Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Strategic Management > Chapter 4: Types of Strategies > Flashcards

Chapter 4: Types of Strategies Flashcards

1
Q

Performance goals of an organization, intended to be achieved over a period of 5 years or more.

A

Long-Term Objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Without long-term objectives, an organization would _____

A

Without long-term objectives, an organization would drift aimlessly toward some unknown end

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Provide the Varying Performance Measures by
Organizational Level

A

Organization Level: Corporate

Basis for Annual Bonus or MeritPay:
- 75% based on the long-term objectives
- 25% based on annual objectives

Organization Level: Division

Basis for Annual Bonus or MeritPay:
- 50% based on the long-term objectives
- 50% based on annual objectives

Organization Level: Function

Basis for Annual Bonus or MeritPay:
- 25% based on the long-term objectives
- 75% based on annual objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Provide a list of the Desired Characteristics
of Objectives

A

The Desired Characteristics
of Objectives
1. Quantitative
2. Measurable
3. Realistic
4. Understandable
5. Challenging
6. Hierarchical
7. Obtainable
8. Congruent across departments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the Nature of Long-Term Objectives?

A

Objectives
1. provide direction
2. allow synergy
3. assist in evaluation
4. establish priorities
5. reduce uncertainty
6. minimize conflicts
7. stimulate exertion (effort)
8. aid in both the allocation of resources and the
design of jobs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Define Financial objectives

A

Financial objectives include growth in revenues,
growth in earnings, higher dividends, larger profit
margins, greater return on investment, higher earnings per share, a rising stock price, improved cash flow, and so on.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

This include growth in revenues, growth in earnings, higher dividends, larger profit
margins, greater return on investment, higher earnings per share, a rising stock price, improved cash flow, and
so on.

A

Financial objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Define Strategic objectives

A

Strategic objectives include a larger market share,
quicker on-time delivery than rivals, shorter design-to-market times than rivals, lower costs than rivals, higher product quality than rivals, wider geographic coverage
than rivals, achieving technological leadership,
consistently getting new or improved products to
market ahead of rivals, and so on.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

This include a larger market share, quicker on-time delivery than rivals, shorter design-to-market times than rivals, lower costs than rivals, higher
product quality than rivals, wider geographic coverage than rivals, achieving technological leadership, consistently getting new or improved products to market ahead of rivals, and so on.

A

Strategic objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Provide the list of Not Managing by Objectives:
AVOID!

A

Not Managing by Objectives:
AVOID!
1. Managing by Extrapolation
2. Managing by Crisis
3. Managing by Subjectives
4. Managing by Hope

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the Types of Strategies?

A
  1. Forward Integration
  2. Backward Integration
  3. Horizontal Integration
  4. Market Penetration
  5. Market Development
  6. Product Development
  7. Related Diversification
  8. Unrelated Diversification
  9. Retrenchment
  10. Divesture
  11. Liquidation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Provide the figure of the Levels of Strategies with Persons Most Responsible

A

Check mo sa PPT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define Forward Integration

A

Forward Integration involves gaining ownership or increased control over distributors or retailers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

This involves gaining ownership or increased control over distributors or retailers

A

Forward Integration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

This strategy of seeking ownership or increased
control of a firm’s suppliers

A

Backward Integration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Define Backward Integration

A

Backward Integration is a strategy of seeking ownership or increased
control of a firm’s suppliers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Define Horizontal Integration

A

Horizontal Integration is a strategy of seeking ownership of or increased control over a firm’s competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

This is a strategy of seeking ownership of or increased control over a firm’s competitors

A

Horizontal Integration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the 3 Integration Strategies?

A
  1. Forward Integration
  2. Backward Integration
  3. Horizontal Integration
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Provide the list of Forward Integration Guidelines

A
  1. When the availability of quality distributors is so limited as to offer a competitive advantage
  2. When an organization competes in an industry that is growing
  3. When an organization has both capital and human resources
    to manage distributing their own products
  4. When the advantages of stable production are
    particularly high
  5. When present distributors or retailers have high profit margins
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Provide the list of Backward Integration Guidelines

A
  1. When an organization’s present suppliers are
    especially expensive or unreliable
  2. When the number of suppliers is small and the number of competitors is large
  3. When the organization competes in a growing industry
  4. When an organization has both capital and human resources
  5. When the advantages of stable prices are particularly important
  6. When present suppliers have high profit margins
  7. When an organization needs to quickly acquire a
    needed resource
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Provide the list of Horizontal Integration Guidelines

A
  1. When an organization competes in a growing
    industry
  2. When increased economies of scale provide
    major competitive advantages
  3. When an organization has both the capital and
    human talent needed
  4. When competitors are faltering due to a lack of
    managerial expertise
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are the 3 Intensive Strategies?

A
  1. Market Penetration Strategy
  2. Market Development
  3. Product Development Strategy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Define Product Development Strategy

A

Product Development Strategy seeks increased sales by improving or modifying present products or services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
This strategy seeks increased sales by improving or modifying present products or services
Product Development Strategy
26
This involves introducing present products or services into new geographic areas
Market Development
27
Define Market Development
Market Development involves introducing present products or services into new geographic areas
28
Define Market Penetration Strategy
This strategy seeks to increase market share for present products or services in present markets through greater marketing efforts
29
This seeks to increase market share for present products or services in present markets through greater marketing efforts
Market Penetration Strategy
30
Provide the list of Market Penetration Guidelines
1. When current markets are not saturated with a particular product or service 2. When the usage rate of present customers could be increased significantly 3. When the market shares of major competitors have been declining while total industry sales have been increasing 4. When increased economies of scale provide major competitive advantages
31
Provide the list of Market Development Guidelines
1. When new channels of distribution are available that are reliable, inexpensive, and of good quality 2. When an organization is very successful at what it does 3. When new untapped or unsaturated markets exist 4. When an organization has the needed capital and human resources to manage expanded operations 5. When an organization has excess production capacity 6. When an organization's basic industry is rapidly becoming global in scope
32
Provide the list of Product Development Guidelines
1. When an organization has successful products that are in the maturity stage of the product life cycle 2. When an organization competes in an industry characterized by rapid technological developments 3. When major competitors offer better-quality products at comparable prices 4. When an organization competes in a high-growth industry 5. When an organization has strong research and development capabilities
33
what are the 2 Diversification Strategies?
1. Related Diversification 2. Unrelated Diversification
34
Define the Unrelated Diversification
adding new, unrelated products and services
35
Define the Related Diversification
adding new but related products and services
36
adding new, unrelated products and services
Unrelated Diversification
37
adding new but related products and services
Related Diversification
38
Provide the list of Synergies of Related Diversification
1. Transferring competitively valuable expertise, technological know-how, or other capabilities from one business to another 2. Combining the related activities of separate businesses into a single operation to achieve lower costs 3. Exploiting common use of a known brand name 4. Using cross-business collaboration to create strengths
39
Provide the list of Related Diversification Guidelines
1. When an organization competes in a no-growth or a slow-growth industry 2. When adding new, but related, products would significantly enhance the sales of current products 3. When new, but related, products could be offered at highly competitive prices 4. When new, but related, products have seasonal sales levels that counterbalance an organization’s existing peaks and valleys 5. When an organization’s products are currently in the declining stage of the product’s life cycle 6. When an organization has a strong management team
40
Provide the list of Unrelated Diversification Guidelines
1. When revenues derived from an organization's current products would increase significantly by adding the new, unrelated products 2. When an organization competes in a highly competitive or a no-growth industry, as indicated by low industry profit margins and returns 3. When an organization's present channels of distribution can be used to market the new products to current customers 4. When the new products have countercyclical sales patterns compared to present products 5. When an organization's basic industry is experiencing declining annual sales and profits 6. When an organization has the capital and managerial talent needed to compete successfully in a new industry 7. When an organization has the opportunity to purchase an unrelated business that is an attractive investment opportunity 8. When there exists financial synergy 9. When existing markets for an organization's present products are saturated 10. When antitrust action could be charged against an organization that historically has concentrated on a single industry
41
What are the 3 Defensive Strategies?
1. Retrenchment 2. Divestiture 3. Liquidation
42
Define Liquidation
- Selling all of a company’s assets, in parts, for their tangible worth - can be an emotionally difficult strategy
43
Selling all of a company’s assets, in parts, for their tangible worth
Liquidation
44
can be an emotionally difficult strategy
Liquidation
45
Define Divestiture
- Selling a division or part of an organization - Often used to raise capital for further strategic acquisitions or investments
46
Selling a division or part of an organization
Divestiture
47
Divestiture often used to ______
Divestiture often used to raise capital for further strategic acquisitions or investments
48
This often used to raise capital for further strategic acquisitions or investments
Divestiture
49
Define Retrenchment
- Regroups through cost and asset reduction to reverse declining sales and profits - occurs when an organization regroups through cost and asset reduction to reverse declining sales and profits - also called a turnaround or reorganizational strategy - designed to fortify an organization’s basic distinctive competence
50
Retrenchment also called _______
turnaround or reorganizational strategy
51
This also called a turnaround or reorganizational strategy
Retrenchment
52
Regroups through cost and asset reduction to reverse declining sales and profits
Retrenchment
53
This designed to fortify an organization’s basic distinctive competence
Retrenchment
54
Retrenchment is designed to _________
Retrenchment is designed to fortify an organization’s basic distinctive competence
55
This occurs when an organization regroups through cost and asset reduction to reverse declining sales and profits
Retrenchment
56
Provide the list of Retrenchment Guidelines
1. When an organization has a distinctive competence but has failed consistently to meet its goals 2. When an organization is one of the weaker competitors in a given industry 3. When an organization is plagued by inefficiency, low profitability, and poor employee morale 4. When an organization fails to capitalize on external opportunities and minimize external threats 5. When an organization has grown so large so quickly that major internal reorganization is needed
57
Provide the list of Divestiture Guidelines
1. When an organization has pursued a retrenchment strategy and failed to accomplish improvements 2. When a division needs more resources to be competitive than the company can provide 3. When a division is responsible for an organization's overall poor performance 4. When a division is a misfit with the rest of an organization 5. When a large amount of cash is needed quickly 6. When government antitrust action threatens a firm
58
Liquidation can be _______
Liquidation can be an emotionally difficult strategy
59
Provide the list of Liquidation Guidelines
1. When an organization has pursued both a retrenchment strategy and a divestiture strategy, and neither has been successful 2. When an organization's only alternative is bankruptcy 3. When the stockholders of a firm can minimize their losses by selling the organization's assets
60
What are the Porter's Five Generic Strategies? and draw the figure.
Type 1: Cost Leadership - Low Cost Type 2: Cost Leadership - Best Value Type 3: Differentiation Type 4: Focus - Low Cost Type 5: Focus - Best Value
61
Define Cost Leadership
Cost Leadership emphasizes producing standardized products at a very low per-unit cost for consumers who are price-sensitive Type 1 - low-cost strategy that offers products or services to a wide range of customers at the lowest price available on the market Type 2 - best-value strategy that offers products or services to a wide range of customers at the best price-value available on the market
62
Define Differentiation
(Type 3) Differentiation is a strategy aimed at producing products and services considered unique industry-wide and directed at consumers who are relatively price-insensitive
63
This emphasizes producing standardized products at a very low per-unit cost for consumers who are price-sensitive
Cost Leadership
64
Provide the definition of Type 4: Focus - Low Cost
Type 4 - low-cost focus strategy that offers products or services to a niche group of customers at the lowest price available on the market
65
Provide the definition of Type 5: Focus - Best Value
Type 5 - best-value focus strategy that offers products or services to a small range of customers at the best price-value available on the market
66
Provide the list of Means for Achieving Strategies
1. Cooperation Among Competitors 2. Joint Venture/Partnering 3. Merger/Acquisition 4. Private-Equity Acquisitions 5. First Mover Advantages 6. Outsourcing/Reshoring
67
Provide the list of Key Reasons Why Many Mergers and Acquisitions Fail
1. Integration difficulties 2. Inadequate evaluation of target 3. Large or extraordinary debt 4. Inability to achieve synergy 5. Too much diversification 6. Managers overly focused on acquisitions 7. Too large an acquisitions 8. Difficult to integrate different organizational cultures 9. Reduced employee morale due to layoffs and relocations
68
Provide the list of Potential Benefits of Merging With or Acquiring Another Firm
1. To provide improved capacity utilization 2. To make better use of the existing sales force 3. To reduce managerial staff 4. To gain economies of scale 5. To smooth out seasonal trends in sales 6. To gain access to new suppliers, distributors, customers, products, and creditors 7. To gain new technology 8. To gain market share 9. To enter global markets 10. To gain pricing power 11. To reduce tax obligations
69
Provide the list of Benefits of a Firm Being the First Mover
1. Secure access and commitments to rare resources 2. Gain new knowledge of critical success factors and issues 3. Gain new market share and position in the best locations 4. Establish and secure long-term relationships with customers, suppliers, distributions, and investors 5. Gain customer loyalty and commitments
70
This is an example of a: Amazon began rapid delivery services in some U.S. cities
Forward Integration
71
Provide an example of a Forward Integration
Amazon began rapid delivery services in some U.S. cities
72
This is an example of: Starbucks purchased a coffee farm
Backward Integration
73
Provide an example of a Backward Integration
Starbucks purchased a coffee farm
74
This is an example of: BB&T acquired Susquehanna Bancshares
Horizontal Integration
75
Provide an example of a Horizontal Integration
BB&T acquired Susquehanna Bancshares
76
This is an example of: Under Amour signed tennis champion Andy Murray to a 4-year, $23 million marketing deal
Market Penetration
77
Provide an example of a Market Penetration
Under Amour signed tennis champion Andy Murray to a 4-year, $23 million marketing deal
78
Provide an example of a Market Development
Gap opened its first five stores in China
79
This is an example of: Gap opened its first five stores in China
Market Development
80
This is an example of: Amazon just began offering its own line of baby diapers and wipes
Product Development
81
Provide an example of a Product Development
Amazon just began offering its own line of baby diapers and wipes
82
Provide an example of a Related Diversification
Facebook acquired the text-messaging firm WhatsApps for $19 billon
83
This example is considered as: Staples closed 250 stores and reduced by 50% the size of other stores
Retrenchment
84
This example is considered as: Kroger and whole Foods Market are cooking meals, becoming restaurants
Unrelated Diversification
85
Provide an example of an Unrelated Diversification
Kroger and whole Foods Market are cooking meals, becoming restaurants
86
87
Provide an example of Retrenchment
Staples closed 250 stores and reduced by 50% the size of other stores
88
Provide an example of Diverstiture
Sears Holdings divested its Land's End division to Sear's shareholders
89
This example is considered as: Sears Holdings divested its Land's End division to Sear's shareholders
Diverstiture
90
Provide an example of a Liquidation
The trump Taj Mahal in Atlantic City, New Jersey, faces liquidation

Strategic Management (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions