Chapter 6: Strategic Management Flashcards Preview

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Flashcards in Chapter 6: Strategic Management Deck (39)
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1
Q

Strategic positioning

A

Attempts to achieve sustainable competitive advantage but preserving what is distinctive about a company

2
Q

3 levels of strategic management

A

Corporate level strategy
Business level strategy
Functional level strategy

3
Q

Corporate strategy

A

Focuses on the organization as a whole

4
Q

Business level strategy

A

Focuses on individual business units or product/ service lines

5
Q

Functional level strategy

A

Applies to key functional departments or units within the business units

6
Q

5 steps to strategic management process

A

1) establish the mission, vision, and values statements
2) asses the current reality
3) formulate corporate, business, and functional strategies
4) execute the strategies
5) maintain strategic control

7
Q

Current reality assessment (aka organizational assessment)

A

Look at where the organization stands and see what is working and what could be different so as to maximize efficiency and effectiveness in achieving the organizations mission

8
Q

Strategy formulation

A

Process of choosing among different strategies and altering them to best fit the organizations needs

9
Q

Strategy implementation

A

Putting strategic plans into effect

10
Q

Strategic control

A

Consists of monitoring the execution of strategy and making adjustments, if necessary

11
Q

Sustainable competitive advantage

A

Exists when other companies can not duplicate the value delivered to customers

12
Q

SWOT analysis

A

Strengths
Weakness
Opportunities
Threats

13
Q

Organizational strengths

A

Skills and capabilities that give the organization special competencies and competitive advantages

14
Q

Organizational weaknesses

A

Drawbacks that hinder an organization in executing strategies on pursuit of its vision

15
Q

Organizational opportunities

A

Environmental factors that the organization may exploit for competitive advantage

16
Q

Organizational threats

A

Environmental factors that hinder and organizations achieving a competitive advantage

17
Q

VRIO

A

Valuable
Rare
Costly to imitate
Organized to exploit value, rarity, imitability

18
Q

Forwcast

A

Projection for the future

19
Q

Trend analysis

A

Hypothetical extension of a past series or events into the future

20
Q

Contingency planning (AKA scenario planning)

A

Plan B

Alternative solutions to a problem

21
Q

Benchmarking

A

Companies compare its performance with that of the high-performing organizations

22
Q

3 types of Corpoate strategy

A

Growth strategy
Stability strategy
Defensive strategy

23
Q

Growth strategy

A

Grand strategy that involves expansion - as in sales revenue, market share, # of employees

24
Q

Innovative strategy

A

Often a growth staregy leads to this, growing the market share or profits by innovating improvements on products or services

25
Q

Stability strategy

A

Grand strategy that involves little or not significant change

26
Q

Defensive strategy

A

Grand strategy that involves reduction in the organizations efforts

27
Q

BCG matrix

A

Management strategy by which companies evaluate their strategic business units on the basis of:

1) business growth rates
2) share of the market

28
Q

Diversification

A

Strategy of moving into new lines of business

29
Q

Related diversification

A

When a company purchases a business that is related to the company’s existing business portfolio

(Disney buying fox)

30
Q

Unrelated diversification

A

Occurs when a company acquired another company in a completely unrelated business

31
Q

Vertical integration

A

Fuel expands into businesses that provide the supplies it needs to make its products

32
Q

Porters mode look for industry analysis

A

5 primary competitive forces

1) threats of new entrants
2) bargaining power of suppliers
3) bargaining power
4) threats of substitute products or services
5) rivalry among competitors

33
Q

Porters four competitive strategies

A

1) cost leadership
2) differentiation
3) cost-focus
4) focused-differentiation

34
Q

Costleadership strategy

A

Keep the prices or a product or service below those of competitors and go a wide market

35
Q

Differentiation strategy

A

Offer products and services that are of unique and superior value of a wide market

36
Q

Cost focus strategy

A

Keep the costs and prices below competitors but to target a narrow market

37
Q

Focussed differentiation strategy

A

Offer products and services that are unique and of superior value compared to those of competitors and to target a narrow market

38
Q

Maintaining strategic control

A

Engage people
Keep it simple
Stay focussed
Keep moving

39
Q

3 core processes of business

A

People
Strategy
Operations