CHAPTER 5 Flashcards
(18 cards)
the first modern
business strategy theorist, strategy in the area of business is defined as ‘the determination
of the basic, long-term goals and objectives of an enterprise, and the adoption of courses of
action and the allocation of resources necessary for those goals.
Alfred Chandler
is a process of translating perceived opportunity into successful outcomes,
by means of purposive action sustained over a significant time. At a minimum, there must be
a clear intent translatable into specific objectives and some defined and effective means of
achieving these objectives by deliberate action involving the use of resources to which one
has access.
Strategy
can be defined as the art and science of formulating,
implementing, and evaluating cross-functional decisions that enable an organization to
achieve its objectives.
Strategic Management
The strategic management process consists of three stages:
• Strategy Formulation
• Strategy Implementation
• Strategy Evaluation
developing a vision and mission, identifying an
organization’s external opportunities and threats, determining internal strengths and
weaknesses, establishing long-term objectives, generating alternative strategies, and
choosing particular strategies to pursue.
Strategy Formulation
requires a firm to establish annual objectives, devise
policies, motivate employees, and allocate resources so that formulated strategies can be
executed.
Strategy Implementation
is the final stage in strategic management. Managers
desperately need to know when particular strategies are not working well; __________ is the primary means of obtaining this information.
Strategy Evaluation
once said, “In God we trust. All others bring data.” The strategic
management process can be described as an objective, logical, systematic approach for
making major decisions in an organization.
Edward Deming
This term can be defined as “anything that a firm does
especially well compared to rival firms.” When a firm can do something that rival firms
cannot do, or owns something that rival firms desire, that can represent a ___________.
Competitive Advantage
is often considered the first step in strategic planning, preceding even
development of a mission statement.
Vision Statement
identifies the scope of a firm’s
operations in product and market terms.” It addresses the basic question that faces all
strategists: “What is our business?”
Mission Statement
refer to economic, social, cultural,
demographic, environmental, political, legal, governmental, technological, and competitive
trends and events that could significantly benefit or harm an organization in the future.
External Opportunities and Threats
Identifying and evaluating organizational
strengths and weaknesses in the functional areas of a business is an essential strategic
management activity.
Internal Strength and Weaknesses
Objectives can be defined as specific results that an
organization seeks to achieve in pursuing its basic mission.
Long Term Objectives
are how long-term objectives will be achieved. Business strategies may
include geographic expansion, diversification, acquisition, product development, market
penetration, retrenchment, divestiture, liquidation, and joint ventures.
Strategies
are short-term milestones that organizations must achieve to
reach long-term objectives.
Annual Objectives
include guidelines,
rules, and procedures established to support efforts to achieve stated objectives. _______ are guides to decision-making and address repetitive or recurring situations.
Policies
include guidelines,
rules, and procedures established to support efforts to achieve stated objectives. _______ are guides to decision-making and address repetitive or recurring situations.
Policies
