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118 Cards in this Set
- Front
- Back
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5 Components of the Macroenvironment
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social values, law & politics(compliances), demographics, technology(pace of change), economy
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5 Components of the Competitive Environment
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Substitutes, rivals, suppliers, buyers, new entrants
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Groups and individuals who affect and are affected by the organization and its output...
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Stakeholders
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3 Strategies for Influencing/Managing the Environment
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Cooperative Action, Independent Action, Moving to a Different Environment
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3 Types of Cooperative Action
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contracting, cooptation, coaltion
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What is contracting?
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negotiations of legal agreements
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What is cooptation?
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absorbing elements into organizations to avert/avoid a threat.
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What is coalition?
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two or more organizations acting together with respect to an organization.
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6 Types of Independent Action
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competitive agression
competitive pacification public relations voluntary action legal action political action |
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What is competitive aggression?
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exploiting a distinctive competence
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What is competitive pacification?
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independent action to improve relationship w/ competitors (NON-COMPETE CLAUSE)
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What is public relations?
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establishing/maintaining favorable image in mind of stakeholders
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What is voluntary action?
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commitment to various causes, philanthropies.
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What is legal action?
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?
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What is political action?
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attempts to influence representation, Lobbying.
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4 Types of Moving to a Different Environment
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domain selection, diversification, mergers/acquisitions, divestiture
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What is domain selection?
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entering industry/market where you want (amazon->online)
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What is diversification?
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investing in different types bof businesses/products, commercialization.
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What are mergers/acquistions?
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combining two or more firms into a single enterprise
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What is divestiture?
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sell of your weaknesses.
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4 types of Environmental Attractiveness
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competitors(who's already there), substitutes, capital requirements, brand loyalty.
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What is SWOT?
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a structure method that analyzes internal environment (S, W), and external environment (O, T).
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What are the 4 steps in The Strategic Management Process?
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establish mission(goals/values), SWOT, strategy formulations, strategy implementation.
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Corporate Strategy Alternatives
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concentration, vertical integration, concentric diversification, conglomerate diversification
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define and list advs/disadvs of concentration
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org operates a single business and competes in a single industry
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define and list advs/disadvs of vertical integration
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an org enters 1 or more businesses that are necessary for manufacturing or distribution its own goods (Exxon) adv: all profits are yours...disadv: how can you be good at everything?
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define and list advs/disadvs of concentric diversification
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an org adds new businesses that produce related products or are involved in related markets and activities.(shampoo, conditioner, etc)
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define and list advs/disadvs of conglomerate diversification
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an org adds new unrelated businesses/products or plays in new markets..GE
Disadv: how can you make all that stuff good? |
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5 Strategies for managing the political environment
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lobbying, PACs, strategic retreat, coalition building, stonewalling(obstruction)
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The structuring of both human and physical resources to accomplish organizational objectives
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organizing
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leadership implementing strategy
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ability to influence others in org to embrace new strategy
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organizational implementing strategy
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changing the structure of the organization
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human resources implementing strategy
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people are the key to implementing any decision
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information/control systems implementing strategy
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mgmt needs to create proper blend of info and control system that makes sense of policies, procedures, etc.
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what are the two corporate-level strategies?
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grand and portfolio
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growth strategy (grand)
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is adopted when org wants to create high levels of growth in one or more areas of operations
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integration strategy (grand)
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is adopted when a business needs to stablize supply lines/reduce costs, or need to consolidate competition.
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diversification strategy (grand)
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is adopted if the company wants to move into new products/markets
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retrenchment strategy (grand)
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is adopted if a company wants to downsize
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stability strategy (grand)
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is adopted if a company wants to stay the same
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grand strategy
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overall framework or plan of action developed by corporate
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portfolio strategy
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determines mix of products and business units that will provide maximum competitive advantage
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star
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large share in fast growing market
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cash cow
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large share in slow growing market
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question mark
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low share in fast growing market
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dog
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low share in slow growing market
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business-level strategies? 2
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adaptive, competitive
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prospector strategy (adaptive)
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based on innovation, taking risks, seeking out opportunitites, expansion
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defender strategy (adaptive)
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based on holding current market share or even retrenching
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analyzer strategy (adaptive)
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org attempts to maintain current market share while innovating in some markets.
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reactor strategy (adaptive)
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develop strategy as needed; no strategy
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differentiation strategy (competitive)
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org attempts to set their product apart from competitors'
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cost-leadership strategy (competitive)
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focused on keeping costs as low as possible through efficient operations
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focus strategy (competitive)
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when a firm targets a specific market, region or group of potential customers.
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market strategy(function-level)
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involves satisfying the customer with decision on pricing, promotion, etc.
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production strategy (function-level)
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involves manufacturing goods and providing services
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human resources strategy ((function-level)
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necessary in certain businesses, hotels, restaurants, etc.
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financial strategy (function-level)
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involves decisions on what to do with profits
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research/development strategy (function-level)
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involves invention and development of new technologies, etc.
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views the world as a single market. centralized...
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global model
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several subsidiaries operating as stand-alone business units in multiple countries. decentralized...
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multinational model
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uses existing capabilites to expand into foreign markets
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international model
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specialized facilities permit local responsiveness. complex coordination mechanisms provide global integration...
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transnational model
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exporting (entry mode)
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+quality control. economies of scale
-tarriff barriers, transportation costs |
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licensing and franchising
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outsourcing
+lower cost, lower political risk -loss of control, quality threats |
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joint venture
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legal contract
+local knowledge, shared cost/risk -shared profits, political risk |
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wholly owned subsidiary
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great risk w/ greatest gain
+control, profits -risk, costs |
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natives of the country where an overseas subsidiary is located...
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host nationals
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a parent company national who is sent to work at a foreign subsidiary...
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expatriate
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natives of a country other than home country or host country...
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third-party national
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extent to which a society accepts the fact that power in org's is distributed unequally...
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power distance
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the extent to which people act on their own or part of a group...
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individualism/collectivism
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the extent to which people in a society feel threatened by uncertain and/or ambiguous situations...
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uncertainty avoidance
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dimension that describes relationships versus things
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masculinity/femininity
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function org structure
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groups units by specialty
+specialization -lose customer focus |
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product org structure
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group units by product
+focus on product -expensive/redundant (7 VPs) |
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geographic org structure
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group units by location
+local responsiveness -redundancy, loss of corp. control |
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matrix org structure
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dual reporting
+flexibility -complexity |
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project team org structure
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interdisciplinary specialists assigned to long term projects
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collegial org structure
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usually small
+agile -high credentials |
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extent to wich an organization's communications and procedures are written down and filed...
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formalization
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how much the authority to make decisions is dispersed...
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centralization
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number of different jobs and different departments in an org...
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complexity
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requires a lot of people, hands-on.
ex: picking graps |
labor intensive
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requires only a few people, mass production, equipment does the work
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capital intensive
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no people, 'thing' does itself,
ex: yeast rising |
continuous process
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work unit that is highly formal, communication is top down, and participation is limited
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mechanistic work unit
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work unit is informal, participation is high, and less dependence is put on supervisor
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organic work unit
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true, narrative, formally shared...
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story
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might be dramatized, organizational history...
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legend
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conveys values, but not truth
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myth
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rites/ceremonies...
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passage-orientation, enhancement-awards ceremony, renewal-developmental training, integation-create common bonds
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the propensity to identify business opportunities and to take action to exploit those opportunities...
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entrepeneurship
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traits and characteristics of the entrepeneurial personality...
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property
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a series of steps and procedures, an action approach...
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process
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individuals use a ______ when the attribute outcomes to factors within themselves...
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internal locus of control
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individuals use a ____ when they attribute outcomes to factors outside themselves...
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external locus of control
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believe in your idea, but do not fall in love with it...
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opportunity obsession
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tolerance for ambiguity
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how you can handle ambiguous event
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tolerance for uncertainty
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how you can handle uncertain events
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reinvest first profits, lack of adequate funding...
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funding hazard
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delegation hazard
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not wanting help from others (mgrial help)
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what will happen to the business after you die?
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mortality hazard
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a poor business is what kind of a hazard?
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planning and control
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set processes and mechanisms to encourage reward and creativity...
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administrative intrapeneurship opportunity
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using an idea champion to ensure completion...
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opportunistic intrapeneurship opportunity
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looking outside corporation, acquiring idea/talent...
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acquisitive intrapeneurship opportunity
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if it works, try it...
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imitative intrapeneurship opportunity
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tolerance for ambiguity
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how you can handle ambiguous event
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tolerance for uncertainty
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how you can handle uncertain events
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reinvest first profits, lack of adequate funding...
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funding hazard
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delegation hazard
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not wanting help from others (mgrial help)
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what will happen to the business after you die?
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mortality hazard
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a poor business is what kind of a hazard?
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planning and control
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set processes and mechanisms to encourage reward and creativity...
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administrative intrapeneurship opportunity
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using an idea champion to ensure completion...
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opportunistic intrapeneurship opportunity
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looking outside corporation, acquiring idea/talent...
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acquisitive intrapeneurship opportunity
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if it works, try it...
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imitative intrapeneurship opportunity
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