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MGT 8803 > Business Strategy Week 1 > Flashcards

Business Strategy Week 1 Flashcards

(63 cards)

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1
Q

Why is planning important?

A

-gives direction and coordinates everyone in the org
-helps minimize waste and redundancy
-reduces uncertainty by understanding firms external environment
-establishes goals from the firm to the individual
-involves everyone (higher job satisfaction)

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2
Q

What does planning context include?

A

Includes external and internal environment ( managements vision, culture technology, ip)

-general environmental factors
-communities
-suppliers
-customers
-partners and shareholders
-regulators
-competitors

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3
Q

Hierarchy of plans

A

managements plans filter down through strategic, tactical and operational plans.

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4
Q

what is managements main task?

A

planning in managing the firm

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5
Q

the role of planning in managing the firm-planning

A

-defining goals, establishing strategy, developing plans to coordinate activities.

types - strategic, functional tactical

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6
Q

the role of planning in managing the firm-organizing and staffing

A

-determining who what when and where of tasks
-how they’re groups
-who reports to whom
-who makes decisions

-also recruiting, selecting, training and performance evaluation

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7
Q

the role of planning in managing the firm-what is the primary role of management?

A

planning

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8
Q

the role of planning in managing the firm- controlling

A

process of monitoring performance, comparing it with goals and correcting deviations

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9
Q

What is the purpose of strategic plans?

A

broadly guiding and positioning the firm relative to the competition;

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10
Q

functional plans

A

that align the goals and direct the strategic activities of the operating units

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11
Q

tactical/operational

A

plans that specify the details of how the operational goals will be achieved

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12
Q

residual uncertainty

A

uncertainty that remains even after planning

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13
Q

planning through the hierarchy?? need to look this up in the lecture notes

A

-functional structure
-divisional structure

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14
Q

functional plans

A

-business unit level planning
-interrelated across sbu
-shorter planning horizons than corporate and sbu plans but extend beyond fiscal year
-drive budget development and staffing plans
-ex: marketing plans, production plans, capacity plans

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15
Q

what does sbu mean?

A

strategic business unit

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16
Q

tactical/ operational plans

A

-narrow and specific
-allocation of resources to specific tasks
-short planning horizons (timesframes)
ex:
financial budgets
production schedules
staffing schedules
project work plans
more

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17
Q

heirarchical vs flat organizations? which org is more effective in stable and which in dynamic environments?

A

hierarchical organizations have many levels of managers reporting to managers and tend to be effective in stable environments

flat organizations have fewer levels of middle management. they are more effective in dynamic environemnts because decision making is delegated into operating areas

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18
Q

types of managers

A

-senior managers
-middle managers
-supervisors
-sometimes team leaders

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19
Q

types of strategic plans

A

-corporate
-business unit
-functional

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20
Q

competitive parity

A

when firms perform at the same level

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21
Q

competitive disadvantage

A

underperformance realtive to other firms and below industry average

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22
Q

competitive advantage

A

better performance than competitiors in the same industry or industry average
-always relative to competitors

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23
Q

what is business strategy?

A

goal directed actions a firm takes to get better performance than competitors. good strategy enables superior performance

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24
Q

Elements of a Good Business Strategy - competitive challenge

A

basically the challenge a firm must overcome in order to be competitive

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25
Elements of a Good Business Strategy - guiding policy
or strategic commitment. specific things that you want to do to achieve a competitive advantage
26
Elements of a Good Business Strategy - coherent actions
set of steps taken to address obstacles to competitive advantage
27
how do goals flow through the organization in traditional goal setting
from the top down
28
How should goals be set?
using S.M.A.R.T. - specific measurable achievable and time bound Specific-written in terms of outcomes rather than actions or processes Measurable and quatifiable Attainable - challenging but attainable Relevant- relevant to the situation Time frames - clear timeframes
29
porter vs mintzberg
porter - more methodical and deliberate mintzberg - strategy emerges overtime as strategic intentions collide with changing market conditions
30
create competitive advantage - cost leadership
being the lowest cost producer in an industry typically produce standardized products and focus on operational excellence win with price sensitive customers
31
create competitive advantage - differentiation
having a unique product in a broad market -can charge a premium if it creates value
32
create competitive advantage - focus strategy
establish cost leadership or differentiation competitive advantage but focused on a narrow market segment -niche markets can be a good opportunity for this -- can you cater to a specific group enough to charge a premium price
33
managements vision
managements vision for what the organization will look like in the future A well crafted vision will be aspirational, motivational; will stretch the capabilities of the organization and create meaningful long term goals
34
mission statement
-what does the organization do -how does the org do things -what is the commitment to key stakeholders -what are the core values -real - not hype
35
criteria for effective vision and mission
-supplement vision with actionable picture of future business -act out the vision mission and core values in everyday behavior -back up vision and mission with strategic commitments -use vision and mission to shape strategy
36
core values
-guiding principles of the firm -support companies vision, shape culture and reflect companies identity and personality
37
vision statement
-exteranally facing and intended for consumption -concise aspirational and gives a sense of purpose -more focused on inspiring than driving strategic goals
38
vision statement vs mission statement
vision - aspirations mission - how the org intends to accomplish vision
39
business model framework ( 3 value)
how the components of a business fit together to make a profit -value delivery -values creation -value capture
40
business model framework -value delivery
component of business model that is customer facing. we need to deliver value to the customer
41
business model framework -value creation
focuses on business operations-- how the firm creates value and supports the products and services in a post sales environment -core competencies
42
Strategic Resources
resources important to firms competitive advantages
43
common revenue models
retail transaction rental/lease usage advertising and sponsorships affiliate marketing brokerage subscription/membership licensing
44
technology fueled new revenue models
-transitioning revenue models -=data driven revenue models -e-commerce
45
business model - economic model
defines the economic logic that is, how the firm captures value. It is comprised of the methods for generating revenues and the cost incurred to capture those revenues.
46
value capture
describes how the firm captures the value it is created and delivered -revenues and expenses -capital requirements and cost structures
47
cost leader strategy
outsourcing non-core activities being efficient lowest costs in industry focused on broad market
48
differentiation strategy
high quality inputs and outputs product innovation and performance higher costs overall
49
focus strategy
focus on catering to niche markets should also differentiate or cost leader focus focus on unserved or underserved markets ex: store for left handers
50
traditional top down approach to process models
analysis -> formulate -> implement (afi framework)
51
analysis - external analysis
environmental trends and actions of industry players that impact the firm’s markets and operations
52
strategic management process- internal analysis
he firms resources and business model and fit to the evolving environmental conditions and competitor strategies
53
strategic management process- swot
strengths/weaknesses/ opportunities/threats framework to formulate business strategies
54
strategic management process- formulation
creation of business processes based on analysis? -- need to fix This activity involves the development of business cases that lay out the economic and strategic reasons for pursuing a particular strategic initiative
55
strategic management process - implementation
doing the plans you've formulated based on your analysis -the action stage of the strategic management process
56
limitations of top down approach
-assumes future can be accurately predicted (extrapolation) -based on centralization of authority and decision making with senior management
57
afi framework most common approaches
* traditional, conventional top down approach to strategy development; * scenario-based planning, and * strategy as planned emergence.
58
3 levels of characterizing knowledge and uncertainty
-things we know are true with high degree of probability -things we can learn with research -things we are unlikely to be able to learn even with research
59
levels of (residual) uncertainty
1 - clear enough future 2 - alternative but well definable futures ( usually choice between 2 futures) 3 - range of potential futures 4 - true ambiguity
60
residual uncertainty
things that are unknowable
61
scenario based strategy planning
think through multiple scenarios to help you develop a plan. used when data is limited or uncertain
62
scenario based planning steps
set the planning scope - frame key issues and establish the horizon identify key environmental factors that will shape the firms future select 2-3 key variables and formulate a set of possible outcomes based on them create teams to "flesh out" each scenario pick a dominant scenario and create trigger points for alternative scenarios w/ contingency plans
63

MGT 8803 (11 decks)

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