Marketing Strategy Exam Ii

Front 1

Strategy Formulation

Back 1

positioning forces before the action, effectiveness, intellectual, and requires few people with good intuitive and analytical skills (think consulting group) outlining the essay

Front 2

Strategy Implementation

Back 2

managing forces during the action, efficiency, operational and require the coordination of many people with an emphasis on motivation and leadership skills. (Dividional or Functional Managers) writing the essay

Front 3

Management Issues Central to Strategy Implementation

Back 3

Must be a way to make the average succeed. Annual objectives, alter the existing organizational structure if necessary, match managers to strategy, adapt existing production, develop an effective HR function, do a cost effectiveness, and link performance with pay.

Front 4

Annual Objectives (4)

Back 4

Determine what is and isn't important, allows you to allocate your resources well, evaluate management, monitor progressm and estabilish priorities. (priorities, progress, management, resources)

Front 5

Four types of Resources you can allocate to

Back 5

Financial, Physical, Human, Technological (time links to priorities)

Front 6

Managing Conflict

Back 6

Conflict isn't necessarily bad, schedule "work out sessions" because a lack of conflict could signal apathy. Opposing groups can get energized and could help managers identify problems.

Front 7

Three approaches to managing and resolving conflict

Back 7

Avoidance (not often a good idea), Defusion (delegate issues), Confrontation (creative competition)

Front 8

Do changes in strategy lead to changes in organizational structure?

Back 8

Yes

Front 9

Structure does not dictate how objectives and resources are established / allocated.

Back 9

No

Front 10

Chandler's Strategy-Structure Relationship

Back 10

New Strategy is Formulated -- New administrative problems emerge. -- Organizational performance declines. -- New organizational structure is established. -- Organizational performance improves.

Front 11

Four forms of structure

Back 11

Functional Structure, Divisional Structure, Strategic Business Unit Structure (SBU), Matrix Structure

Front 12

Functional Structure

Back 12

Group tasks and activities by business function. (HR, Finance, Marketing, etc.)

Front 13

Advantages of Functional Structure

Back 13

Simple, inexpensive, capitalizes on specialization of business, no need for elaborate control system, and allows of rapid decision making

Front 14

Disadvantages of Functional Structure

Back 14

Accountability forced to the top, delegation not encouraged, minimizes career development, low morale, inadequate planning for products and markets, leads to short-term thinking, and leads to communication problems.

Front 15

Divisional Structure can be divided in one of four ways:

Back 15

Geographic Area, Product or Service, Customer, or Process.

Front 16

Advantages of Divisional Structure

Back 16

Accountability is clear and allows for local control, creates career development chances, promotes delegation, leads to competitive climate internally, allows easy adding new products or region, strict control and attention to products

Front 17

Disadvantages of Divisional Structure

Back 17

Can be costly, duplicates functional activities, requires a skilled management force, requires an elaborate control system, competition among divisions can become to intense its dysfunctional, can limit sharing of ideas, and some may receive special treatment.

Front 18

Strategic Business Unit Structure (SBU)

Back 18

Group similar divisions into strategic business units and delgate authority and responsibility for each unit to a senior executive who reports directly to the chief executive officer.

Front 19

Matrix Structure

Back 19

The most complex of all designs because it depends upon both vertical and horizontal flows of authority and communication

Front 20

Advantages of Matrix Structure

Back 20

Project objectives are clear, employees can see the result of their work, shutting down a project is easy, facilitates use of personnel / facilities, functional resources are shared instead of duplicated as in a divisional structure.

Front 21

Disadvantages of Matrix Structure

Back 21

Requires excellent vertical / horizontal flows, costly because creates more manager positions, violates unity of command principle, creates dual lines of budget authority / rewarding, shared authority, require mutual trust and understanding.

Front 22

Three other names of restructuring

Back 22

downsizing, rightsizing, delayering

Front 23

How do you manage resistance to change?

Back 23

Force change strategy, educative change strategy, and rational / self-interest change strategy

Front 24

Creating a Strategy-Supportive Culture

Back 24

1. Formal statements of organization philosophy, 2. Design of physical spaces, 3. Deliberate role modeling, teaching, and coaching, 4. Explicit reward and status system, 5. Stories, legends, myths, and parables; 6. What leaders pay attention to, 7. Leader reactions to critical incidents and crises; 8. organizational design and structure; 9. organizational systems and procedures; 10. Criteria for recruitment, selection, promotion, leveling off, retirement and excommunication of people.

Front 25

Production processes typically constitute more than 70% of a firm's total assets

Back 25

True

Front 26

Production / Operations Decision Examples

Back 26

Plant size, inventory, quality control, cost control, technological innovation.

Front 27

Fundamental Strategy Concerns

Back 27

Do I have the right people in the right places in the organization to optimize my use of scarcity in resources and accomplish my fundamental strategic objectives? If not, what and who has to change by when? What stays the same?

Front 28

4 Basis of Market Segmentation

Back 28

Geographic, Demographic, Psychographic, Behavioral

Front 29

Product Positioning

Back 29

Schematic representations that reflect how products / services compare to competitors' on dimension most important to success in the industry

Front 30

How do you do product positioning?

Back 30

Select key criteria, plot the map, plot the competitors, look for niches, and develop the marketing plan.

Front 31

What are some Finance / Accounting Issues?

Back 31

Look at Powerpoints

Front 32

Why is evaluating worth of a business important?

Back 32

It's central to strategy implementation because it lends itself to integrative, intensive, and diversification strategies often implemented through acquisitions of other firms

Front 33

Three basic approaches of measuring a firm's worth

Back 33

1. What a firm owns, 2. What a firm earns, 3. What a firm will bring in the market

Front 34

What measurements can you use to measure a firm's worth?

Back 34

net worth / stockholder's equity, net profit (conservative value would be five times the firm's current annual profits), price-earnings ratio method, outstanding shares method

Front 35

What are you some constraints of research and development issues?

Back 35

resource availability and technological improvements that shorten product life cycles.

Front 36

Three major R&D approaches to implementing strategies

Back 36

1. first firm to market new technological products, 2. innovative imitator of successful products, 3. low-cost producer of similar but less expensive products

Front 37

Is MIS (management information system) important?

Back 37

It may be the most important factor in differentiating successful and unsuccessful firms.

Front 38

What makes an MIS effective?

Back 38

information collection, retrieval, and storage; keeping managers informed; coordination of activities among divisions, and allows firm to reduce costs.

Front 39

10 Commandments of Jobs

Back 39

go for perfect, tap the experts, be ruthless, shun focus groups, never stop studying, simplify, keep your secrets, keep teems small, use more carrot than stick (enthusiasm), and prototype to the extreme.

Front 40

Explain Netflix's strategic miscalculations

Back 40

Failed in communicating why the change (WIFM), the power of suppliers, marketing has become interactive, strategies need to be dynamic

Front 41

Why do strategy review, evaluation and control?

Back 41

Strategies become obsolete, external and internal factors change.

Front 42

What is Strategy Evaluation

Back 42

vital, alerts management to problems in a timely fashion, and catches erroneous strategic decisions that can have severe negative impact on organizations (Netflix).

Front 43

Explain what strategy review, evaluation, and control is as its practiced.

Back 43

1. examine the underlying bases of strategy (do my assumptions will apply?), 2. Compare expected to actual results (change in assets, profitability, sales, productivity, profit margins, ROI, etc.?), 3. Take corrective actions to ensure that performance conforms to plans.

Front 44

Rumelt's 4 Criteria

Back 44

1. Consistency (Are we all still in agreement?), 2. Consonance (Trend Analysis), 3. Feasibility (Do we still have the resources), 4. Advantage

Front 45

Difficulties in Strategy Evaluation

Back 45

rate of obsolescence of plans, domestic / global events, decreasing time span for planning certainty (some markets morph quicker than others)

Front 46

Weaknesses of Strategy Evaluation?

Back 46

Is complex, sensitive, and can be overemphasized.

Front 47

Strategy Evaluation should…

Back 47

Question expectations / assumptions, review objectives and vlues, stimulate creative alternatives / criteria for evaluation

Front 48

How do you review the underlying bases of strategy?

Back 48

develop a revised IFE and EFE Matrix.

Front 49

How do you review the effectiveness of strategy? (8)

Back 49

Competitors' reaction, competitors' strategy change, competitors' changes in strengths & weaknesses, reasons for competitors' strategic change, reasons for successful strategies, satisfaction with present market positions / profitability, potential competitor retaliation, and potential cooperation with competitors

Front 50

Strategy-Evaluation Assessment Matrix

Back 50

Only if there have been no major changes in either the firm's internal strategic position and external strategic position, and if the firm has progressed toward achieving its stated objectives, should you continue the present strategic course.

Front 51

How to measure organizational performance:

Back 51

compare expected and actual results, investigate deviations, evaluate individuals, and examine progress.

Front 52

When evaluating, keep a balanced scorecard. What does this mean?

Back 52

4 perspectives: financial performance, customer knowledge, internal business processes, and learning / growth

Front 53

Characteristics of an Effective Evaluation System (5)

Back 53

economical, meaningful, useful, timely, and accurate.

Front 54

Contingency Planning

Back 54

Alternative plans that can be put into effect if certain key events do not occur as expected

Front 55

What is social responsibility and businesses role in it?

Front 56

What is sustainability?

Back 56

The process of meeting present needs without compromising the ability of future generations to meet their needs.

Front 57

Types of sustainability (3)

Back 57

Environment, Social, & Economic

Front 58

Environmental Sustainability

Back 58

preservation of environmental resources and biodiversity, creation of sustainable access to safe drinking water and enhancing the quality of life among the most impoverished

Front 59

Social Sustainability

Back 59

improvement of daily life for the greatest number of people through fair income distribution, gender equality, access to land, education, healthcare, etc.

Front 60

Economic Sustainability

Back 60

capacity of the economy to regularly produce outcomes consistent with long term development

Front 61

Why has sustainability gotten more traction today?

Back 61

there's an economic interdependence that is only increased by technology and with the continuing industrailization, there are limited resources. Plus, there's a climate change.

Front 62

Why bother having ethics?

Back 62

Helps manage strategies, aids recruitment, makes decisions, limits the legal ramifications of your decisions, and creates a reservoir of goodwill.

Front 63

What are some global considerations of ethics?

Back 63

They're different depending on where you are. For example, bribery is okay in some cultures. There's a diversity of values.

Front 64

Some green companies include

Back 64

HP (reduction of green house gases in supply chain), Dell (headquarters 100% renewable energy), Intel (largest corporate purchaser of renewable energy), IBM (reducing carbon waste).

Front 65

How can you tell if you're moral?

Back 65

Start with this: Do you like and respect who you see in the mirror?

Front 66

Do global considerations impact strategic decisions?

Back 66

Yes

Front 67

Can a firm survive on domestic markets?

Back 67

It's difficult

Front 68

List some variables that international firms must deal with:

Back 68

Social, cultural, demographic, environmental, political, governmental, lega, technological, and competitive opporunities / threats

Front 69

10 Potential Advantages of International Operations

Back 69

1. Gain new customers, 2. Absorb excess capacity, 3. low-cost production facilities, 4. competition may be less intense, 5. products and services in different stages of market development, 6. reduced tariffs, lower taxes, and favorable political treatment, 7. joint ventures can enable firms to learn new tech, culture, and business practices, 8. economies of scale, 9. power and prestige in domestic arkets may be enhanced, 10. change competitive environment

Front 70

6 Potential Disadvantages of International Operations

Back 70

Political unrest (could be seized), different and oftentimes little-understood forces, weakness of competitors overestimated, different language / value system, understanding of regional organizations needed, dealing with two or more money systems.

Front 71

What's "The Global Challenge"?

Back 71

How to gain and maintain exports to other nations and, How to defend domestic markets against imported goods. (Extend out, Protect in)

Front 72

What are some changes in the global economy?

Back 72

markets are shifting and converging, innovative transport systems are acceleratng transfer of technology, nature and location of production systems are shifting

Front 73

International Protectionism

Back 73

Countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people

Front 74

Reasons for Global Expansion (4)

Back 74

advancements in telecommunications, growth of demand Is larger outside the US, 95% of the world's population lives outside the US, and there's a developing comfort with diversity.

Front 75

What stages do you need to consider global needs during?

Back 75

Design (cars on the right side, etc.), Production, and Marketing

Front 76

Recession (definition)

Back 76

two consecutive quarters of a decline in real gross domestic product

Front 77

List some differentiating factors within cultural differences.

Back 77

Time, space, family roles, religious factors, family time, values, eating, rules of etiquette, and importance of relationships.

Front 78

What are European business cultural factors?

Back 78

1. participatory management, 2. workers are unionized, 3. frequent vacations and holidays, 4. guaranteed permanent employment is common, 5. workers often resent pay for performance, commissions, and objective measurement systems.

Front 79

What are Asian business cultural factors?

Back 79

1. First names aren't used in business, 2. extended periods of silence are important, 3. a sale is the beginning, not the end, of a relationship (CRM), 4. resting, listening, meditating and thinking are considered productive.

Front 80

What are Mexican business cultural factors?

Back 80

1. low tolerance for friction, 2. paternalistic employers, 3. no self-expression or initiative at work, 4. stressed collectivism, formality, and doing what you're told, 5. rarely entertain business associates at home, 6. preserving honor is important, 7. opinions are back talk, 8. supervisors are weak if they explain decision rationale, 9. don't follow rules, 10. tardiness is common.

Front 81

What are Japanese business cultural factors?

Back 81

1. "Wa" emphasizes group loyalty and consensus, 2. constant discussion and compromise, 3. silence is a plus in formal meetings, 4. when confronted and disturbed, managers often remain silent, 5. managers are reserved, quiet, introspective and other-oriented.

Front 82

T/F: Italians, Germans, and French soften up executives with praise before a criticism.

Back 82

False

Front 83

T/F: Israelis are particularly accustomed to fast paced meetings.

Back 83

True

Front 84

T/F: British executives complain that Americans don't chatter enough.

Back 84

False

Front 85

T/F: Europeans feel that they are being treated like children when asked to wear nametags.

Back 85

True

Front 86

T/F: Executives in India never interrupt each other.

Back 86

False

Front 87

T/F: "How was your weekend" is considered polite by many business people.

Back 87

False, it's intrusive.

Front 88

What countries have the highest tax rates?

Back 88

US and Japan at 38%

Front 89

What countries have the lowest tax rates?

Back 89

Ireland and former Soviet-Bloc nations at near 0%

Front 90

What is India's economic state looking like?

Back 90

Debt is 80% of their GDP, there's a widening gap between rich and poor, but the middle class is growing.

Front 91

Joint Ventures in India

Back 91

they're mandatory for foreign companies doing business in India; foreign firms are restricted to 74% ownership of India-based firms, and most joint ventures in India fail.