Chapter 4: Planning and Strategic Management

Question 1

Situational Analysis

Answer 1

where planning begins; relevant information is gathered, interpreted and summarized for the issue at hand.

Question 2

Goals

Answer 2

targets or ends the manager wants to reach

Question 3

S.M.A.R.T.

Answer 3

goals that have specific qualities; Specific, Measurable, Attainable, Relevant, Time-Bound

Question 4

Plans

Answer 4

actions or means the manager intends to use to achieve goals

Question 5

Strategic Planning

Answer 5

making decisions about the organization’s long-term goals and strategies.

Question 6

Strategic Goals

Answer 6

major targets or results that relate to the long-term survival, value, and growth of the organization.

Question 7

Strategy

Answer 7

pattern of actions and resource allocations designed to achieve the goals of the organization.

Question 8

Tactical Planning

Answer 8

translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization, often a functional area like marketing or human resources.

Question 9

Operational Planning

Answer 9

identifies the specific procedures and processes required at lower levels of the organization.

Question 10

Strategy Map

Answer 10

provides a tool managers can use to communicate their strategic goals and enable members of the organization at every level to understand the parts they play in helping to achieve them.

Question 11

Strategic Management

Answer 11

involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.

Question 12

Six Steps of Strategic Management

Answer 12

1. establishment of mission, vision, and goals
2. analysis of external opportunities and threats
3. analysis of internal strengths and weaknesses
4. SWOT (strengths, weaknesses, opportunities, threats) analysis, and strategy formulation
5. strategy implementation
6. strategic control

Question 13

Mission

Answer 13

a clear and concise expression of the basic purpose of the organization

Question 14

Strategic vision

Answer 14

points to the future; provides a perspective on where the organization is headed and what it can become

Question 15

Stakeholders

Answer 15

groups and individuals who affect and are affected by the achievement of the organization’s mission, goals and strategies.

Question 16

Resources

Answer 16

inputs to production that can be accumulated over time to enhance performance of a firm.

Question 17

Core capability

Answer 17

aka competence; something a company does especially well relative to its competitors

Question 18

Benchmarking

Answer 18

process of assessing how well one company’s basic functions and skills compare with those of another company or set of companies.

Question 19

Corporate strategy

Answer 19

identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses.

Question 20

Concentration strategy

Answer 20

focuses on a single business competing in a single industry.

Question 21

vertical integration

Answer 21

involves expanding the domain of the organization into supply channels or distributors

Question 22

concentric diversification

Answer 22

involves moving into new businesses that are related to the company’s original core business.

Question 23

conglomerate diversification

Answer 23

corporate strategy that involves expansion into unrelated businesses.

Question 24

business strategy

Answer 24

defines the major actions by which an organization builds and strengthens its competitive position in the marketplace

Question 25

low-cost strategies

Answer 25

businesses that attempt to be efficient and offer a standard, no-frills product

Question 26

differentiation strategy

Answer 26

company attempts to be unique in its industry or market segment along some dimension that customers value.

Question 27

functional strategies

Answer 27

implemented by each functional area of the organization to support business strategy

Question 28

strategic control system

Answer 28

designed to support managers in evaluating the organization’s progress with its strategy and, when discrepancies exist, taking corrective action.