Management Test Two Chp 8

Front 1

Strategy

Back 1

??

Front 2

Strategic Mgmt

Back 2

comprehensive and ongoing mgmt process aimed at formulating & implementing effective strategies which align the org with its environment to achieve major org goals

Front 3

Effective Strategies

Back 3

promote a superior alignment between the org & its environment & achievement of its goals

Front 4

Distinctive Competence
Component of Strategy

Back 4

Something an org does exceptionally well

Front 5

Scope
Component of Strategy

Back 5

Range of markets in which an org will compete

Front 6

Resource Deployment
Component of Strategy

Back 6

How an org distributes its resources across the areas in which it competes

Front 7

Business-level Strategy
Strategic Alternatives

Back 7

set of strategic alt that an org chooses from as it conducts business in a particular market

Front 8

Corporate-level Strategy
Strategic Alternatives

Back 8

set of strategic alt that an org chooses from as it manages its operations simultaneously across several industries & several markets

Front 9

Strategy Formulation

Back 9

Set of processes involved in creating or determining the org's strategies

Front 10

Strategy Implementation

Back 10

methods by which strategies are operationalized or executed within an org

Front 11

Deliberate Strategy

Back 11

plan chosen & implemented to support specific goals, that is the result of rational, systematic and planned process of strategy formulation/implementation

Front 12

Emergent Strategy

Back 12

a pattern of action that develops over-time in the absence of goals or missions or despite goals & missions

Front 13

Evaluating Org Strengths
SWOT Analysis to formulate strategy

Back 13

Org strengths: skills & abilities enabling an org to conceive of & implement strategies
Common Org strengths: ??
Distinctive competencies: useful for competitive advantage & superior performance
Imitation of distinctive competencies

Front 14

Evaluating Org Strengths
SWOT Analysis to formulate strategy (2)

Back 14

Sustained competitive adv: distinctive can not be easily copied
Strategic imitation is difficult when: Distinctive competence is based on unique historical circumstances. Competence based on complex phenomenon (ex-org culture)

Front 15

Evaluating Org Weakness
SWOT Analysis to formulate strategy (2)

Back 15

Org weaknesses: skills & capabilities that do not enable an org to choose & implement strategies that support its mission.
Weakness overcome by: ??
Competitive disadv: org fails to implement strategies being implemented by competitors

Front 16

Evaluating Org Opportunities & Threats
SWOT Analysis to formulate strategy (2)

Back 16

Org opportunities: ares in org's environment that may generate high performance
Org threats: areas in org's environment that make it difficult for org to achieve high performance

Front 17

Porter's Generic Strategies
Formulating Business Level Strategies

Back 17

Differentiation strategy: org seeks to distinguish itself from competitors through quality of products. Save Money. Price is easiest thing to recreate
Overall cost leadership strategy: Reduce manf & other costs
Focus strategy: Org concentrates on specific regional market, product line, or group of buyers

Front 18

Implementing Porter's Generic Strategies
Implementing Business Level Stragies

Back 18

Differentiation Strategy: marketing & sales emphasize high quality high value image of org's products (Hageen Daas)
Overall cost leadership strategy: sales & marketing focus on simple product attributes & how they meet customer needs in a low-cost & effective manner (walmart)
Focus strategy: depends on which above alt is chosen for specific area (Ben & Jerry's)

Front 19

Miles & Snow's Strategy Types
Prospector
Defender

Back 19

Prospector -Encourages creativity to seek out new market opportunities & to take risks. Develops flexibility to meet changing market conditions by decentralizing its org structure. (Amazon, Rubbermaid)
Defender-focuses on defending its current markets by lowering its costs and/or improving the performance of its current products. (1st Mrs.Fields Dominos)

Front 20

Miles & Snow's Strategy Types
Analyzer
Reactor

Back 20

Analyzer: incorporates elements of both the prospector & defender strategies to maintain business & innovate (Amazon)
Reactor: usually not followed. no clear strategy. reacts to changed events. usually end in failure. (KMART)

Front 21

Implementing Miles & Stones Strategies
Prospector
Defender
Analyzer

Back 21

-encourage creativity to seek out new markets and take risks. develop flexibility to meet changing mkt conditions by decentrailizing org structure
-org will focus on defending its current markets by lowering its costs and improving the performance
-incorporate elements of both to maintain/innovate

Front 22

Product Life Cycle

Back 22

-Intro: Focus on getting product out the door without sacrificing quality
-Growth: ensuring quality & delivery, & begin to differentiate
-Mature: focus on low costs & new products. Essential stage if company is going to survive in long run
-Decline: figure out how to recapture market. Corp entropy

Front 23

Formulating Corp Level Strategies

Back 23

(SBU) Strategic Business Units- each business or group of business within an org engage in serving the same markets customers or products
Diversification- number of business an org is engaged in and extent to which these business are related
Single Product Strategy (Simplicity) - org manages 1 product. sells in single geo market. WD40

Front 24

Related Diversification

Back 24

-Strategy in which an org operates in several different business industries or market that are linked (Synergy)

Front 25

Bases of Relatedness

Back 25

Similar tech (philips boeing westing house)
Common distribution and marketing skills (RJR PG)
Common name brand & rep (Disney universal studios)
Common customers (IBM Merc Amf-head)

Front 26

Advantages of Related Diversification

Back 26

Reduces org dependence on any business activity thus reduces economic risk.
Reduces overhead costs associated with managing any one business through economies of scale & scope.
Allows an org to exploit strengths & capabilities in more than one business
Synergy (Whole > Sum of Parts)

Front 27

Unrelated Diversification

Back 27

strategy in which an org operates multiple businesses that are not logically associated with one another

Front 28

Adv of Unrelated Diversification
Disadv

Back 28

Stable corp level performances over time due to business cycles difference among multiple businesses.
Share risk

Firms with unrelated strategies fail to exploit important synergies putting them at competitive disadvantage to firms with related

Front 29

Becoming a diversified firm (1)

Back 29

Internal development of new products: within boundaries of traditional operations

Replacement of suppliers and customers: backward vertical integration (beginning a business that furnishes resources previously handled by a supplier). forward vertical integration ( intermediary selling more directly to customers. skipping middle man)

Front 30

Becoming a diversified firm (2)

Back 30

Mergers and Acquisitions: purchase of one firm by another (same size) purchase of one firm by a larger firm.

Purposes of Merger & Acquisitions: acquire complementary products linked by common tech and customers. To create or exploit synergies that reduce the combined org costs of doing business to increase revenue. Vertical integration.

Front 31

Major Tools for Managing Diversification

Back 31

Organization Structure

Portfolio mgmt techniques: methods used by diversified org to make decisions about what businesses to engage in and how to manage these multiple businesses to max corp performance

Techniques: BCB (2 by 2) GE (3by3)

Front 32

BCG Matrix

Back 32

evalute business relative to growth rate of their mkt & org's share of mkt

High Growth Star Question Mark
Low Growth Cash Cow Dogs
High Mkt Share Low Mkt Share

Front 33

GE Business Screen

Back 33

Considers more. More Attractive industry & more competitive a business is the more it invests in that business.

High Attraction Invest Invest Earn Selectively
Med Attraction Invest Selectively Divest
Low Attraction Selectively Divest Divest
Strong Medium Low
Competitive Stance

Front 34

Developing International & Goal Strategies
Global Efficiencies

Back 34

Location efficiencies: seeking lower input cost locations
Economies of scale: larger facilities result in lower cost (Cost co)
Economies of scope: broadening product lines (share overhead costs across p lines)

Front 35

Developing International & Goal Strategies
Multimarket flexibility
Worldwide learning

Back 35

-International businesses may respond to a change in 1
country by implementating a change in another country.
-Diverse operating environments of multinational corps contribute to org learning that can be used in other operating environments

Front 36

Strategic Alt for Internaitional Business
Home replication
Multidomestic

Back 36

-apply distinctive competences developed in home mkt to foreign mkt. Best when firm's competences are valuable in several types of mkts

-used by firms that manage a portfolio of international business as realtively autonomous & indep units. Best when national demands for customization are high

Front 37

Strategic Alt for Internaitional Business
Global
Transnational

Back 37

-Standarizing across all nations. Best: commodity-like productsor in industry that demands high efficiency

-pursue both centralization/decentralization using approach that makes sense. Best: complex industries & co w/ highly skilled int. mgmt