Chapter 6: Strategic Management Flashcards
(39 cards)
Strategic positioning
Attempts to achieve sustainable competitive advantage but preserving what is distinctive about a company
3 levels of strategic management
Corporate level strategy
Business level strategy
Functional level strategy
Corporate strategy
Focuses on the organization as a whole
Business level strategy
Focuses on individual business units or product/ service lines
Functional level strategy
Applies to key functional departments or units within the business units
5 steps to strategic management process
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
Current reality assessment (aka organizational assessment)
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
Strategy formulation
Process of choosing among different strategies and altering them to best fit the organizations needs
Strategy implementation
Putting strategic plans into effect
Strategic control
Consists of monitoring the execution of strategy and making adjustments, if necessary
Sustainable competitive advantage
Exists when other companies can not duplicate the value delivered to customers
SWOT analysis
Strengths
Weakness
Opportunities
Threats
Organizational strengths
Skills and capabilities that give the organization special competencies and competitive advantages
Organizational weaknesses
Drawbacks that hinder an organization in executing strategies on pursuit of its vision
Organizational opportunities
Environmental factors that the organization may exploit for competitive advantage
Organizational threats
Environmental factors that hinder and organizations achieving a competitive advantage
VRIO
Valuable
Rare
Costly to imitate
Organized to exploit value, rarity, imitability
Forwcast
Projection for the future
Trend analysis
Hypothetical extension of a past series or events into the future
Contingency planning (AKA scenario planning)
Plan B
Alternative solutions to a problem
Benchmarking
Companies compare its performance with that of the high-performing organizations
3 types of Corpoate strategy
Growth strategy
Stability strategy
Defensive strategy
Growth strategy
Grand strategy that involves expansion - as in sales revenue, market share, # of employees
Innovative strategy
Often a growth staregy leads to this, growing the market share or profits by innovating improvements on products or services
