Management Chapter 4 Flashcards
What is strategy?
Strategy is a plan of an organization on how it intends to compete and win in its market place. Strategy is definitive tool for building and maintaining the direction of the business.
What is the intention of strategy?
The intention of strategy is to take basic ideas of business and express them in operational terms.
What questions do you ask on overseeing strategy?
Questions we ask overseeing strategy is what the desired destination organization wants to get to, what is the path or plan of them getting there, and what are the signs that they are getting there.
What are the strategy components?
- Goals: what are the goals of the business
- Product market focus: what product or services does business sell and to what market
- Value Proposition: How does business intend to attract customers
- Core activities: what does business plan to do to add value
What is the role of strategy?
Strategy plan is a tool used by mangers to set goals and track progress of an buisness and see if it’s going in right direction. Two Examples are:
1. Hub for analysis: what an organization is about
2. Link to action: what needs to be done
What is the strategy in a single business?
It is a strategic buisness unit in a large corporation who sell to an identifiable group of customers.
What is business strategy?
Buisness strategy is how to create value in a particular line of business. They think how to compete within the industry
What is corporate strategy?
Corporate strategy deals with portfolio of business strategies and how they relate to each other. They think of which industries to compete in.
What is the definition of goals and what are it’s types?
Goals: are what a business intends to achieve. Two types of goals are:
1. Hard goals: focuses on aim and performance of the business. Examples are probability, market position and growth.
2. Soft goals: targets the social conduct of the business. Examples are employees and society.
What is goal structure?
Goal structure represents the important aims of the business. The goals must be placed in order of priority or what we know as goal structure.
How can the goals be described using strategy?
Goals can be described using strategy as:
1. Growth strategy: it shows priority to market and plant to grow the business.
2. Harvest Strategy: it has a stingy approach towards investment and spending is priority
3. Divest: it prioritizes actions that prepare the sale of the business.
How does goals and competitive advantage relate to each other?
Companies can use goals to distinct themselves from their competitors. For example be more aggressive or take greater risks.
What is product market focus and some of it’s types?
Product market focus are goods and services business intend to offer. Some types are:
1. Downstream: focusing on customers
2. Upstream: focusing on resources and selling them
How does product market focus and competitive advantage related?
This means to concentrate on product market where competitors are weak or simply uninterested.
What is Value position and it’s strategies?
Value proposition is what a business offers that is different than what other offer. Strategies like:
- Low cost: providing products/services at a lower cost then your competitors.
- Differentiation: is quality or service that makes the product different then what your competitors offer.