Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
32 Cards in this Set
- Front
- Back
|
Strategic Management
|
consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.
|
|
|
Strategic Management
|
includes strategy analysis, strategy formulation, and strategy implementation.
|
|
|
Strategic Management
|
recognizes the trade-off between effectiveness and efficiency.
|
|
|
FALSE
Former Chrysler vice chairman Robert Lutz stated: "We are here to serve the shareholder and create shareholder value.... |
This is NOT and example of a symbiotic approach to stakeholder management.
|
|
|
Stockholders, employees, and the community are among a firm's stakeholders.
|
TRUE
|
|
|
Symbiosis
|
is the ability to recognize interdependencies among the interests of multiple stakeholders within and outside an organization.
|
|
|
Organizational vision statements
|
are the beginning point for the hierarchy of goals throughout the organization. An organization's vision statement should be massively inspiring, overarching, and long-term.
|
|
|
Social responsibility
|
is the idea that organizations are not only accountable to stockholders but also the community at large.
|
|
|
A missions statement
|
encompasses both the purpose of the company as well as the basis of competition and competitive advantage.
|
|
|
Environmental monitoring
|
tracking the evolution of environmental trends sequences of events, or streams of activities.
|
|
|
Economies of scale
|
deter entry by forcing the entrant to come in at a large scale and risk strong reaction from existing firms or come in at a small scale and accept a cost disadvantage.
|
|
|
If able to maintain a credible threat of forward integration
|
the power of suppliers will be enhanced.
|
|
|
Environmental forecasting
|
involving the development of plausible projections about the direction, scope, and speed of environmental change.
|
|
|
Tort reform, ADA, and deregulation of utility and other industries
|
are an important element of the political/legal segment of the general environment.
|
|
|
The bargaining power of the buyer is greater than that of the supplier
|
when the buyer's profit margin is low.
|
|
|
According to Porter's Five Forces model, a supplier group can gain power
|
when there is a lack of importance of the buyer to the supplier group.
|
|
|
Exit barriers arise from
|
specialized assets with no alternative use, governmental and social pressures, and strategic rinterrelationships with other business units within the same company.
|
|
|
Emerging sociocultural changes in the environment include
|
the increasing educational attainment of women in the past decade.
|
|
|
Scanning the general environment would identify information on
|
competitive rivalry.
|
|
|
The threat of new entrants is high when there are
|
high differentiation among the competitor's products and services.
|
|
|
Rivalry among competing firms
|
is considered a force in the "Five Forces model".
|
|
|
To illustrate interrelationships among different segments of the general environment:
|
The persistence of large U.S. trade deficits (macroeconomic) has led to greater deman for protectionist measure, such as trade barriers and quotas (political/legal). These measures lead to higher prices for U.S. consumers and fuel inflation (macroeconomic).
|
|
|
Supplier power has increased because of the Internet for all of the following reasons except
|
the process of disintermediation make it possible for some suppliers to reach end users directly.
|
|
|
The bargaining power of the buyer is greater than that of the supplier when
|
the buyer's profit margin is low.
|
|
|
Two of the key inputs to developing forecasts discusses in the text are
|
environmental scanning and competitor intelligence.
|
|
|
The aging of the population, changes in ethnic composition, and effects of the baby boom are
|
Demographic changes
|
|
|
Product differentiation by incumbents act as an entry barrier because
|
new entrants will have to spend heavily to overcome existing customer loyalties.
|
|
|
Large economies of scale
|
is an entry barrier.
|
|
|
Forward integration
|
A large fabricator of building components purchased a steel company to provide raw materials for its production process.
|
|
|
Buyer power will be greater when
|
It is concentrated or purchases large volumes relative to seller sales.
|
|
|
The bargaining power of suppliers increases as
|
switching costs for buyers decrease.
|
|
|
In the value chain analysis, the activities of an organization are divided into two major categories of value activites: primary and support. Which of the following is a primary activity?
|
Repairing the product for the consumer.
|
