Strategic Planning

Question 1

Strategic planning

Answer 1

Procedures organizations use in making decisions about long-term goals and strategies

Question 2

The three planning levels

Answer 2

Strategic (Top)
Tactical (Middle)
Operational (Frontline)
Correspond with the three major management levels.

Question 2

General decision making stages

Answer 2

(1) Identifying and diagnosing the problem
(2) Generating alternative solutions
(3) Evaluating alternatives
(4) Making the choice
(5) Implementing
(6) Evaluating

Question 3

Strategic Management

Answer 3

The process of setting goals, procecures, and objectives in order to make a company more competitive

Question 4

Steps for strategic management

Answer 4

(1) Establish the mission, vision, and goals
(2) Analysis of internal strength and weaknesses and then external opportunities and threats
(3) strategy formulation
(4) Implementation
(5) Control

Question 5

Mission

Answer 5

An explanation of the basic purpose

Question 6

Vision

Answer 6

The future, where the organization is headed

Question 7

Business strategies

Answer 7

Low-cost
Differentiation

Question 8

Low cost

Answer 8

Strategy focuses on a standardized product, its goal is to be a low price leader

Question 9

Differentiation

Answer 9

Strategy focuses on a more customized product that competitors are unable or unwilling to match, its goal is to be unique

Question 10

Core competencies

Answer 10

Unique combination of skills, knowledge, and resources than an organization possess. It gives them an edge over the competition

Question 11

Benchmarking

Answer 11

Trying to determine what are the best practices in the industry

Question 12

Value chain

Answer 12

Value chain is the sequence of activities that flow from raw materials to the delivery of goods or service

Question 13

Value chain activities

Answer 13

-Research and development focus on innovation and new products
-Inbound logistics revecive and store raw materials and distribute them to operations
-Operations transform raw materials into final products
-Outbound logistics warehouse the product and handle its distribution
- Marketing and sales identify customer requirements and get customers to purchase the product
- Service offers customer support

Question 14

The competitive environment - Porter’s 5 forces

Answer 14

1- Rival firms - these are current firms in an industry
2- New entrants - new competitors
3- Customers - can decide where to spend their money
4- Substitutes/ complements - customers can use alternative and complementary products
5-Suppliers - can affect firms in many ways such as in switching costs

Question 15

Strategy Implementation

Answer 15

-Define strategic tasks
-Assess organization capabilities
-Develop an implementation agenda
-Create an implementation plan

Question 16

Strategic control

Answer 16

Making sure that what you expected is happening