Exam 1 Flashcards by Ashlyn Kromminga

The process of putting strategy into action is known as:

-strategic visioning
-environmental analysis
-strategy formulation
-strategy implementation

strategy implementation

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Which of the following is an example of SMART objectives?

-increase revenue by 20%
-increase market share by 2% in Q3, 2017
-open 50 stores in Ames by the end of the month
-increase employee knowledge by 10%

increase market share by 2% in Q3, 2017

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The goal of the organization’s _____________ is to challenge employees and give shape to its intended future.

-vision
-culture
-mission
-strategy

vision

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Company X is suffering from poor performance since past few years. The only way to fix the financial problems is to create a new vision statement.

-true
-false

false

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Which of the following is the least specific statement in terms of time horizon it will take to accomplish it?

-vision statement
-mission statement
-strategic objectives
-business strategy

vision statement

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What is SMART?

Specific
Measurable
Achievable
Realistic
Timebound

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If the goal is more general than specific, it has a _ time horizon instead of a _ time horizon.

long, short

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SMART strategic objectives help track _.

goals

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Which of the following is most specific component of external analysis?
-Five forces analysis
-Rivalry among existing firms
-General environment analysis
-Competitor analysis

Competitor analysis

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T/F: Substitute products pose a strong threat when they are more effective and priced than your existing products

True

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T/F: Takata is a powerful supplier in the automotive industry. As a result, Takata’s actions can decrease the profit potential of companies that make cars, such as Honda, Nissan and General Motors

True

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Companies that develop policies to reduce waste going to landfills are addressing which the following?
-Political environment
-Legal environment
-Physical environment
-Technological environment

Physical environment

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The primary purpose of applying Michael Porter’s five forces model is to:
-determine threats to profit potential for a competitor
-determine the profit potential of an industry
-maximize opportunities and threats in the external environment
-increase uncertainty regarding environmental characteristics

determine the profit potential of an industry

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What are the key characteristics of strategic management?

-Focus on present & future performance
-Ongoing
-Dynamic
-Concerned with conditions both outside and inside the firm
-To satisfy stakeholders

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T/F: Strategy is not fixed

true

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What type of statements are massively inspiring, overarching, and long term?

Vision and Mission

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What is the structure of public corporations?

Shareholders/Owners
Board of Directors
CEO
Top Management Team
Employees

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a Statement of organization includes:

values, aspirations, and goals

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What is a mission statement?

-purpose of the company
-forms the basis of competition
-more specific than vision statement
-focuses on how firm will compete

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Can vision statements fail?

yes

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what do strategic objectives have?

operationalize the vision & mission
tend to be specific
cover a defined time frame

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Strategic objectives should be _____.

SMART

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Hierarchy of goals

Vision
Mission Statement
Strategic Objectives

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What do TOP managers do? (4)

formulate strategies
set the ton for workplace behavior
create organizational culture
set ethical standards

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Organizational culture is the _ _ _ and _ shared throughout the firm

set of values and beliefs

External analysis is like the _ _ _ _.

layers of an onion

what are the layers of external analysis?

general-environment analysis industry analysis rivalry among existing firms competitor analysis

What is included in a general environment analysis?

political/legal technological global physical environment sociocultural economic demographic

what does industry analysis find?

buyers potential entrants suppliers substitute products

external analysis is the source of _ & _.

opportunities & threats

What does the Porter's 5 Forces model find?

what factors drive profitability in an industry

What are the 5 forces in Porter's Model?

Barriers to entry Supplier power Buyer power Threat of substitutes Rivalry

Barriers to entry depends on _ _ _ (3)

-capital requirements -importance of economies of scale -switching costs to customers

What does supplier bargaining power depend on?

switching costs to change suppliers number of large suppliers

What does buyer bargaining power depend on?

-switching costs to customers -purchase volume -purchase criteria

what depends on the degree of rivalry?

-switching costs to customers -size of competitors -high fixed costs

what does threat of substitutes depend on?

-quality and costs of substitutes -switching costs to customers

A good firm strategy should _ & _. It should aim to _ power of five forces.

neutralize threats & capture opportunities. decrease

what is the difference between vision, mission, and strategic objectives?

vision= what the organization wants to become mission=the organizations core purpose and values strategic objectives= concrete goals that help the organization achieve its mission and vision

On the inside of the firm, how do you formulate a strategy?

focus on internal strengths and weaknesses, capabilities, and resources

On the outside of the firm, how do you formulate a strategy?

analyze external opportunities and threats in the market environment

what are resources?

assets or inputs

what are capabilities?

are the firms ability to use resources effectively

what are the core competencies?

skills that are needed

what is competitive advantage?

edge over competitors

what is the role of strategic leaders?

drive and influence organizational direction, decisions, and performance

what is the role of organizational culture?

shapes values, behaviors, and actions, playing a critical role in strategy formulation and execution

How is ethics apart of culture?

is integral to the culture of an organization, ensuring that actions align with values and contribute to long-term success

What is the concept behind external environment analysis?

external environment analysis is essential to understand opportunities and threats. it looks like an onion

what factors make a general external environment?

economic conditions, sociocultural trends, political climate, technological developments

What is PESTEL analysis?

Political, economic, sociocultural technological, environmental, and legal

what are the porters five forces model?

threat of new entrants bargaining power of suppliers bargaining power of buyers threat of substitutes industry rivalry

what is the concept behind internal environmental analysis?

examining the firms internal strengths and weaknesses to identify areas that contribute to or detract from its competitive advantage

what are strengths?

resources, capabilities, and core competencies that provide the firm with a competitive advantage

what are weaknesses?

areas where the firm is lacking or underperforming, affecting its ability to compete effectively

what is competitive advantage?

gained when a firm has resources or capabilities that are rare, valuable, inimitable, and non-substitutable

what is resource-based theory?

suggests that firms gain a competitive advantage through valuable, rare, and hard-to-imitate resources and capabilities

what is resource dependency theory?

focuses on the firm's dependence on external resources and relations

resources can be seen as "__" that provide firms with flexibility to pursue different strategies in the future

options

_ is a key intangible resource that significantly impacts customer trust and competitive postioning

reputation

what is the value chain?

a tool to analyze internal activities and identify where value is created in the firm

what are the primary activities in the value chain?

directly related to creating and delivering a product or service

what are secondary activities in the value chain?

support primary activities and help the organization function effectively

what is outsourcing?

the process of delegating non-core activities to external organizations?

what are outsourcing decisions?

firms should outsource activities that are not part of their core competencies or that can be done more efficiently by others

strategic management is a __ process of goal setting, resource mobilization, and performance evaluation

continuous

competitive advantage is built on _ resources and capabilities that the firm can _.

unique, leverage

Exam 1 Flashcards

(67 cards)