5. social skill
56
Q

How to you instil Ethics and Social Responsibility in an Organization?

A

Be a role model
set code of conduct… recognize corporate values… give rewards (show that you care and value your team)
set policies and procedures (strict guidelines)

57
Q

Importance of Innovation?

A

help corporations grow

Enhance the competitive position

58
Q

Managers need Creative Intelligence to assist with firms innovation?

A

Creative intelligence promotes skills in associating the ability to see patterns of change

59
Q

What do innovators do?

A 
They; 
Associate, 
question, 
observe, 
experiment
network
60
Q

Corporate Entrepreneurship (CE) two primary aims?

A
  1. New venture opportunities

2. Strategic renewal

61
Q

Entrepreneurial Orientation

A

refers to the strategy making practices (the methods, practices, and decision-making styles that strategic managers use to act entrepreneurially)

62
Q

5 dimensions of EO:

A
  1. Autonomy (willingness to act independently)
  2. Innovativeness (a firm’s attitude toward innovations and willingness to innovate)
  3. Proactiveness (a firm’s effort to seize new opportunities) 4.Competitive aggressiveness (a firm’s efforts to outperform its industry rivals)
  4. Risk Taking ( a firm’s willingness to seize a venture opportunity)
63
Q

4 qualities that makes an opportunity viable?

A
  1. Attractive (it must be attractive and there must be demand)
  2. Achievable (has to be practical and possible)
  3. Durable (has to sustain long enough to be successful, the opportunity has to be worthwhile) Value creating (the opportunity must be profitable, return on investment)
  4. Value creating (the opportunity must be profitable, return on investment)

strategic planning study (1 decks)

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