Strategic Management Test One

Front 1

Strategy

Back 1

Managements plan for running the business and conducting operations. Consists of competitive moves and business approaches

Front 2

Mission statement

Back 2

A brief overview of a company’s present business purpose and raise d’etre, and sometimes its geographical coverage or standing as a market leader.

Front 3

Strategic Intent

Back 3

A company exhibits strategic intent when it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective.

Front 4

Business Model

Back 4

Addresses the question “how do we make money in this business”
Concerns whether revenues and costs flowing from the strategy demonstrate a business can be amply profitable and viable

Front 5

Strategic Vision

Back 5

Top management’s views and conclusions about the company’s direction and future product/market/customer/technology focus. Gives direction to answer the question “Where are we going?”

Front 6

Crafting and Executing Strategy

Back 6

a. Five Phases
i. Develop a Strategic Vision
o Where the company needs to head and what its future product/market/customer technology focus should be.
ii. Set objectives
o Use them as yardsticks for measuring the company’s performance and progress.
iii. Craft a strategy to achieve the objectives
o Move the company along the strategic course that management has charted
iv. Implement and execute the chosen strategy efficiently and effectively
v. Evaluate performance and initiate corrective adjustments.
o Focus on the long term direction, objectives, strategy, or execution in light of actual experience, changing conditions, new ideas, and new opportunities.

Front 7

Attributes of a strategic vision

Back 7

a. Distinctive & Specific
b. Provide an understanding of what management wants its business to look like
c. Provide managers with a reference point in making strategic decisions and preparing the company for the future.
d. A bit beyond the company’s reach but progressively attainable
e. Must be definitive about how the company’s leaders intend to position the company where it is today.

Front 8

What is effectively worded strategic vision statement?

Back 8

a. Graphic- paints a picture of what the company wants to be
b. Directional – Forward looking; Strategic course
c. Focused – Specific enough to provide managers with guidance
d. Flexible- has room for adjustment
e. Feasible- is it reasonably attainable
f. Desirable – Indicates why the chosen path makes good sense and in long-term interest of stake holders.
g. Easy to communicate- Explainable in 5-10 minutes. Ideally reducible to a slogan.

Front 9

What is a company’s “Macroenvironment”?

Back 9

a. It includes
i. General Economic Conditions
ii. Legislation and Regulations
iii. Societal values and lifestyles
iv. Technology
v. Immediate industry and competitive environment

Front 10

Five Forces of Porter

Back 10

(competition model and how it effects each component)
a. Suppliers of raw materials, parts, components, or other resource inputs
b. Firms in other industries offering substitute products
c. Buyers
d. Potential new entrants
e. Rivalry among competing sellers.

Front 11

Competitively important value chain activity.

Back 11

a. Supply Chain Management
b. Operations
c. Distribution
d. Sales and Marketing
e. Service

Front 12

Perceived Value

Back 12

What the buyer believes to be the value of an item or idea

Front 13

Signaling Value

Back 13

value based on price, attractive packaging, advertising, professionalism, and having a list of prestigious customers.

Front 14

Strategic Alliances

Back 14

a formal agreement between two or more separate companies in which there is a strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control, and mutual dependence.

Front 15

Company Resource Strength

Back 15

represent a company’s endowment of competitive assets

Front 16

SWOT

Back 16

(Strengths Weaknesses Opportunities and Threats) – Used to identify these issues and make a company better it’s strategy.

Front 17

Competitive Strength Analysis

Back 17

Rate your level of competitiveness on key success factors, interpret where you are now, and what you can do to improve.

Front 18

Activity-based costing

Back 18

Involves establishing expense categories for specific value chain activities and assigning costs to the activity responsible for creating the cost.

Front 19

Benchmarking

Back 19

a tool that allows a company to determine whether its performance of a particular function or activity represents the “best practice” when both cost and effectiveness are taken into account.

Front 20

Related Diversification

Back 20

occurs when a company has several distinct lines of product that have a strategic fit. I.E. Syrup and pancake mix.

Front 21

Vertical Integration Strategy

Back 21

When a company owns all parts of the production and sale process starting with the refinement of the natural resources. Dunkin doughnuts was vertically integrated. Allows for reduction of costs and total control of the creation and sale of a product.

Front 22

Rapid-Growth Industry

Back 22

an industry that has the potential to expand faster than other industries. Trash can example he gave, close, middle, and far garbage cans i.e. technology

Front 23

Differentiation strategy

Back 23

create something new, reinforce a new take on a product, or make a product better to make people think they need it or change their perception of it.

Front 24

Five Factors of Strategic Alliance

Back 24

1. It is critical to the company's achievement of an important objective.
2. It helps build, sustain, or enhance a core competence or competitive advantage.
3. It helps block a competitive threat.
4. It helps open up important new market opportunities.
5. It mitigates a significant risk to a company's business.

Front 25

Defensive Strategies

Back 25

usually take the form of making moves that put obstacles in the path of would-be challengers and fortify the company's present position while undertaking actions to dissuade rivals from even trying to attack.

Front 26

3 Cross-Country Differences

Back 26

Cultural, Demographic, and Market Conditions

Front 27

Why companies expand into foreign markets

Back 27

new customers, lower cost, core competency

Front 28

Advantage or disadvantage of customizing product to locals.

Back 28

Disadvantage: higher costs

Front 29

Concentrate activities in a few locations except

Back 29

buyer related activities

Front 30

Generic Strategic Approaches

Back 30

Maintain a national production base and export goods to foreign markets.
License foreign firms to use the company's technology or to produce and distribute the company's products.
Employ a franchising strategy.
Follow a multicountry strategy.
Follow a global strategy.
Use strategic alliances or joint ventures with foreign companies as the primary vehicle for entering foreign markets.

Front 31

Who heads up local operations?

Back 31

Local managers