HR Strategy Exam Flashcards
(25 cards)
strategy
set of goal-directed and integrated actions a firm takes to gain and sustain superior performance relative to competitors; the outcome of strategic management process
good strategy
strategy that enables a firm to achieve superior performance and sustainable competitive advantage relative to its competitors in any competitive situation; consists of 3 elements - diagnosis, guiding policy, and set of coherent actions
diagnosis
element that is part of a good strategy; identify competitive challenge with analysis of internal and external environments; define an organization’s competitive challenge through critical and honest assessment of status quo; part 1 of AFI
guiding policy
element that is part of a good strategy; address competitive challenge with formulation; provides game plan for dealing with competitive challenge identified; part 2 of AFI
set of coherent actions
element that is part of a good strategy; implement firm’s guiding policy; effective implementation through coherent and consistent set of actions; part 3 of AFI
stages of the strategic management process
analysis, formulation, implementation (AFI)
analysis
stage 1 of AFI; analyze the external and internal environment
formulation
stage 2 of AFI; formulate an appropriate business and corporate strategy
implementation
stage 3 of AFI; implement the formulated strategy through structure, culture, and controls
how a company can gain competitive advantage in a competitive industry
a firm must provide EITHER goods or services consumers value more highly than those of its competitors; OR goods or services similar to competitors but at a lower price (differentiation or cost leadership)
first step in gaining competitive advantage
analysis of the external and internal environments (part 1 of AFI); diagnosis to identify the competitive challenge which includes this analysis
strategic commitments
decisions that are costly, have a long-term impact, and are difficult to reverse (contrast with tactical decision which are short-term and can be easily reversed)
T/F: firms should keep their vision statements customer oriented rather than product oriented
true
customer oriented vision
allows companies to adapt to changing environments; defines a business in terms of providing solutions to customer needs
product oriented vision
defines a business in terms of good or service provided; companies are more likely to fail
how strong ethical values benefit a firm
they underlie the vision statement and provide stability to the strategy, laying the groundwork for long term success; once the company is pursuing its vision and mission in its quest for competitive advantage, they serve as guardrails to keep the company on tract
strategic leadership (application question)
executives’ use of power and influence to direct the activities of others when pursuing and org’s goals
power
strategic leader’s ability to influence other org members to do things that they wouldn’t do otherwise
position power
power based on position of authority (CEO)
informal power
power based on skills like persuasion that is used to influence
level 5 manager
executive that builds greatness by combining willpower and humility
corporate strategy
where to compete in the industry, markets, and geography; led by corporate executives at HQ (CEO and others)
business strategy
how to compete (cost leadership, differentiation, and value innovation); led by strategic business units (SBUs) which are standalone divisions of a larger conglomerate, each with their own P&L responsibility (usually have SBU CEOs)
different functions that general managers in strategic business units perform
general managers in SBUs must answer business strategy questions relating to how to compete to achieve superior performance; within the guidelines from corporate headquarters, they formulate an appropriate generic business strategy - cost leadership, differentiation, or value innovation - in their quest for competitive advantage
