Chapter 2 Strategic Planning

Question 1

Value Proposition

Answer 1

• 30 second elevator speech
• A statement that summarizes the key benefits or value for target customers.
• explains why customers should buy a product
• why stakeholders should donate
• why prospective employees may want to work for an organization.

Question 2

Corporate Level Plans

Answer 2

• plans developed for the corporation as a whole take place at the corporate level.

Question 3

Strategic Business Unit (SBU)

Answer 3

• business or product lines w/in an organization that have their own competitors, customers, & profit centers.

Question 4

Business Level Plans

Answer 4

• plans developed for each strategic business unit typically have their own mission statement.

Question 5

First-mover Strategy

Answer 5

• Corporate level strategy theorizing that being the first organization to offer a product in the marketplace w/be the long-term market leader.

Question 6

Second-mover Strategy

Answer 6

• Corporate level strategy theorizing that closely observing the innovations of the first movers, & improving on them can help an organization gain advantage in the market place.

Question 7

Strategic Planning Process

Answer 7

• Including conduction a situation analysis & developing the organizations mission statement, objectives, l\value proposition, & Strategies.
• helps an organization allocate its resources under different conditions to accomplish its objectives, deliver value, & be competitive in a market-driven economy.

Question 8

Situation Analysis

Answer 8

• An assessment of an organizations internal & external environments.

Question 9

SWOT analysis

Answer 9

• Strengths
• Weaknesses
• Opportunities
• Threats
• the SWOT analysis is a tool that frames the situational analysis.

Question 10

Green Marketing

Answer 10

• Marketing environmentally safe products & services in a way that is good for the environment.

Question 11

Mission Statement

Answer 11

• defines the purpose of the organization & answers the question of how a company defines its business.

Question 12

Objectives

Answer 12

• What organizations want to accomplish (the end result) in a given time frame.

Question 13

Strategies

Answer 13

• Actions (means) taken to accomplish objectives.

Question 14

Marketing Plan

Answer 14

• Strategic plan at the functional level that provides a firms marketing group w/direction.

Question 15

Market penetration strategies

Answer 15

• Focus on increasing a firms sales of its existing customers.
  Ex. discount for buying multiple packs of snacks. Fritos.

Question 16

Product development strategies

Answer 16

• Involve creating new products for existing customers.

Ex. Variation, different flavor, etc.

Question 17

Market Development Strategies

Answer 17

• Focus on entering new markets w/existing products.

Question 18

Franchising

Answer 18

• getting an independent operator the right to use your company’s business model, techniques, & trademarks for a fee.
• Ex. McDonald’s & Subway

Question 19

Contract Manufacturing

Answer 19

• When companies hire manufacturers to produce their products in another country.
  Ex. cell phones, computers, & printers

Question 20

Joint Ventures

Answer 20

• Combine expertise & investments of two companies & help companies enter foreign markets.

Question 21

Direct Investment

Answer 21

• Owning a company or facility overseas.

- involves the most risk & investment but offers the most control.

Question 22

Diversification Strategices

Answer 22

• Offering products that are unrelated to other existing products produced by the organization.

Question 23

Portfolio

Answer 23

• A group of business units owned by a single firm.

Question 24

Portfolio Planning Approach

Answer 24

• An approach to analyzing various businesses relative to one another.

Question 25

Boston Consulting Group (BCG) Matrix

Answer 25

- A portfolio planning approach that examines strategic business units based on their relative market shares & growth rates. * Stars, Cash Cows, Question Marks, or Dogs

Question 26

Star

Answer 26

- business/offering: high market share & high market growth

Question 27

Question Marks (problem children)

Answer 27

- business/offering: a low market share & high market growth.

Question 28

Dogs

Answer 28

- business/offering: low market share & low market growth.

Question 29

Harvest

Answer 29

- When a firm lowers investment in a product or business. | * goal is to earn short-term profits from product regardless of long-term impact on its survival.

Question 30

General Electric (GE) approach

Answer 30

- Examines a business's strengths & the attractiveness of the industry in which it completes.

Question 31

Cash Cows

Answer 31

- business/offering: high market share & low market growth.