Strategic Planning

Question 1

What is a value proposition?

Answer 1

A 30 second “elevator speech” stating the specific value a product or service provides to a target market. Shows why the product or service is superior to competing offers and why the customer should buy it or why a firm should hire you.

Question 2

Corporate level plans

Answer 2

Plans developed for the corporation as a whole take place at the corporate level.

Question 3

Strategic business unit (SBU)

Answer 3

Businesses or product lines within an organization that have their own competitors, customers, and profit centers.

Question 4

Business level plans

Answer 4

Plans developed for each strategic business unit typically have their own mission statement.

Question 5

First-mover strategy

Answer 5

Corporate level strategy theorizing that being the first organization to off a product in the marketplace will be the long-term market leader

Question 6

Second-mover strategy

Answer 6

Corporate level strategy theorizing that closely observing the innovations of the first movers, and improving on them can help an organization gain an advantage in the marketplace.

Question 7

Strategic planning process

Answer 7

A process that helps an organization allocate its resources under different objectives, deliver value, and be competitive in the market driven economy.

Question 8

Situation analysis

Answer 8

An assessment of an organization’s internal and external environments

Question 9

SWOT analysis

Answer 9

An acronym for strengths, weaknesses, opportunities, and threats. Is a tool that frames the situational analysis

Question 10

Mystery shoppers

Answer 10

A person who is paid to shop at a firm’s establishment or one its competitors’ to observe the level of service, cleanliness of the facility, and report their findings to the firm.

Question 11

Green Marketing

Answer 11

Marketing environmentally safe products and services in a way that is good for the environement

Question 12

Mission statement

Answer 12

Defines the purpose of the organization and answers the question of how a company defines its business

Question 13

Objectives

Answer 13

What organizations want to accomplish (the end results) in a given time frame.

Question 14

Strategies

Answer 14

Actions (means) taken to accomplish objectives

Question 15

Marketing Plan

Answer 15

A document that is designed to communicate the marketing strategy for an offering. The purpose is to influence executives, suppliers, distributors, and other important stakeholders of the firm so they will invest money, time, and effort to ensure the plan is a success.

Question 16

Market penetration strategies

Answer 16

Selling more of existing products and services to existing customers

Question 17

Product development strategies

Answer 17

Creating new products of services for existing markets

Question 18

Market development strategies

Answer 18

Selling existing products or services to new customers. Foreign markets often present opportunities for organizations to expand. Exporting, licensing, franchising, joint ventures, and direct investment are methods that companies use to enter international markets.

Question 19

Exports

Answer 19

Sell products to buyers in foreign markets

Question 20

License

Answer 20

Sell the right to use some aspect of the production process, trademark, or patent to individuals in foreign markets

Question 21

Franchising

Answer 21

Granting an independent operator the right to use your company’s business model, techniques, and trademarks for a fee

Question 22

Contract Manufactoring

Answer 22

When companies hire manufacturers to produce their products in another company

Question 23

Joint Ventures

Answer 23

An entity that is created when two parties agree to share their profits, losses, and control with one another in an economic activity they jointly undertake

Question 24

Direct investment

Answer 24

Owning a company or facility overseas

Question 25

Diversification strategies

Answer 25

Offering products that are unrelated to other existing products produced by the organization

Question 26

Portfolio

Answer 26

A group of business units owned by a single firm

Question 27

Portfolio planning approach

Answer 27

Analyzing a firm’s entire collection of businesses relative to one another.

Question 28

Boston Consulting Group (BCG) matrix

Answer 28

A portfolio planning approach that examines strategic business units based on their relative market shares and growth rates Businesses are classified as stars, cash cows, question marks (problem children), or dogs.

Question 29

Star

Answer 29

Business or offering with high growth and a high market share

Question 30

Cash Cows

Answer 30

Business or offering with a large share of a shrinking market

Question 31

Question marks or problem children

Answer 31

Businesses or offerings with a low share of a high-growth market

Question 32

Dogs

Answer 32

Business or offering with low growth and a low market share

Question 33

Harvest

Answer 33

When a firm lowers investment in a product or business

Question 34

Divest

Answer 34

When a firm drops or sells a business or product

Question 35

General Electirc (GE) approach

Answer 35

A portfolio planning approach that examines a business’s strengths and the attractiveness of industries