Strategic Planning Modern Mangement

Front 1

________ _______ is long-range planning that focuses on the organization as a whole.

Back 1

Strategic Planning

Front 2

What is usually defined as a period of time extending about 3-5 years years.

Back 2

Strategic planning.

Front 3

What is defined as a broad and general plan developed to reach long-term objectives.

Back 3

Strategy

Front 4

Does strategy give broad direction to the organization?

Back 4

Yes

Front 5

Organizational strategy generally focuses on areas such as;

Back 5

marketing, finance, production, research, development, and public relations.

Front 6

What is the end result of strategic planning?

Back 6

Strategy.

Front 7

What is strategy management?

Back 7

Process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy.

Front 8

What are the 5 steps that the strategy management consists of?
Are these 5 steps steps in the strategy management process sequential and continuing with feedback all through the process?

Back 8

1. Environmental analysis.
2. Establishment of an organizational direction.
3. Strategy formulation.
4. Strategy implementation.
5. Strategic control.

Yes

Front 9

What is the study of the organizational environment to pinpoint environmental factors that can significantly influence org. operations.

Back 9

Environmental Analysis

Front 10

What are the 3 levels of the organizational environmental structure?

Back 10

1. general
2. operating
3. internal

Front 11

The level of an Org's external environ. that contains components having broad long-term implications for managing the org.

Back 11

General Environment.
Components are usually;
Social
Political
Economic
Technology
Legal

Front 12

How is economics related to the general environment?

Back 12

Economics can influence the environment in which a company operates, and its ease or difficulties in attempting to reach objectives.

Front 13

Should the organizational strategy reflect the economic issues in the organizational environment?

Back 13

Yes

Front 14

Is the social component part of the general or internal environment?

Back 14

General

Front 15

What does the social component describe?

Back 15

The characteristics of the society in which the org. exists.

Front 16

What 2 features of society are studied during environmental anaylsis?

Back 16

Demographics
Social Values

Front 17

What is demographics?

Back 17

It is the statistical characteristics of a population.

Front 18

Can changes of the number of people or income distribution of a population influence an organizations' environment and thus reflected in its strategy?
And if yes give an example.

Back 18

Yes.
Recruiting new employees. If a certain type of employee needs education and is hard to come by the organization needs to compete more intensely to attract the correct type person to their org.

Front 19

What is the relative degrees of worth that society places on the ways in which it exists and functions?

Back 19

Social values

Front 20

Do social values ever change?

Back 20

yes

Front 21

What does the political component of the general environment relate to?

Back 21

Government affairs.

Front 22

Which part of the general environment contains passed legislation - they are rules or laws that society's members must follow?

Back 22

Legal component.

Front 23

What is the part of the general environment that includes new approaches to producing goods and services?

Back 23

The technology component.

Front 24

What is the operating environment?

Back 24

Contains components normally having relatively specific and immediate implications for managing the org.

Front 25

What are the 5 major components of the operating environment?

Back 25

1. Customer component
2. Competition component
3. Labor component
4. Supplier component
5. International component

Front 26

Which operating environment component is composed of factors relating to thoe who buy goods and services provided by the org.?

Back 26

Customer component

Front 27

The competition component is the operating environment segment that is composed of those with whom and organization must ______ in order to obtain _________.

Back 27

Battle,
Resources.

Front 28

What helps management comprehend the strengths, weaknesses, capabilities, and likely strategies of existing and potential competitors?

Back 28

The competition component.

Front 29

Which component of the operating environment is composed of factors influencing the supply of workers available to perform needed org. tasks?

Back 29

The Labor component.

Front 30

What are some issues of the labor component?

Back 30

-Skill levels
-Average age of potential workers.
-trainability
-desired wage rates
-desire to work for particular organization.

Front 31

Which component of the operation environment deals with the individuals or agencies that provide org. with the resources they need to produce goods or services?

Back 31

The supplier component.

Front 32

What part of the organization's environment has immediate and specific implications for managing the organization?

Back 32

Internal Evironment.

Front 33

Which component of the operating environment is composed of factors influencing the supply of workers available to perform needed org. tasks?

Back 33

The Labor component.

Front 34

What are some issues of the labor component?

Back 34

-Skill levels
-Average age of potential workers.
-trainability
-desired wage rates
-desire to work for particular organization.

Front 35

Which component of the operation environment deals with the individuals or agencies that provide org. with the resources they need to produce goods or services?

Back 35

The supplier component.

Front 36

What part of the organization's environment has immediate and specific implications for managing the organization?

Back 36

Internal Evironment.

Front 37

From a specific management viewpoint, what does the internal environment include?

Back 37

Planning, Organizing, Influencing, and Controlling within the organization.

Front 38

What is the 2nd step of the strategy management process?

Back 38

Establishing organizational direction.

Front 39

Through an interpretation of information gathered during environmental anyalysis, managers can determine the _________ in which an organization should move.

Back 39

Direction

Front 40

What are the 2 important ingredients of organizational direction?

Back 40

1. Organizational mission.
2. Organizational objectives.

Front 41

What is the most common initial act in establishing org. direction?

Back 41

Determining an organizational mission.

Front 42

Define organizational mission?

Back 42

It's the purpose for which - the reason why - an org. exists. It's a very broad statement.

Front 43

What is the organizational mission based upon?

Back 43

Based on a thorough analysis of info generated through environmental analysis.

Front 44

What is a mission statement?

Back 44

A written document that describes and explains what the mission of an org. actually is. Usually bases on input from management and nonmanagement input.

Front 45

Why is the mission statement written?

Back 45

Ensures that all org. members will have easy access to it and thoroughly understand exactly what the org. is trying to accomplish.

Front 46

Why is the mission statement important to an org.?

Back 46

It helps manamgement increase the probability that the org. will be successful.

Front 47

What 3 ways does the mission statement help org. be successful?

Back 47

1. Helps management focus on human effort in a common direction.
2. Serves as a sound rationale for allocating resources. It gives managers guidelines about how to best use resources to accomplish org. purpose.
3. Helps management define broad but important job areas winthin an org. and thus critical jobs that must be accomplished.

Front 48

Is there a link between mission statement and objectives?

Back 48

Useful organizational ofjectives must reflect and flow naturally from an org. mission that, in turn, was designed to reflect and flow naturally from the results of an envronmental analysis.

Front 49

What is strategy formulation?

Back 49

It is the process of determining appropriate courses of action for achieving org. objectives and thus accomplishing org. purpose.

Front 50

What are the 4 tools that managers use to assist them in reaching org. objectives?

Back 50

1. Critical question analysis.
2. SWOT analysis.
3. Business portfolio analysis.
4. Porter's Model for Industry Analysis.

Front 51

Should managers use the the 4 strategy development tools in combination or alone?

Back 51

They are related but distinct, and should use the tool or combo of tools that seems most appropriate for them and their org.

Front 52

What is a synthesis of several managers ideas and suggestion that formulate org. stratergy?

Back 52

Critical Question Analysis

Front 53

What 4 questions does the Critical Question Analysis answer?

Back 53

1. What are the purposes and obj. of the org?
- the answer will tell management where the org. should be going.
2. Where is the organization presently going?
- answer to this can tell managers if the org. is achieving its goals, and if so, whether the level of progress is satisfactory.
3. In what kind of environment does the organization now exist?
- Both internal and external environments are covered in theis question. Any strategy formulated must deal with these factors.
4. What can be done to better achieve organizational objectives in the future?
- answer to this question that results in the strategy of the organization. Question should be answered only AFTER mananger have had an adequate opportunity to reflect on the answers to the previous 3 questions.

Front 54

What does the acronym SWOT stand for?

Back 54

S - Strengths
W - Weaknesses
O - Opportunities
T - Threats

Front 55

Describe SWOT analysis.

Back 55

A strategic developement tool that matches internal org. strengths and weaknesses with external orpportunities and threats. SWOT.

Front 56

SWOT analysis is based on what?

Back 56

Assumption that if managers carefully review such SWOT's a useful strategy for ensuring org. success will become evident to them.

Front 57

What is an org. strategy formulation tech. that is based on the philosophy that organizations shoul develop strategy much as they handle investment portfolios.

Back 57

Business Portfoilio Analysis

Front 58

What are the two business portfolio tools used?

Back 58

1. BCG Growth-Share Matrix
2. GE Multifactor Portfolio Matrix

Front 59

Who and what is the BCG Growth-Share Matrix?

Back 59

The Boston Consulting Group (BCG) Growth-Share Matrix is identifying the org.'s strategic business units (SBUs).

Front 60

What is an SBU?

Back 60

A Strategic Business Unit is a significant organization segment that is analyzed to develp org. strategy aimed at generating future business or revenue.

Front 61

SBU's vary drastically from company to company but what 4 characteristics does each have?

Back 61

1. It is a single business or collection of related businesses.
2. it has its own competitors.
3. it has a manager who is accountable for its operation.
4. it is an area that can be independently planned for within the org.

Front 62

What 3 ways does the mission statement help org. be successful?

Back 62

1. Helps management focus on human effort in a common direction.
2. Serves as a sound rationale for allocating resources. It gives managers guidelines about how to best use resources to accomplish org. purpose.
3. Helps management define broad but important job areas winthin an org. and thus critical jobs that must be accomplished.

Front 63

Is there a link between mission statement and objectives?

Back 63

Useful organizational ofjectives must reflect and flow naturally from an org. mission that, in turn, was designed to reflect and flow naturally from the results of an envronmental analysis.

Front 64

What is strategy formulation?

Back 64

It is the process of determining appropriate courses of action for achieving org. objectives and thus accomplishing org. purpose.

Front 65

What are the 4 tools that managers use to assist them in reaching org. objectives?

Back 65

1. Critical question analysis.
2. SWOT analysis.
3. Business portfolio analysis.
4. Porter's Model for Industry Analysis.

Front 66

Should managers use the the 4 strategy development tools in combination or alone?

Back 66

They are related but distinct, and should use the tool or combo of tools that seems most appropriate for them and their org.

Front 67

What is the next step after SBU's have been ID'd for a particular org.?

Back 67

Use the BCG Matrix to categorize each SBU within one of the 4 matrix quadrants.

Front 68

How are the 4 quadrants placed and horiz and vert marked?

Back 68

Vertical is Market Growth Rate and runs bottom low to upper high.
Horiz. I Relative Market Share and runs left high to right low.
Left upper - Stars
Right upper - Question Marks
Left Lower - Cash Cows
Right lower - dogs

Front 69

What are Star SBU's?

Back 69

They have a high share of a high-growth market and need large amounts of cash to support their rapid and significant growth. Generate lots of cash or org. and management can make additional investments and earn good returns.

Front 70

What are Cash Cow SBU's?

Back 70

A large share of a market that is growing only slightly. Provide a org. with lots of cash, but market not growing lots, cash generally meeting financial needs of org. in other areas, such as expanion of a STAR SBU.

Front 71

What are Question Mark SBU's?

Back 71

A small share of a high-growth market. It is uncertain if management should invest more cash in them to gain a larger share of the market or less or eliminate them.

Front 72

What are Dog SBU's?

Back 72

Have a small share of low-growth market. Barely suppot themselves and sometimes drain off cash resources from other SBU's.

Front 73

What matrix does not consider the factors such as:
1. types of risk associate with product developement.
2. Threats that inflation and other economic conditions can create in future.
3. Social, political, and ecological pressures.

Back 73

BCG Growth-Share Matrix.

Front 74

What populat portfolio analysis tool is based primarily on market attractiveness and business strengths?

Back 74

GE Multifactor Portfolio Matrix.

Front 75

Describe the GE Multifactor Portfolio Matrix.

Back 75

Each of the org.'s businesses or SBUs is plotted on a matrix in two dimensions: industry attractiveness and business strength.
Each of these two dimensions is actually a composite of a variety of factors that each firm must determine for itself, given its own unique situation.

Front 76

Who is Michael E. Porter?

Back 76

An internationally acclaimed strategic management expert.

Front 77

Who developed Porter's Model for Industry Analysis?

Back 77

Michael E. Porter

Front 78

What is the best-known tool for formulating strategy?

Back 78

Porter's Model for Industry Analysis

Front 79

What is Porter's model for industry analysis?

Back 79

Porter's model outlines the primary forces that determine competitiveness within an industry and illustrates how those forces are related.

Front 80

What does Porter's model for industry analysis suggest?

Back 80

That in order to develop effective organizational strategies, managers must understand and react to those forces within an industry that derermine an organization's level of competitiveness within that industry.

Front 81

According to Porter's model, competitiveness within an industry is determined how?

Back 81

- New entrants or companies with the industry.
-Products that might act as a substitute for goods or services that companies within the industry produce.
- the ability of suppliers to control issues like costs of materials that industry companies use to manufacture their products.
- the bargaining power that buyers possess within the industry.
- the general level of rivalry or competition amond firms within the industry.

Front 82

According to this model buyers, product substitutes, suppliers, and potential new companies within an industry all contribute to the level of rivalry among industry firms.

Back 82

Porter's Model of Industry Analysis

Front 83

Who has developed 3 generic strategies to illustrate the kind of strategies managers might develop to make their org. more competitive?

Back 83

Porter

Front 84

What are the 3 basic strategies Porter has developed for strategy formulation?

Back 84

1. Differentiation.
2. Cost leadership
3. Focus

Front 85

What is differentiation?

Back 85

1st of Porter's strategies, focuses on making an org. more competitive by developing a product that customers perceive as being different from products offered by competitors. Uniqueness in areas such as quality, design, level of after-sale service.

Front 86

What is cost leadership?

Back 86

2nd of Porter's strategies that focuses on making an org. more competitive by producing products more cheaply than competitors can. Getting parts cheaper can lower prices for products so can sell finished goods cheaper...

Front 87

What is Focus?

Back 87

Porter's 3rd strategy that emphasizes making an org. more competitive by targeting a particular customer. Mags commonly use this, such as Working Woman and Ebony.

Front 88

What are the 4 common org.strategies that evolve from applying one or more of the strategy tools - critical question anaylsis, SWOT,Business portfolio analysis, and Porter's model?

Back 88

1. Growth
2. Stability
3. Retrenchment
4. Divestiture

Front 89

What is growth?

Back 89

A strategy adopted by management to increase the amount of business that an SBU is currently generating.

Front 90

Which type of SBUs is growth strategy usally applied to?

Back 90

Star SBUs or question mark SBUs that have the potential to become starts.

Front 91

What is stability?

Back 91

Strategy adopted by management to maintain or impove slightly the amount of business that an SBU is generating.

Front 92

Which type of SBU is stability applied to?

Back 92

Cash cows since these SBUs are already in an advantageous position.

Front 93

What is retrenchment?

Back 93

Management attempts to strengthen or protect the amount of business an SBU is generating.

Front 94

Which type of SBU is retrenchment applied to?

Back 94

Cash cows or stars that are beginning to lose market share.

Front 95

What is divestiture?

Back 95

A strategy adopted to eliminate an SBU that is not generating a satisfactory amount of business and that has little hope of doing so in the near future.

Front 96

Which type of SBU is Divestiture applied to?

Back 96

Dogs or question marks that have failed to increase market share but still require lots of cash.

Front 97

What is the 4th step of the strategy management process?

Back 97

Strategy implementation

Front 98

What 4 basic skills are necessary to successfully implement strategy?

Back 98

1. Interacting skill.
2. Allocating skill.
3. Monitoring skill.
4. Organizing skill.

Front 99

What is the ability to manage people during implementation and are managers who are able to understand the fears and frustrations others feel during the implementation of new strategies?

Back 99

Interacting skill

Front 100

What is the Allocating skill?

Back 100

The ability to provide the org. resources necessary to implement a strategy. These people are talented at sked. jobs, budgeting time & money, and allocating other resources that are critical for implementation.

Front 101

What skill sets up good feedback systems that continually tell them about the status of strategy implementation?

Back 101

Monitoring skill

Front 102

What is organizing skill?

Back 102

Ability to create throughout the org. a network of people who can help solve problems as they occur.

Front 103

Strategic Control is the last step of strategy managemnt process and consists of?

Back 103

Monitoring and evaluating the strategy management process as a whole to ensure that it is operating properly.

Front 104

What does strategic control focus on?

Back 104

Activities involved in environmental analysis, org. direction, strategy formulation, strategy implementation, and strategic control itself- checking that all steps of the strategy management process are appropriate, compatible, and functioning properly.

Front 105

Define tactical planning.

Back 105

Short-range planning that emphasizes the current ops of various parts of the org.

Front 106

What is defined as a period of time from 1 year or less?

Back 106

Short range

Front 107

What type plans are used the the areas of production, marketing, finance, personnel, and plant facilities?

Back 107

Tactical plans

Front 108

Day-to-day ops is understood better by ______-_____ managers. So _______ plans are better developed by these managers.

Back 108

lower-level managers.
tactical

Front 109

Because _____-_____ managers have a better understanding of the org as a whole, these type plans - _________ - are made by these managers.

Back 109

upper-lever
strategic

Front 110

Strategic planning emphasizes analyzing the ______.

Back 110

Future.

Front 111

Tactical planning emphasizes analyzing the ________ functions of the org.

Back 111

Everyday.

Front 112

Are strategic plans harder to gather facts on then tactical plans? T/F

Back 112

T

Front 113

Strategic plans are based primarily on a prediction of the ______.

Back 113

Future.

Front 114

Tactical plans are based primarily on known _____________ that exist within the org.

Back 114

Circumstances.

Front 115

Which plans are generally less detailed? Strategic or Tactical plans?

Back 115

Strategic

Front 116

Strategic planning covers ____ term.
Tactical planning covers _____ term.

Back 116

Long.
Short.

Front 117

Does time spent planning vary by level of management?

Back 117

Yes

Front 118

Lower-level management are short term planning and spend more time involved in?

Back 118

Everyday operations of the org. and therefore have less time to contribute to planning than top managers do.

Front 119

Strategic planning emphasizes analyzing the ______.

Back 119

Future.

Front 120

Tactical planning emphasizes analyzing the ________ functions of the org.

Back 120

Everyday.

Front 121

Are strategic plans harder to gather facts on then tactical plans? T/F

Back 121

T

Front 122

Strategic plans are based primarily on a prediction of the ______.

Back 122

Future.

Front 123

Tactical plans are based primarily on known _____________ that exist within the org.

Back 123

Circumstances.

Front 124

Does time spent planning vary by level of management?

Back 124

Yes

Front 125

Why do lower-level managers spend the least amount of time in planning?

Back 125

They spend the most amount of time of time highly involved in the everyday ops of the org.

Front 126

Upper-level managers usually have the best understanding of the whole org.situation and are better equipped to plan for what?

Back 126

The long term - or to develop strategic plans.