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45 Cards in this Set
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Set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals |
Strategic management |
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plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals |
Strategy |
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What sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace |
competitive advantage |
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What is the essence of formulating strategy? |
choosing how the organization will be different |
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What are the 4 elements of competitive advantage? |
Target customers Achieve 'Synergy' Create Value Exploit Core Competence |
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What was 'Groupon's' competitive advantage mistake? |
Not Targeting the right customers |
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Something a company does especially well in comparision to it's competitors |
Core competence |
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What 'core competencies' do Family Dollar and Southwest Airlines focus on? |
organizational efficiency (that allows them to keep costs low) |
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def includes a careful assessment of strengths, weaknesses, opportunities, and threats that affect organizational performance |
SWOT analysis |
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what does SWOT stand for |
strengths weaknesses Opportunities threats |
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Where do executives acquire information about internal strengths and weaknesses? |
from reports: budgets, financial ratios, profit and loss statements, surveys of employee attitudes and satisfaction -face-to-face discussions throughout hierarchy |
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Where to executives acquire information about external threats and opportunities |
customers, government reports, professional journals, suppliers, bankers, friends in other organizations, consultants, association meetings |
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What category in the audit checklist is: Management quality Staff quality Degree of centralization organization charts Planning, information, control systems |
Management and organization |
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What category in the audit checklist of Strengths and weaknesses is: Distribution channels Market share Advertising efficiency Customer satisfaction Product quality Service reputation Sales force turnover |
Marketing |
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What category in the audit checklist of strengths and weaknesses is: Employee experience, education Union Status Turnover, absenteeism Work satisfaction Grievances |
Human resources |
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What category in the audit checklist of strengths and weaknesses is: Profit margin Debt-equity ratio inventory ratio Return on investment (ROI) credit rating |
Finance |
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What Categroy in the audit checklist of strenghts and weaknesses is: Location, resources machinery obsolescence Purchasing system Quality control productivity/efficiency |
Production |
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What Category of the audit checklist of strengths and weaknesses is: basic applied research Laboratory capabilities Research programs New-product innovations Technology innovations |
Research and Development |
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Threats and opportunities are part of what environment? |
external |
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what are the 10 sectors of the environment |
task: customers competitors suppliers labor market
General technological natural sociocultural legal/political economic international |
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SBU? |
strategic business unit |
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What are the 6 functional areas of an organization? |
Management/organization marketing human resources finanec production research and developmetn |
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ROI? |
return on investment |
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BCG? |
Boston consulting Group |
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what are the 4 parts of the BCG matrix? |
Stars (high MS high BGR) Question Marks (Low MS, high BGR) Cash Cows (high MS, low BGR) Dogs (low MS, low BGR) |
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which part of BCG matrix? rapid growth and expansion |
stars |
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what part of BCG matrix? milk to finance question marks and stars |
Cash Cows |
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What part of BCG matrix? new ventures, risky, a few become stars, others are divested |
Question Marks |
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What part of BCG matrix? no investment. Keep if some profit. consider divestment. |
Dogs |
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what matrix helps with thinking about 'porfolio strategy'? |
BCG matrix |
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how does BCG matrix organize businesses? |
Market share business growth rate |
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what is a business's portfolio? |
all of it's businesses across different markets |
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what are the 3 competitive strategies that Porter thinks organizations should choose from? |
diferrentiation, cost leadership, focus |
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What are the 4 categories in teh Porter's competitive strategies matrix? |
Differentiation Cost Leadership Focused cost leadership Focused Differentiation |
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Broad 'Strategic target' Distinctive 'Source of Advantage'
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Differentiaion -Target, Apple |
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Broad 'Strategic target' Low costs 'Source of advantage'
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Cost Leadership -Walmart |
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-acts in a flexible, lossely knit way; strong coordination among departments -strong capability in basic research -creative flair, thinks "out of the box" -strong marketing abilites -rewards employee innovation -corporate reputation for quality or technoligcal leadership |
Differentiation |
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-strong central leadership. tight cost controls -maintains standard operating procedures -Easy-to-use manufacturing technologies -Highly efficient procurement and distribution systems -close supervision, finite employee empowerment |
Cost Leadership -walmartB |
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-uses characteristics of differentiation strategy directed at particular target customer -values flexibility and customer intimacy -pushes empowerment to employees with customer contact |
Focused differentiation -Imax |
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-uses characteristics of cost leadership strategy directed at particular target customer -frequent detailed control reports -measures cost of providing product or service and maintaining customer loyalty |
Focused Cost leadership -aldi -Ikea |
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Broad strategic target, Low cost advantage |
cost leadership Walmart |
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Narrow strategic target low costs advantage |
Focused cost leadership -ikea aldi |
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What matrices did we study in chapter 5? |
Porter's competitive strategies BCG matrix (portfolio strategy) |
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what are Porter's competitive strategies also called? |
generic strategies |
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what is Walmart's core compitency? |
operational efficiency. value |
