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59 Cards in this Set
- Front
- Back
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What is the strategic management process? |
Formulation, Development, Implementation, and Evaluation |
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What is done in the Development stage of strategic management? |
Organizational strategies will be selected |
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What is the outcome of the Formulation step in strategic management? |
A whole set of strategic statements that describe the organization's mission, vision, values, and goals. |
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What happens during the Implementation stage of strategic management? |
Strategies are translated into specific action plans and resources are allocated by strategic priority. |
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What happens during the Evaluation stage of strategic management? |
Specific performance objectives are established |
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What is a strategic lever and what does it do? |
A strategic lever helps to support the strategy. It does this by magnifying the results of an organization's efforts. For example, org. structure or culture can be a strategic lever. |
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What is a pivotal talent pool? |
Those employees whose skills are critical to the organization's strategy |
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What happens during the Formulation stage of strategic management? |
Involves gathering internal and external information, carefully sorting the info into significant patterns, and priortizing and weighting critical elements. |
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What is an organization's Life Cycle? |
The way in which organizations grow, reach a high point and then gradually diminish |
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What are the four phases of an organization's life cycle? |
Introduction, Growth, Maturity, Decline |
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What should HR's focus be during an organization's introductory phase of its life cycle? |
Help to build a foundation for the organization by finding the right leaders and creating the right culture. |
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What should HR's focus be during an organization's Growth phase of its life cycle? |
Develop organizational structure, process standardization, T&D, performance management, adjusting org culture, employee engagement. |
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What should HR's focus be during an organization's Maturity phase of its life cycle? |
Streamline processes, culture, engagement |
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What should HR's focus be during an organization's Decline phase of its life cycle? |
RIFs, change management. |
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What method supports the completion of an environmental scan? |
A PEST analysis (examining political, economic, social, and technological external forces) |
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In what ways can a PEST analysis be used in HR? |
1. to do an environmental scan 2. to understand external factors impacting recruitment efforts 3. can be conducted organization-wide, for a specific team/unit or for specific activities. |
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What is a mission statement? |
What activities the organization intends to pursue - a very concise statement of its strategy |
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What is a vision statement? |
A guided image of the organization's desired future |
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What are BHAGs? |
Big, hairy, audacious goals. Goals that are very challenging to meet. |
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What is a leading indicator? |
A KPI that is predictive in that action in this area can change furture performance and help achieve success e.g. employee satisfaction |
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What is a lagging indicator? |
A KPI that describes effects that have already taken place and cannot be changed e.g. turnover. |
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What does SMART goals stand for? |
Specific, Measurable, Attainable, Relevant, Timely |
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List the steps in the benchmarking process |
1. define KPIs 2. Meaure current performance 3. Identify appropriate benchmarks & obtain performance data 4. Identify performance gaps between oneself and the benchmark organization(s) 5. Set objectives and implement necessary intiatives |
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What is a balance sheet? |
A statement of the organization's financial position. Includes assets, liabilities and equity at a particular time. |
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Finish this balance equation: Assets = Equity + ___________ |
Liabilities |
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Finish this balance equation: Equity = _________ - Liabilities |
Assets |
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What is an income statement? |
Compares revenue, expenses and profits over a specified period of time. Provides a "bottom line" look at how the organization is performing. |
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Complete this equation for income statement: Revenues - __________ = Net Income |
Expenses |
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Gross Profit Margin = Gross Profit/_________ |
Net Sales |
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What does the gross profit ration tell you? |
How much of each sales dollar you can expect to use to cover your operating expenses and generate profit. |
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What does EBIT mean? |
Earnings before interest and taxes |
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Gross Profit - EBIT = ___________ |
Net Income |
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What is a cash flow statement? |
Reflects all organization's activities - shows how money is flowing into and outside of the organization over a defined period of time. |
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When creating the cash flow statement, where do you pull this information from? |
The balance sheet and income statement |
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What three sections does the cash flow statement consist of? |
Operations, investing and financing |
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What are activity ratios? |
They measure the efficiency with which resources are used to generate profit e.g. number of inventory turns in a period or average age of inventory |
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What is the organization's strategic fit? |
The compatibility of an organization's strategy with its environment, especially regarding its goals/values and the resources/capabilities it can deploy toward strategic goals. |
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What is meant by "the organization is 'optimized' to reach its strategic goals? |
It means that the organization will do whatever it takes to achieve the strategic goals. |
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What is meant when an organization creates a strategic position? |
It's a position in which the organization enjoys a competitive edge over its competition. |
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What is the organization's corporate strategy? |
This describes where the organization will compete in terms of markets and industries. |
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An organization's strategic position and corporate strategy combine to create its _____________ |
overall strategy |
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What is a blue ocean strategy? |
An innovative idea(s) that is in a completely new arena often within an existing industry. |
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In Porter's Competitive Strategies model, what are the three types of competitive advantage strategies? |
Cost Leadership, Differentiation and focus (which applies cost leadership or differentiation to an industry or market segment). |
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How does a firm establish a strategy of cost leadership? |
By competing with the lowest prices |
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How does a firm establish a strategy of differentiation? |
By offering a product at a higher price, but offering either a better product or something different than other similar products offer. |
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When a company chooses to compete horizontally, what does this look like? |
Within its own industry, it acquires competitors or similar industries but within a different region. |
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When a company chooses to compete vertically, what does this look like? |
The company purchases enterprises related to its present core activities - it controls more than one stage of its supply chain e.g. Toyota and its control of parts suppliers. |
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What is a strategic alliance? |
Companies agree to share assets to varying degrees. The relationship may have varying degrees of tightness and formality. Some alliances involve customers, partners and competitors. |
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What is a joint venture? |
Two or more companies invest together in forming a new company that is jointly owned |
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What is an equity partnership? |
One firm acquires partial ownership through purchase of shares. The relationship may be general (sharing proportionally in control, profits, and liabilities) or limited (no managerial authority). Partnership agreements define leadership and division or profits/losses. |
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What is contract manufacturing? |
A firm arranges for a local manufacturer to produce components or products as a means of lowering labor costs. |
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What is a brownfield operation? |
When a company purchases a used, older company that requires repurposing |
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What does due diligence involve for the HR role in a merger/acquisition? |
Structural, technological, financial and legal issues/considerations |
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What are WIGs? |
Wildly Important Goals that align with the organization's goals and need significant focus and attention. |
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What is the purpose of a Growth Share Matrix? |
To determine where the best investments can be made in an organization. Products or business units are assessed by plotting on a grid. The X axis is Market Growth Rate and the Y axis is Market Share Increases (Stars, Question Marks, Dogs, Cash Cows) |
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What is a Nine-Box Matrix? |
A grid/matrix that can be used to decide where investments should be made in talent. |
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What are "horizons of growth"? |
A model for business growth which allows an organization to manage present opportunities and future value. The success of the previous initiative provides resources to help fund the next initiative. |
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What are the main components of a business case? |
1. statement of need, situation or problem 2. Recommended Solution 3. Risks and opportunities 4. Estimated costs and timeframe |
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What are the 5 elements needed for effective implementation of strategy? |
1. Communicate to entire team 2. Communicate to leaders 3. Leadership support 4. Communication and information flow freely across silos 5. Provide enough info to enable workers to connect their work to the overall strategy |
