Strategy Management Flashcards
what is strategy
large scale action plan that sets the direction for an organization
what is strategic management
process that involve managers from all parts of organization in the formulation and implementation of strategies and strategic goals
why strategic management is important
- provide direction and momentum
- encourage new ideas
- develop a sutainable competitive advantage
what are the four areas that organization must stay ahead
- being responsive to customer
- innovation
- quality
- efficiency
how do you use technology to gain a sustainable competitive advantage for construction industry
- mobile technology
- drones
- BIM building information monitoring
- virtual reality and wearables
- 3D printing
- artificial intelligence
what is an effective strategy
strategic positioning
- attempts to achieve sustainable competitive advantage by preserving what is distinctive about the company
- “performing different activities from rivals,or performing similare activities in different ways”
what are the three principles of effective strategy
- strategy is the creation of a unique and valuable position 2.strategy requires straight offs in competing 3. strategy involve creating a fit among activities
what are the strategic management process
establish the mission and Division establish the grand strategy with environmental scanning formula that strategic plans carry out the strategic plans maintain strategic control revised actions if necessary based on feedback
what are the three common grand strategies
growth strategy
stability
defensive
what is growth strategy
involve expansion
what is stability
involve little or no significant change
what are the two lesson of successful manager
- In era of management fads, strategic planning is still tops
- Managers must be willing to make large,painful decisions to suddenly alter strategy
what is business plan
a document that outline a proposed firm’s goals , the strategy for achieving them and the standards in measuring success
what can strategic learning help
can help people focus on the most critical problems, choices,and opportunities
what can a poor plan send an organization to
to wrong direction
what do bad planning usually results from
faulty assumptions about future,poor assessment of an organisation’s capabilities
ineffective group dynamics,and information overload
what is strategy innovation
h
what is strategic positioning
attempt to achieve sustainable competitive advantage by preserving what is distinctive about a company
strategic position emerges from three sources what are they
- few needs , many customers ,eg. provides only lubricants, but for all
- Broad needs, few customer
eg. channel luxury brand ,for wealthy people only - broad needs,many customer
eg. rice
the strategic management workforce small as well as large firms
yes, if the company is in a very competitive industry
what are the characteristics of a good mission statement
states the organization’s purpose and reason of being
what is defensive strategy
- involves reduction of the organization’s effort
- retrenchment
what is strategy formulation
process of choosing different strategies and alterig them to best fit the organzation’s need
what is strategy implementation
putting strategic plan into effect
what is strategic control
monitoring the execution of strategies, and making adjustments if necessary
what do we need to establish grand strategy
- competitive intelligence
- SWOT analysis
- forecasting
what is competitive intelligence
what is environmental scanning
careful monitoring of organization’s internal and external environments to detect early signs of opportunities or threats that may influence the firms plans
what is the meaning of
s
what is trend analysis
hypothetical extension of a past series of events into the future
what is contingency analysis
creation of hypothetical alternatives but equally likely future conditions
what are some of the technique to formulate strategy
- Porter’s 5 Competitive Forces
- Porter’s 4 Competitive Stategies
- Single product vs Diversification
- BCG Matrix
what are Porter’s five competitive forces
- threat of new entrants
- Bargaining power of supplies
- Bargaining power of buyers
- Threat of substitute products or services
- Rivalry among competitors
what are the 4 Porter’s competitive strategy
- Cost leadership strategy
- Differentiation strategy
- Cost focus strategy
- Focused differetiation
what is the characters of good vision statement
stating what it wants to become
positive and inspiring
what do we need to keep a strategic plan on track
engage people
keep it simple
stay focused
keep moving
where can the sources of competitive intelligence found
public prints and advertising, investor information, informal resources
SWOT analysis is also called
situational analysis
the SWOT analysis is divided into how many parts? and what are they
4 parts, strength weaknesses opportunity threats
what is organizational strengths
Skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission
what is organizational weaknesses
Drawbacks that hinder an organization in executing strategies in pursuit of its mission
what is organizational opportunity
An environmental factors that the organization May exploit for competitive advantage
what is organizational threats
Environmental factors that hinder and organization’s achieving a competitive advantage
what are the 2 types of forecasting
- Trend analysis
- contingency planning
an organisation should do what to examines these five competitive forces
An organization should do a good SWOT analysis that examines this five competitive forces
what is the benefit and disadvantages of single-product strategy
Benefit- Focus
The risk- vulnerability
what is single product strategy
A company makes and sells only one product within its Market
what is diversification
operating several businesses in order to spread the risk
what are the advantages of related diversification
Reduce risk because more than one product
Management efficiency Administration spread over several businesses
Synergy the sum is greater than the parts
what is BCG matrix
Evaluating strategic business units on the basis of
- Their business growth rate and
- their share of the market
what is execution
Not simply tactics it is a central part of any company strategies. Using questioning analysis and follow-through to mesh strategy with reality, align people with goals, an issue results promised
what are the three core processes of business
People, strategy, and operations
what are the two kinds of diversification
Unrelated diversification
Related diversification
what is the meaning of synergy
The economic value of separate, related business under one ownership and management is greater together than the business that are with separately
effective execution requires managers
Effective execution requires managers to build a foundation for execution within three core processes found in any business : people strategy an operation
what are the seven essential types of leaders behaviors needed to fuel engine of execution
- Know your people and your business: “engage intensely with your employees”
- insist on realism: “ don’t let others avoid reality”
- set clear priority: “focus on a few rather than many goals”
- follow through: “establish accountability and check on results”
- reward the doers: “show top performance that they matter”
- expand people’s capabilities : “develop the talent”
- know yourself : “do the hard work or understanding Who You Are”
what are the seven essential types of leaders behaviors needed to fuel engine of execution
d
what does execution based on?
based on leadership
