Exam 1 Powerpoints Flashcards
(32 cards)
What are the benefits of strategic management?
- Continuous, systematic approach to scanning the external environment/analyzing the internal environment, formulating. Implementing, and evaluating strategies to attain objectives
- More profitable and Successful
- Identification, prioritization, and exploitation of opportunities
- Favorable attitude towards change
- Efficient allocation f time and resources
- Encourages forward thinking
- Subordinates aid in monitoring and forecasting
- Better group decisions
- Employee empowerment
- Improve communication
What is the Ansoff study?
Firms using strategic mgmt outperformed those that did not on measures like earnings and sales growth
What is the Eatlack & McDonald Study?
CEOs used strategic mgmt had fastest growing companies
What is the The Herold Report?
7 year study that showed strategic planning is a strong indicator a firm’s future success
What is the Karger and Malik Study?
Concluded that mgmt is negligent w/o strategic planning
What is the PIMS Study?
Provides managers with a useful tool for assessing corporate and divisional objectives and strategic choices
What are the three stages of the Strategic-Mgmt Process?
Strategy formulation
Strategy Implementation
Strategy Evaluation
What are the steps in strategy formulation?
Vision & Mission Opportunities and threats Strengths and weaknesses Long-Term Objectives Alternative Strategies Strategy Selection
What is the organization’s vision?
Where are we now, where do we wish to be
What should be done while analyzing the external environment?
Assess opportunities
Identify threats
What should be done while analyzing the internal environment?
Identify functional strengths
Identify functional weakness
What are some characteristics of goals and objectives?
Targeted for results Measurable and quantified over time Reasonable Prioritized Standards/Yardsticks Short/long term goals Specific Translate into workable terms Guidelines
What is the process to crafting strategy?
Intended strategy + Reactive/Adaptive Strategy= Actual Strategy
What is needed for strategy implementation?
Annual Objectives
Structure
Motivate Employees
Resources Allocation
What are the implementation characteristics?
Implement chosen strategy Assign responsibilities Allocate resources Time frames/ Deadlines Direct Activities Polices
What should be done with strategy evaluation?
Review external and internal
Measure Performance
Corrective Action
What do some firms do no strategic planning?
Poor reward structure Waste of time Laziness Content with success Prior bad experience Fear of the unknown Fire-fighting Too expensive Fear of failure Over-confidence Self-Interest Suspicion
What is that dumb ass Peter Drucker quote?
“It is more important to do the right things rather than doing things right”
What is efficiency?
Doing things right
What is effectiveness?
Doing the right things
What is value migration?
The movement of growth and profit opportunities from one industry player to another
What is co-evolution?
The notion that by working with direct competitors, customers, and suppliers, a company can create new businesses, markets, and industries to gain greater competitive advantage
What is business ecosystem?
Companies working cooperatively and competitively to support new products, satisfy costumers, and create the next round of innovation in key market segments
What is white-space opportunity?
New areas of growth possibilities that fall between the crack because they don’t naturally match the skills of existing business units
