Unit 3 - Module 2

Question 1

What is Market Position?

Answer 1

The customer’s perception of a brand or product in relation to its competition

Question 2

Define Differentiation

Answer 2

Refers to a firm’s ability to create a good that is difficult to replicate, thereby fulfilling niche needs.
Name brand, luxury branding. (Coach)

Question 3

Define Strategic Obejectives & Analysis

Answer 3

An evaluation called a SWOT analysis is commonly used to perform both a thorough internal investigation of an organizatione (S) strengths and (W)weaknesses and external opportunities (O) or threats (T).

*taking the test to see where the company stands

Question 4

What is Operational Strategy?

Answer 4

Operational strategies are defined as the methods companies use to reach their objectives

Question 5

Define Strategic Evaluation and Control

Answer 5

Because internal and external conditions are always changing, this stage is crucial. Performance measurements will help determine if critical milestones are being met.

Question 6

What are the 5 steps for organizational goal setting?

Answer 6

1. Develop mission statement
2. Create strategic goals
3. Identify objectives
4. Define performance measures
5. Establish deadline

Question 7

Define Allocation of Resources

Answer 7

Utilizing both money and people in a way that best serves the organization.

Question 8

Name the three levels of planning and the level of management that they relate to.

Answer 8

Strategic Planning - Senior level / Executives
Operational Strategy - Lower Level Managers
Tactical Planning - Mid-Level Managers

Question 9

Define Market Segmentation

Answer 9

Strategy that is narrow in scope (both cost leadership and differentiation are relatively broad in scope) and is a cross between the two strategies. Segmentation targets finding specific segments of the market, which are not otherwise tapped by larger firms.

Question 10

What are SMART goals?

Answer 10

Goals that are:
Specific
Measurable
Attainable
Relevant to the mission
Time-bound

Question 11

What are Tactical Plans?

Answer 11

Involves specific units of the organization, short term (1 year or less) plans to determine:
What is to be done?
Who is going to do it?
How is going to be done?

Question 12

What are Strategic goals?

Answer 12

Strategic goals involve the entire organization and answer:
What will we do?
How will we do it?
How will we know we acheived it?

Long term goal spanning 3- 5 years, requires a large  investment of resources and commitment. 
facility location
technology usage
labor and equipment organization
capacity to meet customer demands

Question 13

What is Portfolio Management?

Answer 13

How an organization or person handles their range of investments or businesses.

Question 14

What is the difference between Operational Strategy and Corporate Strategy?

Answer 14

Operational Strategies- methods companies use to reach their ‘objectives’.

Corporate Strategy is concentrated on driving the company ‘mission’

Question 15

Define Tactics

Answer 15

The means used to gain an objective associated with a strategy, requires action.

Question 16

What does PESTEL stand for?

Answer 16

Political
Economic 
Social
Technological
Environmental
Legal Factors

Question 17

Define Strategic Formulation

Answer 17

Goals and objectives- based on the information obtained from the PESTLE and SWOT analyses

*Applying the results from SWOT and PESTEL

Question 18

What are four essential components of ‘corporate strategy’?

Answer 18

Allocation of resources
Organizational design
Portfolio management
Strategic trade-offs

Question 19

What does SWOT stand for?

Answer 19

Strengths
Weaknesses
Opportunities
Threats

Question 20

What are the 4 steps of strategic management process?

Answer 20

1. Strategic objectives and analysis
2. Strategic formulation
3. Strategic implementation
4. Strategic evaluation and control

Question 21

Define Objectives.

Answer 21

A measurable step to attain a goal. Quantative, how much? By when?

Question 22

Name the 3 Competitive Strategies.

Answer 22

Cost leadership
Differentiation
Market segmentation

Question 23

Define Organizational Design

Answer 23

Whether an organization is set up as a centralized system of administration or a decentralized network of control and decision-making authority.

Question 24

Define Strategic Implementation

Answer 24

Go-Time
The stage is when the planning stops, and the action begins.

*The best plans will not make up for poor implementation.

Question 25

Define Strategy

Answer 25

Plan of action, how an organization plans to meet the goals that support its mission.

Question 26

Define Cost Leadership

Answer 26

Refers to a firm’s ability to create economies of scale through extremely efficient operations that produce a large volume.
Wal-mart / Volume = cheaper.

Question 27

What is the difference between strategic goals and tactical plans?

Answer 27

Strategic goals refer to long term strategy (3-5 years) vs. Tactical which is short term (1 year)

Question 28

What are Strategic trade-offs?

Answer 28

The risks and benefits of all decisions.

Question 29

Define Strategy.

Answer 29

An approach to meeting a goal, general in nature.

Question 30

Define Goal.

Answer 30

Broad primary outcome, qualatative in nature