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Business Test 1 > Unit 11 - Business Strategy > Flashcards

Unit 11 - Business Strategy Flashcards

1
Q

Management Process

A

Planning -> Organizing -> Leading -> Controlling ->

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2
Q

Planning

A
  • Defining goals
  • Establishing strategy
  • Develop plans (strategic, functional, tactical)
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3
Q

Organizing

A
  • What tasks to do
  • Who will do them
  • How to group tasks
  • Who reports to whom
  • Where decisions are to be made
  • Also recruiting, selecting, training, and performance evaluation
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4
Q

Leading

A
  • Motivating employees
  • Directing activities of others
  • Selecting effective communication channels
  • Resolving conflicts
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5
Q

Controlling

A
  • Monitoring performance
  • Comparing it with goals
  • Correcting significant deviations
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6
Q

Planning is…

A

the primary role of management

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7
Q

Internal Environment

A
  • Organizational structure
  • Vision
  • Mission and Values
  • Culture
  • People and workforce diversity
  • Technology
  • Physical Assets
  • Intellectual Property
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8
Q

External Environment

A

Macro forces like:

  • Economic Cycles
  • Technological Changes
  • Social and demographic changes
  • Environmental factors specific to the firm’s industry and markets
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9
Q

Planning must consider…

A

the external context of the firm, and is aligned with the internal resources and capabilities of the firm.

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10
Q

Why planning is important:

A
  • Gives direction to managers and employees
  • Reduces uncertainty
  • Establishes goals and standards that facilitate control
  • Involves and engages all levels of the organization
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11
Q

Residual Uncertainty

A
  • Truly unknowable

- Important in assessing risk and will influence the methods used to formulate strategy

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12
Q

Control requires…

A

a collection of performance data

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13
Q

How to collect performance data:

A
  • Fully automated processes
  • Operational Monitoring
  • Observing business activities
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14
Q

Managers and Employees who participate in business planning with tend to have…

A

higher job satisfaction

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15
Q

Business planning correlates with…

A

stronger financial performance

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16
Q

Quality business plans:

A
  • Function of management participation
  • Commitment to planning process
  • Knowledge, skills, and abilities of planning teams
  • Planning processes and methods that were followed
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17
Q

Types of Organizational Structures

A
  • Hierarchical (Tall)

- Flat (Networked)

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18
Q

Hierarchical Structure

A
  • Many layers of middle management - often inefficient bureaucracies
  • Senior Managers make most operational decisions, authority gained from several layers up before taking action
  • Information flows top down
  • Works well in stable environment
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19
Q

Flat Structure

A
  • Front line employees make range of decisions
  • Information flows top down and bottom up
  • Few levels of middle management
  • Decentralized decision-making and planning critical in dynamic environments
20
Q

The more hierarchical an organization is…

A

the more mechanistic or bureaucratic it becomes

21
Q

Levels of management

A

1) Senior/Top Managers - Strategic Planning
2) Middle Manages - Functional Planning
3) First-line Managers - Tactical/Operational Planning
4) Team Leaders

22
Q

Senior Managers plan for…

A

longer term and general goals

23
Q

First-Line Managers plan for…

A

narrow, short and specific goals at lower levels

24
Q

Tactical Plans also referred to as…

A

Operating Plans, work plans, and schedules

25
Q

Most common types of strategic plans:

A
  • Corporate
  • Business Unit
  • Functional plans
26
Q

Most common tactical plans:

A
  • Budgets

- Schedules

27
Q

Strategic Plans:

A
  • Broadly impact the firm
  • Determines New Markets to enter or Existing Markets to leave.
  • Identifies initiative to create and sustain competitive advantage
  • Driven by management’s vision, mission and values
  • Covers extended planning horizons
28
Q

Key Issues addressed by strategic planning at Corporate Level:

A
  • Determining markets
  • How financial human capital will be allocated
  • What services will be shared across the organizational units
29
Q

Strategic planning at the business unit of functional levels deals with:

A
  • Positioning the business unit’s products and services relative to competing firms
  • Objective: Leverage resources of organization to achieve competitive advantages
30
Q

Strategic Plans driven by:

A
  • Organization’s overal mission
  • Management’s vision
  • Future goals and objectives of the organization
31
Q

Goals developed at the strategic planning level tend to be:

A
  • More directional in nature rather than specific.

- Made more specific as planning cascades down the organization.

32
Q

Strategic Plans cover…

A

extended periods of time

33
Q

Regardless of how volatile the industry is, most organizations will…

A
  • set out very long term goals and objectives, 10 years or more out into the future.
  • These goals do not drive the more immediate development strategic plans, but instead become long-term targets that guide several generations of strategic planning
34
Q

SBUs

A

Business Unit Levels of the firm

35
Q

2 Common Organizational Structures

A

1) Functional

2) Divisional

36
Q

Functional Structure

A

1) CEO/President
2) SVP Marketing, Manufacturing, Finance, Logistics, Administration
- Single SBU- Business with 1 or more lines of business

37
Q

Divisional Structure

A

1) CEO/President
2) EVP Infant Apparel, EVP Infant Toys, CTO Technology, CTO Finance, SVP HR
3) Marketing and Sales
4) Production
5) Design, Research and Development
- Infant Apparel and Infant Toys are 2 SBUs that Share Common Services: Technology, Finance and HR

38
Q

The structure used by any specific organization will depend upon:

A

1) Management Objectives

2) Business Complexity

39
Q

SBUs will usually have:

A
  • Products
  • Customers
  • Competitors
  • Supply Chains
  • Logistical Operations
  • Strategic Business Partners
40
Q

SBU Strategy…

A

is directed towards creating and sustaining competitive advantage

41
Q

A divisional structure allows senior managers to…

A
  • delegate profit responsibilities down to the divisional leadership
  • fixes accountability at a level below the CEO
42
Q

Organizations with a single line of business may be…

A

organized divisionally by geography or by customer, but are usually organized functionally below the CEO level

43
Q

Functional Structures tend to be…

A

More efficient than divisional structures

44
Q

As you go down the SBU organization, the operating areas will be…

A

departmentalized for management, coordination, and control purposes

45
Q

An SBU that uses functional departmentalization may be comprised of:

A
  • Marketing
  • Manufacturing
  • Operations
  • Technology
  • Administration
  • Supply Chain Management
    among other functions
46
Q

Functional departmentalization will vary based on:

A
  • the industry the business unit competes in

- the firm’s propensity for outsourcing business activity

Business Test 1 (25 decks)

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