Finals Reviewer Flashcards by Rochelle Joy A. Macayan

It is a set of managerial decisions and actions
that determines the long run performance of a
corporation.

STRATEGIC MANAGEMENT

I- Introduction to Strategic Management

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BASIC MODEL OF STRATEGIC MANAGEMENT

monitoring, evaluating, and disseminating information from internal and external environments to key people within the corporation

Environmental Scanning

I- Introduction to Strategic Management

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BASIC MODEL OF STRATEGIC MANAGEMENT

development of long-range plans for the effective management of environmental opportunities and threats in light of corporate strengths and weaknesses (SWOT)

Strategy Formulation

I- Introduction to Strategic Management

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THREE TYPES OF STRATEGY

Describes a company’s overall direction in terms of its general attitude toward growth and the management of its various businesses and product lines

Corporate Strategy

I- Introduction to Strategic Management

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THREE TYPES OF STRATEGY

Occurs at the business unit or product level, and it emphasizes the improvement of the competitive position of a corperation’s products or services in the specific industry served by that business unit

Business Strategy

I- Introduction to Strategic Management

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THREE TYPES OF STRATEGY

the approach taken by a functional area to achieve corporate and business unit objectives or strategies by maximizing resource productivity.

Functional Strategy

I- Introduction to Strategic Management

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A process by which strategies and policies are put into action through the development of programs, budgets, and procedures

Strategy Implementation

I- Introduction to Strategic Management

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Strategy Implementation

a statement of activities or steps needed to accomplish a single-use plan

Programs

I- Introduction to Strategic Management

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Strategy Implementation

a detailed cost of each program

Budget

I- Introduction to Strategic Management

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Strategy Implementation

are a system of sequential steps or techniques that describe in detail how a particular task or job is to be done

Procedures

I- Introduction to Strategic Management

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A process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance

Evaluation and Control

I- Introduction to Strategic Management

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a category of firms based on a common
strategic orientation and a combination of structure, culture &
processes consistent with that strategy.

Strategic Types

Scanning The Environment

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Strategic Types»4 CATEGORIES / GENERAL TYPES

companies with a limited product line that
focus on improving the efficiency of their existing
operations.

Defenders

Scanning The Environment

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Strategic Types»4 CATEGORIES / GENERAL TYPES

companies with fairly broad product
lines that focus on product innovation and market
opportunities

Prospectors

Scanning The Environment

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Strategic Types»4 CATEGORIES / GENERAL TYPES

are corporations that operate in at
least two different product-market areas.

Analyzers

Scanning The Environment

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Strategic Types»4 CATEGORIES / GENERAL TYPES

are corporations that lack a consistent
strategy-structure-culture relationship.

Reactors

Scanning The Environment

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FORECASTING TECHNIQUES

the extension of present trends into the
future.

Extrapolation

Scanning The Environment

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FORECASTING TECHNIQUES

in which separated experts
independently assess the likelihoods of specified events.

Delphi Technique

Scanning The Environment

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FORECASTING TECHNIQUES

a recent forecasting technique
enabled by easy access to the internet.

Prediction Markets

Scanning The Environment

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FORECASTING TECHNIQUES

scenarios are focused descriptions of
different likely future presented in a narrative fashion

Scenario Writing

Scanning The Environment

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an organization’s assets

Resources

III – INTERNAL SCANNING & ORGANIZATIONAL ANALYSIS

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Resources – an organization’s assets (2)

Tangible assets
Intangible assets

III – INTERNAL SCANNING & ORGANIZATIONAL ANALYSIS

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refer to a corporation’s ability to exploit its
resources.

Capabilities

III – INTERNAL SCANNING & ORGANIZATIONAL ANALYSIS

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is a cross functional integration and
coordination of capabilities.

Competency

III – INTERNAL SCANNING & ORGANIZATIONAL ANALYSIS

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is a company’s method for making money in the current business environment

BUSINESS MODEL ## Footnote III – INTERNAL SCANNING & ORGANIZATIONAL ANALYSIS

# BUSINESS MODEL a company offers specialized products / services to market niches that are too small to worthwhile to large competitors but have the potential to grow quickly.

Entrepreneurial Model ## Footnote III – INTERNAL SCANNING & ORGANIZATIONAL ANALYSIS

# BUSINESS MODEL offers its product free in order to make money on advertising.

Advertising Model ## Footnote III – INTERNAL SCANNING & ORGANIZATIONAL ANALYSIS

# BUSINESS MODEL a firm acts as an intermediary to connect multiple sellers to multiple buyers.

Switchboard Model ## Footnote III – INTERNAL SCANNING & ORGANIZATIONAL ANALYSIS

to gain competitive advantage with an industry by working with other firms

Cooperative Strategies ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# Cooperative Strategies is the active cooperation of firms within an industry to reduce output and raise prices in order to get around the normal economic law of supply and demand.

Collusion ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# Cooperative Strategies is a long term cooperative arrangement between two or more independent firms or business units that engage in business activities for mutual economic gain.

Strategic Alliances ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES it grows by making its own supplies and / by distributing its own products.

Vertical Growth ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Vertical Growth seeking ownership or increased control of firm’s suppliers.

Backward integration ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Vertical Growth gaining ownership or increased control over distributors or retailers.

Forward integration ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Vertical Growth a firm internally makes 100% of its key supplies and completely control its distributors.

Full Integration ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Vertical Growth a firm internally produces less than half of its own requirements and buys the rest from outside suppliers.

Taper Integration (concurrent sourcing) ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Vertical Growth a company does not make any of its key supplies but purchases most of its requirements from outside suppliers that are under its partial control.

Quasi-Integration ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Vertical Growth are agreements between two firms to provide agreed upon goods and services to each other for a specified period of time.

Long Term Contracts ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration expanding its operations into other geographic locations and / or by increasing the range of products & services offered to current markets.

Horizontal Growth ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Horizontal Growth shipping goods produced in the company’s home country to other countries for marketing.

Exporting ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Horizontal Growth the licensing firm grants rights to another firm in the host country to produce and sell a product.

Licensing ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Horizontal Growth the franchiser grants rights to another company to open a retail store using the franchiser’s name and operating system

Franchising ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Horizontal Growth between a foreign corporation & a domestic company is the most popular strategy used to enter a new country.

Joint Ventures ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Horizontal Growth purchasing another company.

Acquisition ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Horizontal Growth the company doesn’t want to purchase another company’s problems along with its assets and build its own manufacturing plant and distribution system.

Greenfield Development ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Horizontal Growth process of combining the higher labor skills and technology available in developed countries with the lower cost.

Production Sharing ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Horizontal Growth are typically contracts for the construction of operating facilities in exchange for a fee.

Turnkey Operations ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC GROWTH STRATEGIES>>Concentration>>Horizontal Growth corporation can use some of its personnel to assist a firm in a host country for a specified fee and period of time.

Management Contracts ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

happens when opportunities for growth depleted.

Diversification Strategies ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC DIVERSIFICATION STRATEGIES by focusing on its distinctive competence & uses it for diversification.

Concentric Diversification ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 BASIC DIVERSIFICATION STRATEGIES diversifying to an industry unrelated to its current one.

Conglomerate Diversification ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

continuing its current activities without any significant change in direction.

STABILITY STRATEGIES ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# STABILITY STRATEGIES an opportunity to rest before continuing a growth or retrenchment strategy.

Pause/ proceed with caution strategy ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# STABILITY STRATEGIES is a decision to do nothing new

No-change Strategy ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# STABILITY STRATEGIES is a decision to do nothing new in a worsening situation but instead to act as though the company’s problems are only temporary.

Profit Strategy ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

it is applicable when it has a weak competitive position in some or all of its product lines resulting in poor performance.

RETRENCHMENT STRATEGIES ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# RETRENCHMENT STRATEGIES emphasizes the improvement of operational efficiency & its probably most appropriate when a corporation’s problems are pervasive but not yet critical.

Turn Around Strategy ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# RETRENCHMENT STRATEGIES involves giving-up independence in exchange for security.

Captive Company Strategy ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# RETRENCHMENT STRATEGIES the corporation has multiple business lines & it chooses to sell off a division with low growth potential.

Sell out / Divestment Strategy ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# RETRENCHMENT STRATEGIES involves giving-up the management of the firm to the courts in return for some settlement of the corporation’s obligations.

Bankruptcy/ Liquidation Strategy ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

top management views its product lines & business units as a series of investments from which it express a profitable return.

PORTFOLIO ANALYSIS ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

ADVANTAGES OF PORTFOLIO ANALYSIS

It encourages top management to evaluate each of the corporation’s businesses individually & to set objectives and allocate resources for each. It stimulates the use of externally oriented data to supplement management’s judgment. It raises the issue of cash flow availability for use in expansion & growth. ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

it views a corporation in terms of resources & capabilities that can be used to build business unit value as well as generate synergies across business units.

CORPORATE PARENTING ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# CORPORATE PARENTING 3 ANALYTICAL STEPS IN DEVELOPING A CORPORATE PARENTING STRATEGY

Examine each business unit in terms of its strategic factors. Examine each business unit in terms of areas in which performance can be improved. Analyze how well the parent corporation fits with the business unit. ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 Generic Competitive Strategies by Michael Porter is the ability of a company or a business unit to design, produce and market a comparable product more efficiently than its competitors.

Lower Cost Strategy ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# 2 Generic Competitive Strategies by Michael Porter is the ability of a company to provide unique and superior value to the buyer in terms of product quality, special features or after sales service

Differentiation Strategy ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

is a specific operating plan that details how a strategy is to be implemented in terms of when & where it is to be put into action.

TACTICS ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# TACTICS first mover/pioneer that establish a reputation as an industry leader.

Timing Tactic ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# TACTICS deals with where a company implement a strategy.

Market Location Tactics ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# METHODS USED TO ATTACK COMPETITOR’S POSITION the attacking firm goes head to head with its competitor.

Frontal Assault ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# METHODS USED TO ATTACK COMPETITOR’S POSITION a firm may attack a part of the market where the competitor is weak.

Flacking Maneuver ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# METHODS USED TO ATTACK COMPETITOR’S POSITION this tactic attempts to cut the market out from under the established defender by offering a new type of product that makes the competitor’s product unnecessary.

Bypass attack ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# METHODS USED TO ATTACK COMPETITOR’S POSITION it occurs as an attacking company or unit encircle’s the competitor’s position in terms of products or market or both.

Encirclement ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# METHODS USED TO ATTACK COMPETITOR’S POSITION It accepts small gains and avoid pushing the establish competitor to the point that it must respond/else lose face.

Guerilla warfare ## Footnote STRATEGY FORMULATION: CORPORATE STRATEGY

# CHANGING STRUCTURAL CHARACTERISTICS OF MODERN CARE OLD: One large corporation NEW: ?

Mini business units & cooperative relationship ## Footnote VII. A- STRATEGY IMPLEMENTATION

# CHANGING STRUCTURAL CHARACTERISTICS OF MODERN CARE OLD: Vertical communication NEW: ?

Horizontal communication ## Footnote VII. A- STRATEGY IMPLEMENTATION

# CHANGING STRUCTURAL CHARACTERISTICS OF MODERN CARE OLD: Centralized, top-down decision making NEW: ?

Decentralized, paticipative decision making ## Footnote VII. A- STRATEGY IMPLEMENTATION

# CHANGING STRUCTURAL CHARACTERISTICS OF MODERN CARE OLD: Vertical integration NEW: ?

Outsourcing & virtual organization ## Footnote VII. A- STRATEGY IMPLEMENTATION

# CHANGING STRUCTURAL CHARACTERISTICS OF MODERN CARE OLD: Work / quality teams NEW: ?

Autonomous work teams ## Footnote VII. A- STRATEGY IMPLEMENTATION

# CHANGING STRUCTURAL CHARACTERISTICS OF MODERN CARE OLD: Functional work teams NEW: ?

Cross functional work teams ## Footnote VII. A- STRATEGY IMPLEMENTATION

# CHANGING STRUCTURAL CHARACTERISTICS OF MODERN CARE OLD: Minimal training NEW: ?

Extensive training ## Footnote VII. A- STRATEGY IMPLEMENTATION

# CHANGING STRUCTURAL CHARACTERISTICS OF MODERN CARE OLD: Specialized job design focused on individuals NEW: ?

Value chain team focused job design ## Footnote VII. A- STRATEGY IMPLEMENTATION

# ADVANCED TYPES OF ORGANIZATIONAL STRUCTURES functional & product forms are combined simultaneously at the same level of the org.

Matrix Structure ## Footnote VII. A- STRATEGY IMPLEMENTATION

# ADVANCED TYPES OF ORGANIZATIONAL STRUCTURES is a series of independent firms or business units linked together by computers in an information system that designs, produces, and markets a product or service.

Network Structure/Virtual structure ## Footnote VII. A- STRATEGY IMPLEMENTATION

is the radical redesign of business processes to achieve major gains in cost, service or time

Reengineering ## Footnote VII. A- STRATEGY IMPLEMENTATION

is an analytical method for achieving near perfect results on a production line.

Six Sigma ## Footnote VII. A- STRATEGY IMPLEMENTATION

refers to the study of individual tasks in an attempt to make them more relevant to the company and to the employee.

Job Design ## Footnote VII. A- STRATEGY IMPLEMENTATION

# JOB DESIGN TECHNIQUES combining tasks to give a worker more of the same type of duties to perform.

Job enlargement ## Footnote VII. A- STRATEGY IMPLEMENTATION

# JOB DESIGN TECHNIQUES moving workers through several jobs to increase variety.

Job Rotation ## Footnote VII. A- STRATEGY IMPLEMENTATION

# JOB DESIGN TECHNIQUES altering the jobs by giving the worker more autonomy & control over activities.

Job Enrichment ## Footnote VII. A- STRATEGY IMPLEMENTATION

can be established to focus on actual performance results, activities that generate the performance or on resources that are used in performance.

Controls ## Footnote EVALUATION & CONTROL IN STRATEGIC MANAGEMENT

# TYPES OF CONTROL It is a preventive control such as policy and operational manual.

Feedforward control ## Footnote EVALUATION & CONTROL IN STRATEGIC MANAGEMENT

# TYPES OF CONTROL control occurs when the activity is still in the process

Concurrent control ## Footnote EVALUATION & CONTROL IN STRATEGIC MANAGEMENT

# TYPES OF CONTROL Control that takes place after an activity to evaluate results and make corrections. | Source: Perplexity

Feedback control ## Footnote EVALUATION & CONTROL IN STRATEGIC MANAGEMENT

# Mission Statement 9 components of a Mission Statement

CUSTOMERS PRODUCTS/SERVICES MARKETS TECHNOLOGY CONCERN FOR SURVIVAL/GROWTH/PROFITABILITY PHILOSOPHY SELF-CONCEPT CONCERN FOR PUBLIC IMAGE CONCERN FOR EMPLOYEES

Finals Reviewer Flashcards

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