Chapter 4 Planning and Strategic Management Flashcards Preview

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Flashcards in Chapter 4 Planning and Strategic Management Deck (29):
1

What are the steps in the strategic planning process? Why should companies engage in strategic planning?

1) Situational analysis
2) Alternative Plans and Goal s
3) Plan and Goal evaluation
4) Plan and Goal selection
5) Implementation
6) Monitor and Control

Planning provides individuals and work units with a clear map to follow in their future activities; at the same time this map may be flexible enough to allow for individual circumstances and changing conditions.

2

What are the components of a Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis?

Strengths and weaknesses refer to internal resources.例)an organization’s strengths might include skilled management, positive cash flow, and well-known and highly regarded brands. Weaknesses might be lack of spare production capacity and the absence of reliable suppliers.

Opportunities and threats arise in the macroenvironment and competitive environment. Examples of opportunities are a new technology that could make the supply chain more efficient and a market niche that is currently underserved. Threats might include the possibility that competitors will enter the underserved niche once it has been shown to be profitable.

3

What is the difference between strategic vision, strategic intent, strategic objectives, and strategic mission?

long-termなdirection/strategic intentがstrategic vision.

4

What does a core competency mean for an organization?

core competence: A unique skill and/or knowledge an organization possesses that gives it an edge over competitors.

When resources are valuable, rare, inimitable, and organized, they can be viewed as a company's core competencies.

例:本田の小型エンジン、ソニーのminiaturization、

5

As an owner of a clothing manufacturer who is considering entering the teen and pre-teen markets, which of the following steps should be accomplished first to make your decision?
A) make alternative goals and plans
B) evaluate the goals
C) select a plan
D) do a situational analysis
E) monitor and control the plan

D

6


Organizations usually have a number of mutually reinforcing strategic goals. A computer manufacturer has the following goals at various levels of the organization. Which goal is a strategic goal?
A) the number of programmers to hire
B) which accounting system to use
C) the manufacturing equipment to be purchased for a new product line
D) launching a specified number of new products in a particular time frame
E) the possible change in advertising agencies

D

7

Which of the following is one of the four key drivers of a strategy map?
A) the skills of its people and their ability to grow and learn
B) the effectiveness of its internal processes
C) its ability to deliver value to customers
D) its ability to grow its financial assets
E) All of the above are key drivers of a strategy map.

.E

8


Which of the following is an example of a mission statement?
A) We work to help people and businesses throughout the world to realize their full potential. Microsoft
B) Together we create a community of good neighbors. City of Redmond, WA
C) To enhance and become an integral part of the training mission of the Naval Service Training Command, Great Lakes, by instilling in our newest sailors a strong sense of tradition and heritage of Naval service in the United States. Great Lakes Naval Museum
D) To be the world's most dynamic science company, creating sustainable solutions essential to a better, safer and healthier life for people everywhere. DuPont
E) To have a Coke within arm's reach of every person in the world. Coca-Cola

A

9


Frequently, the difference between an opportunity and a threat depends on how a company positions itself strategically.
A) True
B) False

A

10


The Walt Disney Company has developed its strategic plan on combinations of tangible assets (e.g. hotels and theme parks) as well as intangible assets (brand recognition, talented craftspeople, and culture focused on customer service).
A) True
B) False

A

11


A core competence is something a company does especially well relative to its competitors.
A) True
B) False

Bと答えてしまった。

答えはA

12


8
A corporate strategy identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses. Which of the following is an example of a corporate strategy?
A) benchmarking
B) collaboration
C) concentration
D) differentiation
E) cooptation

Aと最初答えてしまった。

答えはC

13

9
Nordstrom follows a differentiation business strategy.
A) True
B) False

.A

14

10
Which of the following is a step in the strategy implementation process?
A) Complete a financial analysis.
B) Establish a mission, vision, and goals.
C) Analyze external opportunities and threats.
D) Assess organizational capabilities.
E) Build a strategy map.

D

15

Summarize the basic steps in any planning process.

1) Situational analysis
A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration.

For example, if you are a manager in a magazine company considering the launch of a sports publication for the teen market, your analysis will include such factors as the number of teens who subscribe to magazines, the appeal of the teen market to advertisers, your firm’s ability to serve this market effectively, current economic conditions, the level of teen interest in sports, and any sports magazines already serving this market and their current sales.


2) Alternative goals and plans

Continuing with our magazine publishing example, the alternatives you might want to consider could include whether the magazine should be targeted at young men, young women, or both groups, and whether it should be sold mainly online, through subscriptions, or on newsstands.

Goals should have certain qualities, which are easy to remember with the acronym SMART:

Specific —When goals are precise, describing particular behaviors and outcomes, employees can more easily determine whether they are working toward the goals.

Measurable —As much as possible, the goal should quantify the desired results, so that there is no doubt whether it has been achieved.

Attainable (but challenging) —Employees need to recognize that they can attain the goals they are responsible for, or else they are likely to become discouraged. However, they also should feel challenged to work hard and be creative.

Relevant —Each goal should contribute to the organization’s overall mission (discussed later in this chapter), while being consistent with its values, including
ethical standards (see Chapter 5). Goals are most likely to be relevant to the organization’s overall objectives if they are consistent within and among work groups.

Time-bound —Effective goals specify a target date for completion. Besides knowing what to do, employees should know when they need to deliver results.



3) Goal and plan evaluation
Next, managers will evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan. They must prioritize those goals and even eliminate some of them. Also, managers will consider care fully the implications of alternative plans for meeting high-priority goals. In particular, they will pay a great deal of attention to the cost of any initiative and the investment return that is likely to result.

In our magazine publishing example, your evaluation might determine that newsstand sales alone wouldn’t be profitable enough to justify the launch. Perhaps you could improve profits with an online edition supplemented by Podcasts.


4) Goal and plan selection
Once managers have assessed the various goals and plans, they will select the one that is most appropriate and feasible. The evaluation process will identify the priorities and trade-offs among the goals and plans. For example, if your plan is to launch a number of new publications, and you’re trying to choose among them, you might weigh the different up-front investment each requires, the size of each market, which one fits best with your existing product line or company image, and so on.


5) Implementation
Once managers have selected the goals and plans, they must implement the plans designed to achieve the goals. Even the best plans are useless if they are not implemented properly. Managers and employees must understand the plan, have the resources to implement it, and be motivated to do so. Including employees in the previous steps of the planning process paves the way for the implementation phase. As we mentioned earlier, employees usually are better informed, more committed, and more highly motivated when a goal or plan is one that they helped develop.

Finally, successful implementation requires a plan to be linked to other systems in the organization, particularly the budget and reward systems. If the manager does not have a budget with financial resources to execute the plan, the plan is probably doomed. Similarly, goal achievement must be linked to the organization’s reward system. Many organizations use incentive programs to encourage employees to achieve goals and to implement plans properly. Commissions, salaries, promotions, bonuses, and other rewards are based on successful performance.


6) Monitor and control
Managers must continually monitor the actual performance of their work units against the unit’s goals and plans. They will also need to develop control systems to measure that performance and allow them to take corrective action when the plans are implemented improperly or when the situation changes.

In our magazine publishing example, newsstand and subscription sales reports are essential for letting you know how well your new magazine launch is going. If subscription sales aren’t doing as well as expected, you may need to revise your marketing plan.

16

Describe how strategic planning should be integrated with tactical and operational planning.

strategic managementとは

上層部がstrategyを担当
中層部がtacticを担当
下層部がoperationを担当

tactical planning:A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing.

operational planning:The process of identifying the specific procedures and processes required at lower levels of the organization.


従来だと、senior executivesがstrategyを定めてからtactical/operational managerがその決定に従うのだが最近はsenior executiveがstrategic planningに時間がかかりすぎてしまうが故にsenior executiveとtactical/operational managersの間に隔たりが生じてしまうという問題が発生。

よって近年(ここ25年の間)、senior executives/tactical manager/operational managerを全員含めてstrategic goal/planningを行うようにしはじめた。これをStrategic managementと呼ぶ。

strategic management:A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.

17

strategic planning

strategic goals

A set of procedures for making decisions about the organization’s long-term goals and strategies.



Major targets or end results relating to the organization’s long-term survival, value, and growth. Typical strategic goals include growth, increasing market share, improving profitability, boosting return on investment, fostering both quantity and quality of outputs, increasing productivity, improving customer service, and contributing to society.

18

Define core competencies and explain how they provide the foundation for business strategy.

core competence: A unique skill and/or knowledge an organization possesses that gives it an edge over competitors.

When resources are valuable, rare, inimitable, and organized, they can be viewed as a company's core competencies.

例:本田の小型エンジン、ソニーのminiaturization、

19

Resources are a source of competitive advantage only under certain circumstances. Give 4 examples.

1) If the resource is instrumental for creating customer value. アマゾンの検索システムとか

2)レアであること

3)真似しにくい

4) Resources are well organized
コーラの会社はwell-organizedだから新しいソフトドリンクをすぐにグローバルに売り出す事が出来る

20

To be fully effective, the organization’s strategic, tactical, and operational goals and plans must be a _ _ _ _ _ _

aligned —that is, they must be consistent, mutually supportive, and focused on achieving the common purpose and direction.

One method for aligning the organization’s strategic and operational goals is the strategy map. The strategy map 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 will play in helping to achieve them. The map illustrates the four key drivers (or “balanced scorecard”) of a firm’s long-term success: the skills of its people and their ability to grow and learn; the effectiveness of its internal processes; its ability to deliver value to customers; and, ultimately, its ability to grow its financial assets. The map shows how specific plans and goals in each area link to the others and can generate real improvements in an organization’s performance.

21

Six strategic management processes

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, and threats) analysis and strategy formulation.
5) Strategy implementation
6) Strategic control

22

Strategic management processes

Step1 Establishment of Mission, vision, and goals

mission:An organization’s basic purpose and scope of operations.
例)
McDonald’s: “To be our customers’ favorite place and way to eat.”
Microsoft: “We work to help people and businesses throughout the world to realize their full potential.”

strategic vision:The long-term direction and strategic intent of a company.

missionが現在、strategic visionは未来。
例)
DuPont: “To be the world’s most dynamic science company, creating sustainable solutions essential to a better, safer and healthier life for people everywhere.” City of Redmond, Washington: “Together we create a community of good neighbors.”
Great Lakes Naval Museum: “To enhance and become an integral part of the training mission of the Naval Service Training Command, Great Lakes, by instilling in our newest sailors a strong sense of tradition and heritage of Naval service in the United States.”

23

Strategic management processes

Step 2: Analysis of External Opportunities and Threats

Analysis of the external environment

Important activities in an environmental analysis include:
・ Industry and Market Analysis
・ Competitor Analysis
・ Political and Regulatory Analysis
・ Social Analysis
・ Human Resources Analysis (labor issues)
・ Macroeconomic Analysis
・ Technological Analysis

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

24

Strategic management processes

Step 3: Analysis of Internal Strengths and Weaknesses

・Financial Analysis
・Marketing Audit
・Operations analysis
・Other Internal Resources Analysis
・Human Resources Assessment
Table4.2を参照

25

benchmarkingとは

他社の業績と比べる事

26

Strategic Management Processes

Step 4: SWOT Analysis and Strategy Formulation

SWOT analysis:A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy.

27

Summarize the types of choices available for corporate strategy.

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

Concentration strategy:A strategy employed for an organization that operates a single business and competes in a single industry.

In the food-retailing industry, Kroger, Safeway, and A&P all pursue concentration strategies. Frequently, companies pursue concentration strategies to gain entry into an industry when industry growth is good, or when the company has a narrow range of competencies. An example is the Chinese company Baidu.com, described in the BusinessWeek box. C. F. Martin & Company pursues a concentration strategy by focusing on making the best possible guitars and guitar strings, a strategy that has enabled the family-owned business to operate successfully for more than 150 years.


vertical integration:The acquisition or development of new businesses that produce parts or components of the organization’s product.例)自動車産業において、研究開発型企業と部品製造工場、そして販売を行う営業会社に至るまでの業務がグループ企業内で総合的に行われること


concentric diversification(多様化):A strategy used to add new businesses that produce related products or are involved in related markets and activities.例)レストランがレストラン関連の別のサービスを提供しはじめる

conglomerate diversification(複合企業):A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities.例)レストランがレストランとは関係のないサービスを提供し始める

Typically, companies pursue a conglomerate diversification strategy to minimize risks due to market fluctuations in one industry.

28

Discuss how companies can achieve competitive advantage through business strategy.

business strategy:The major actions by which a business competes in a particular industry or market.

low-cost strategy:A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product.

Low-price strategies usually require low production costs.

differentiation strategy:A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions.

functional strategies:Strategies implemented by each functional area of the organization to support the organization’s business strategy.

The typical functional areas include production, human resources, marketing, research and development, finance, and distribution. For example, IBM’s plan to grow through acquisitions of software companies requires functional strategies for training its sales force to understand the new products and for training the acquired company’s employees to understand IBM’s culture and procedures. Part of the functional strategy includes assigning each new employee to an experienced IBM mentor.

29

Strategic Management process

step 5: Strategic implementation



Describe the keys to effective strategy implementation.

In general, strategy implementation involves four related steps:

Step 1: Define strategic tasks. Articulate in simple language what a particular business must do to create or sustain a competitive advantage. Define strategic tasks to help employees understand how they contribute to the organization, including redefining relationships among the parts of the organization.

Step 2: Assess organization capabilities. Evaluate the organization’s ability to implement the strategic tasks. A task force typically interviews employees and managers to identify specific issues that help or hinder effective implementation. Then the results are summarized for top management. In the course of your career, you will likely be asked to participate in a task force. We discuss working effectively in teams in Chapter 14.

Step 3: Develop an implementation agenda. Management decides how it will change its own activities and procedures; how critical interdependencies will be managed; what skills and individuals are needed in key roles; and what structures, measures, information, and rewards might ultimately support the needed behavior. A philosophy statement, communicated in terms of value, is the outcome of this process.

Step 4: Create an implementation plan. The top management team, the employee task force, and others develop the implementation plan. The top management team then monitors progress. The employee task force continues its work by providing feedback about how others in the organization are responding to the changes.