Chapter 9 Flashcards
(17 cards)
advantage
normally a result of superiority in one of three areas; resources, skills, or position
auditing
systematic process of objectively obtaining and evaluationg evidence regarding assertations about economic actions and events to ascertain the degree of correspondence between these assertions and established criteria, and communicating the results to interested users
balanced scorecard
anylysis requires that firms seek answers to the the following questions and utilize the information, in conjuntion with financial measures, to evaluate strategies being implemented: How well is the firm continually imporving and creating value along with innovation, technological leadership, quality, efficiencies? How well is the firm sustaining and improving upon core competencies and comptetitive advantages? How satisfied are the customers?
consistency
inconsistencies in strategy cause organizational problems, three guidelines are indicative of these inconsistencies; If managerial problems continue despite changes in personnel, If success for one organizational department is interpreted to mean a failure in another department, If policy problems continue to be brought to the top for resolution.
consonance
the need for strategists to examine SETS OF TRENDS, as well as individual trends, in evaluating strategies
contingency plans
alternative plans that can be put into effect if certain key events do not occur as expected.
feasibility
can the strategy be attempted within the physical, human and financial resources of the enterprise
future shock
occurs when the nature, types and speed of changes overpower an individuals or organizations ability and capacity to adapt.
GAAS
Generally Accepted Auditing Standards
GAAP
Generally Accepted Accounting Practices
IFRS
International Financial Reporting Standards
Management by wandering around
strategy evaluation activities on a continuous rather than periodic or year end basis. Continually aware of progress.
measuring organizational performance
comparing expected results to actual results, investigating devitions from plans, evaluating individual performance, and examining progress being made toward meeting stated objectives.
reviewing the underlying bases of an organizations strategy
approached by developing a revised EFE (external factors)and IFE (internal factors)matrix
Revised EFE matrix
should indicate how effective a firms strategies have been in response to key opportunities and threats
Revised IFE matrix
should focus on changes in the organization’s management, marketing, finance/accounting, production.operations, RandD, and management information systems strenth and weaknesses
taking corrective actions
requires making changes to competitively repostion a firm for the future; altering the organizational structure, replacing one or more key individuals, selling a division, revising a business mission. Establish or revise objectives, devise new policies, issue stock to raise capital, adding addtional sales persons, reallocate resources, develop new performance incentives.
