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51 Cards in this Set
- Front
- Back
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Define Strategic Management.
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– Art and science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives. To exploit and create new and different opportunities for tomorrow.
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What are the different stages of the Strategic Management (focus on resource management/implementation stage)?
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• Strategy formulation :
Vision & Mission External opportunities & Treats Internal Strengths and Weaknesses Long-term objectives Alternative strategies Strategy selection Strategy implementation (action stage): Annual objectives Policies Employee motivation Resource allocation Strategy evaluation: Internal review External review Performance measurement Corrective action |
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What is a vision statement?
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– “What do we want to become” Agreement on the basic vision for which the firm strives to achieve in the long term is especially important.
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What stage of the strategic management process do we identify internal strength and weaknesses?
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– Formulation stage.
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What is intuition?
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– is based on past experience, judgment and feelings. Intuition is useful for decision making in conditions of:
Great uncertainty Little precedent Highly interrelated variables Several plausible alternatives |
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What is competitive advantage?
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Anything that a firm does especially well compare to its rival (having $ in the recession time).
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What one factor significantly improves buying and selling in a company?
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Adapting to change???
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What is the first step in strategic management?
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- Formulation
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What is a mission statement?
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– answers the question “What is our business?” An enduring statement of purpose that distinguishes one organization from other similar enterprise. A declaration of an organization’s “reason for being”.
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Who/what controls or not control external opportunities and treats?
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Economic (decline value of the $), social, cultural, demographic, environmental (a national catastrophe), political, legal (passage of a new law), governmental, technological (online shopping) & competitive trends/events control it either to benefit/harm an organization.
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Integrative analysis:
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Integrative analysis complements intuition, both are used by managers @ all levels in an organization,
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What question does the Vision Statement answer?
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it answers the question “What do we want to become”, where are we going?
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Where are the places a company Mission Statement is found?
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– In the front of annual reports or displayed throughout a firm’s premises and are distributed with company information sent to constituencies.
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What’s the role of the Vision and Mission statement in an organization?
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– A clear vision provides the foundation for developing a comprehensive mission statement. The vision statement should be short. The mission is an enduring statement of purpose that distinguishes one organization from other similar enterprises. A declaration of an organization’s “reason for being”
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Which comes first, vision or mission?
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– The vision statement comes first as it answers the basic question. The is an enduring statement of purpose that distinguishes one organization from other similar
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What questions are you answering when you develop a mission & vision statement?
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– The Vision answer the question “What do we want to become” and the Mission answers the question “What is Our Business” and reveals 1) What the organization wants to be 2) whom we want to serve .
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What’s the purpose or why have a Vision and Mission statement?
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– For effective strategic management. They are also needed before alternative strategies can be formulated and implemented.
• Provide unity of direction • Promote shared expectations • Consolidate values • Project a sense of worth and intent • Affirm the company’s commitment to responsible action |
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What is the order of developing the Vision and Mission statement?
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• Have managers read related articles • Have managers prepare a vision and mission statement for the organization • Merge the documents into one and distribute • Gather feedback from managers • Meet to revise the final document. |
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Who should be involved in developing a company Vision and Mission statement?
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both employees and managers together, with a focus on managers should shape the vision and mission statement because through involvement, people become committed to an organization. Shared vision creates a commonality of interest that can lift workers out of the monotony of daily work and put them into a new world of opportunity and challenge.
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What is the effect of a change in mission?
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the global recessions has resulted in many firms changing direction and thereby altering their entire vision and mission in order to survive.
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Who are your stakeholders?
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– the individuals and groups of individuals who have a special stake or claim on the company. Stakeholders include employees, managers, stockholders, boards of directors, customers, suppliers, distributors, creditors, governments, unions, competitors, environmental groups and the general public.
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What are the characteristics of a mission statement
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Broad in scope do not include monetary amounts, numbers, percentage, ratios, or objectives
• Less than 250 words in length • Inspiring • Identify the utility of a firm’s products • Reveal that the firms is socially responsible • Include nine components – customers, products or services, markets, technology, concern for survival/growth/profit, philosophy, self-concept, concern for public image, concern for employees. • Reconciliatory enduring |
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What can limit your organization growth as it relates to its Vision and Mission statement?
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without clear statements of vision and mission, a firm’s short-term actions can be counterproductive to long-term interests.
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What is the focus of an external audit?
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– the focus or purpose is to develop a finite list of
• Opportunities that could benefit a firm • Threats that should be avoided |
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What does the external audit identify?
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– it identify and evaluate factors beyond the control of a single firm such as:
• Increased foreign competition • Population shifts • Aging society • Fear of traveling • Stock market volatility |
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What is the first step in the external audit process?
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– is gather competitive intelligence. The other steps are assimilating information and evaluate.
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What is identified when you conduct an External Audit?
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• Important to achieving long-term and annual objectives,
• Measurable, • Applicable to all competing firms and, • Hierarchical in the sense that some will pertain to the overall company and others will be more narrowly focused on functional or divisional areas. |
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What focus in the external environment is most important as it relates to government contracts?
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(pg 68) – for industry and firms that depends heavily on government contract or subsidies , political forecasts can be the most important part of an external audit. The increasing global interdependence among economic, market, governments and organizations makes it imperative that firms consider the possible impact of political variables on the formulation and implementation of competitive strategies.
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Understand the whole concept of :
Patent Laws • Anti Trust • Tax Rates . Lobbying And how organizations’ are affected? |
• Patent Laws: given for your creativity, not more than 20 years (case for new medications)
• Anti Trust (Protection and encourage competition within companies, opposite monopoly ) • Tax Rates (higher taxes rates to discourage/encourage import/export internationally ) • Lobbying negative /positive, it depends |
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What is Competitive Intelligence?
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– A systematic and ethical process for gathering and analyzing information about the competition’s activities and general business trends to further a business’s own goals. Sources of competitive Intelligence are internet, employees, managers, suppliers, distributors, customers, creditors, consultants, trade journals, want ads, newspaper articles. Government filing and competitors.
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What is the nature of the competitiveness among firms when other firms can easily enter an industry market?
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This is viewed as “Potential Entry of New Competitors” and whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms increases. The actions taking by incumbent firms generally fortify their position and take actions to deter new entrants, such as lowering prices, extending warranties, adding features, or offering financing specials.
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Which audit allows employees to better understand their jobs – Internal or External?
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Internal
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Organizational Culture –
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“a pattern of behavior that has been developed by an organization as it learns to cope with its problem of external adaptation and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think, and feel.”
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What are cultural products?
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– cultural products include values, beliefs, rites, rituals, ceremonies, myths, stories, legends, sagas, language, metaphors, symbols, heroes and heroines.
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What‘re the three (3) traits that determine if resources are valuable?
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– resources are valuable if they:
• Rare • Hard to imitate • Not easily substitutable |
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What is planning?
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– consist of all those managerial activities related to preparing for the future. Specific tasks include forecasting, establishing objectives, devising strategic, developing policies and setting goals.
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What are the functions/duties of management
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• Planning - Formulation • Organizing - Implementation • Motivating - Implementation • Staffing and - Implementation • Controlling – Strategy Evaluation |
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What is organizing (2?)
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– includes all those managerial activities that result in a structure of task and authority relationships. Specific areas include organizational design, job specialization, job descriptions, job specifications, span of control, unity of command, coordination, job design, and job analysis.
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What is motivating?
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– involves efforts directed towards shaping human behavior. Improving employee morale and managerial morale. The act of using psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence.
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What is the 1st step of the four in the control function?
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– Establishing performanace standards.
Measuring individual & organizational performance Ensuring actual operations conform to planned operations Taking corrective actions |
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How do organizations advertise in a recession when life is different?
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Desirable Characteristics of Ads in a Global Economic Recession:
• Take a direct aim at competitors, so leaner, meaner, and to the point. • Be less lavish and glamorous, requiring less production dollars to develop. • Be short and sweet, mostly 10 ad 15 second ads rather than 30 + seconds. • “Make you feel good” or “put you in a good mood” because (a) ads can be more easily avoided than ever and (b) people are experiencing hard times and seek comfort. • Be more pervasive such as on buses, elevators, cell phones and trucks. • Appear less on Web sites as banner ads become the new junk mail. • Red will overtake the color orange as the most popular as color. • More than ever emphasize low price and value versus rivals. • More than ever emphasize how the product/service will make your life better. |
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What is horizontal integration?
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seeking ownership or increased control over competitors.
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What is backward integration?
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(aspect of vertical integration strategies) – seeking ownership or increased control of a firm’s suppliers.
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What is forward integration?
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(aspect of vertical integration strategies) – Gaining ownership or increased control over distributors or retailers.
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What is product development as it relates to expenses?
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is a strategy that seeks increased sales by improving or modifying present products or services. It involved large research and development expenditures.
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What are the five retrenchment strategies?
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• Chapter 7 – Liquidation
• Chapter 9 – municipalities • Chapter 11 – reorganization • Chapter 12 – family farmers • Chapter 13 – small businesses |
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What is divestiture?.
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( a defensive strategy along with retrenchment and liquidation)– The selling of a part of an organization. It often is used to raise capital for further strategic acquisitions or investments. Also use as an overall retrenchment strategy
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What is joint venture?
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is popular strategy that occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity. Often, the two or more sponsoring firms form a separate organization.
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What are mergers?
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Commonly used way to pursue strategies. A merger occurs when two organizations of about equal size unite to form one enterprise.
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What is Outsourcing?
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is a means for achieving strategies. It is contracting with another company, usually abroad to have it perform an activity the organization previously performed itself. Examples of these services are payroll, accounting, and information system. Outsourcing is less expensive, allows firm to focus on core business, provide better services etc.
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What are the predictions as it relates to minorities?
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By 2075, the US will have no racial or ethnic majority. Hawaii, California, New Mexico have no racial or ethnic majority. New trends r creating a different type of consumer.
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