BUSN 1210 > Ch 10 > Flashcards

Ch 10 Flashcards

(55 cards)

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1
Q

Strategic management

A

the formulation n implementation of initiatives by top management - consideration in resource n environmental opportunities
set of managerial decisions & actions that determine long-run performance of organization

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2
Q

strategies

A

plans on how organization will do and whats its in business to do, how it compete successfully and how attract and satisfy customers to achieve goal

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3
Q

business model

A

how firm creates value for customers
strategic design for how company intends to profit from strategies, work process, and activities
focus on 3 things 1. customers will value what company is providing 2. whether company has or can acquire resources needed to execute 3. whether company can make money

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4
Q

why is strategic management important

A

results in higher organizational performance

requires managers to examine and adapt to business environment changes (all org face changing situations)

coordinates diverse units help focus on organizational goals

involved in managerial decision-making process

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5
Q

Process for strategic management

A

identify missions, goals, strategies

internal analysis of strengths and weaknesses

external analysis of opportunities and threats

formulate strategies - implement strategies - evaluate results

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6
Q

mission, and goals

A

mission - firms reason for being (products n services)

goals - foundation for further planning (measurable performance targets)

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7
Q

why involve employees from all levels of org

A

brings perspective top management does not hold, involvement enhance employee engagement in org

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8
Q

components of mission statement

A

who are firms customers?
market - where firm compete geographically
concern for survival, growth, and profitability - is it committed to growth and financial stability
philosophy - firms basic beliefs, values, and ethical priorities.

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9
Q

more components of mission statement

A

concern for public image - how responsive to societal and environmental concerns
product/services - major products n services
technology- is it current
self-concept- major competitive advantage and core competencies
concern for employees- r employees valuable asset

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10
Q

core competencies

A

resource n core competencies determine org competitive weapons

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11
Q

step 2 conducting internal analysis in strategic management

A

assessing resources, capabilities, activities, n culture

strength- create value 4 customer n strengthen competitive position
weaknesses- things done poorly that can place firm at competitive disadvantage

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12
Q

step 2 external analysis

A

environmental scanning of specific n general environments = identify opportunities n threats

opportunities = positive trends in external environment
threats = negative trends

examines demographic, legal-political, sociocultural, tech, n global components to see trends n changes = potential labour supply, changing demographics, what comp is doing

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13
Q

SWOT (step 2 n 3)

A

strengths, weaknesses, opportunities, n threats

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14
Q

steps done in planning stage?

A

formulating strategies, identifying current mission, SWOT analysis

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15
Q

step 3 formulate strategies

A

develop n evaluate strategic alternatives
select strategy that provides advantage over competitors
match strengths to environmental opportunities
correct weaknesses n guard against threats
coporate, competitive, functional

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16
Q

resources are? capabilities?

A

resources = assets, financial, physical, human, to develop manufacture n deliver products to customers
capabilities = skills n abilities in work activities needed in business

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17
Q

step 4 implement strategies

A

needs competence, commitment, n coordination
implementation - fit organizational structure n activities to environment
environment dictates strategy = effective strategy implmentation needs structure to match requirements

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18
Q

competence, commitment, coordination

A

competence = have knowledge, skills, n abilities to execute tasks that support strategy
commitment = determind todo what needed to execute strategy
coordination = able n willing to work together to implment strategy

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19
Q

leadership, human resources, info n control systems, structure

A

leadership = persuasion, motivate, shape culture/values
HR = recruit/select, manage promotions/transfers/trainings, layoffs/recalls
info = revise pay n reward systems, change budget allocations, implement info systems, apply rules/procedures
structure = design org charts, create teams, determined centralization/decentralization, arrange facilities task design

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20
Q

step 5 evaluate results

A

how efeective its been, need any adjustment?

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21
Q

coporate level strategies & corporate strategy

A

top managments overall plan for the entire org n strategic business units

corporate strategy = evaluates what business an org is in should be in or wants to be in and what it wants with those businesses, mission n goals, roles each business unit will play

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22
Q

corporate level, business level, functional level

A

corporate = multibusiness corp
business = consumer products unit, digital media n finance service unit
functional= research n development, manufacturing, marketing, human resources, finance

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23
Q

types of corporate strategies 4 of them

Study These Flashcards
A

growth = expansion in products n market
stability = maintenance of status quo
retrenchment= address weaknesses that lead performance decline
coporate portfolio analysis= involves number of business, guides resource allocation

24
Q

functional strategies

Study These Flashcards
A

used by org functional departments to support competitive strategy

25
growth strategy
seek to increase organizations business by expansion to new product n market
26
types of growth strategy
concentration, vertical integration, horizontal integration, diversification
27
concentration growth strategy
focus on primary line of business n increasing number of products offered or markets served
28
vertical integration
backward = gain control of inputs being self supplier forward = gain control of output through distribution n provide customer service activities (eliminate intermediaries)
29
horizontal integration
combine operation with competitor in same industry to increase competitive strengths n lower competition among industry rivals
30
diversification
related = expend by merge with firms in different but related industries that are strategic fits unrelated = grow by merging with firms in unrelated industries where higher financial returns are possible
31
stability strategy
seeks to maintain status quo to deal with uncertainty of dynamic environment when industry is slow or no growth, does not grow but does not fall behind
32
retrenchment strategy
for minor performance problems. helps stabalize operations, revitalize resource n capabilities. reduce activities or operations like cost reductions, layoffs, close underperforming units, close entire product lines or service
33
turnaround strategy
renewal strategy for situations which organizations performance problems are more serious
34
corporate portfolio analysis BCG Matrix
(develop by boston consulting group) considers market share n industry growth rate cash cows = MILK FOR CASH low growth rate, high market share - generate large amount of cash but future growth is limites stars = HEAVILY INVEST high growth rate, high market share - fast growing n hold dominant share of market = contribution to cash flow depends on needs for resources question marks = SELL OFF/TURN INTO STARS high growth rate low market share - a promise of performance but need development for it to happen, attractive market but hold small share dogs = SELL OFF/LIQUIDATE low growth rate, low market share - do not produce or consume much cash, no promise for improved performance
35
the strategic implications of BCG matrix
dogs should be sold off/liquidated cuz low market share w/ low. growth potential managers should milk cash cows n limit new investments, use large amounts of cash to invest in stars n question marks with strong potential to improve market share heavy investments in stars help market grows n help maintain high market share stars eventually develop into cash cows as markets matures n sales growth slows hardest decision is ?marks, after careful analysis some sold off n others strategically nurtured into stars
36
business level strategy
seeks to determine how org should compete in each of its strategic business units (when org has several different businesses, the single business are independant n have own competitive strategies)
37
competitive advantage
what sets org apart distinctive competitive edge that sourced n sustained in core competencies
38
economic moat
maintain competitive advantage over competitors n protect long term profits n market shares (protect profit margins)
39
quality as a competitive advantage
differentiate firm from competitors, create sustainable competitive advantage, represents company's focus on quality management to achieve continuous improvement n meet customers demand for quality
40
design thing in competitive advantage
approaching management problems as designers approach design problems
41
why competitive advantage is good and what helps
big data effective to info exchange generated through social media social media is competitive advantage successful social media should 1. help people inside n outside of org 2. connect n reduce costs/increase revenue possibilities
42
Porters five competitive forces = determine industry attractiveness n profit
1. threat of entrants = ease of difficulty new competitors can enter industry 2. threat of substitutes = switching costs n brand loyalty affect likelihood of customers adopting substitute products n services 3. bargaining power of buyers = degree of buyers have market strength to hold sway n influence competitors in industry 4. bargaining power of supplies = relative number of buyers to suppliers n threats from substitutes n new entrants affect buyer-supplier relationship 5.current rivalry = intensity among rivals increase when industry growth rates slow, product prices decend
43
competitive strategies. cost leadership strategy n differentiation strategy
cost leadership = attain lowest total overall costs relative to competitors differentiation = create unique n distinctive product/service for customers that pay premium
44
differentiation strategies for competitive advantage
quality, innovation, customer service, mass customization
45
innovation differentiation to focus on process development
org looks for ways to improve n enhance work processes, innovates new improved ways for employees todo work = lead to lower costs
46
focus strategy and stuck in the middle
focus = use cost or differentiation advantage to exploit particular market rather than a large market stuck = unable to develop a cost or differentiation advantage
47
what support business level strategy n why problem occur in strategy
marketing, human resources, research n development + finance support business level strategy problem occur when employee or customer dont understand strategy
48
strategic flexibility
ability to recognize major external environmental changes, quickly commit resources, recognize when strategic decision is mistake
49
strategic leadership
ability to anticipate, envision, maintain flexibility, think strategically, n work with others to initiate change that create valuable future for org
50
cost leadership in e business strategy
online activities = bidding, order process, inventory control, recruitment n hiring
51
differentiation n focus in e business strategy
differentiation = internet based knowledge systems = online ordering n customer support focus = chat rooms n discussion boards, targeted web sits
52
customer service strategies
give customers what they want, communicate effectively with them, provide employee with customer service training
53
innovation strategies,possible events n strategic decisions about innovation
possible events = radical breakthroughs in products, application of existing technology to new users strategic decisions = basic research, product development, process innovation
54
first mover
org that brings product innovation to market or uses new process innovation
55
first mover advantages n disadvantages
advantages = rep 4 innovative in industry leader, cost/learning benefits, control over scarce resources n keep competitors from access, opportunity to build customer relationships n loyalty disadvantages = uncertainty of direction tech n market will go, risk of others imitating innovations, financials & strategic risks, high development costs
BUSN 1210
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