lec 5: Strategic Management

Question 1

what is meant strategies?

Answer 1

the decisions and actions that determine the long-run performance for organization.

Question 2

what is meant strategic management?

Answer 2

process that manages do to develop an organization’s strategies.

Question 3

why is strategic management important?

Answer 3

(RRC)
- results in higher organization performs.
-requires managers to examine and adapt to business environment changes.
- coordinates diverse organization unit.

Question 4

strategic management process

Answer 4

planning
implementation
evaluation

Question 5

planning in strategic management process contains:

Answer 5

1. identify organization’s current mission, goals and strategies
   SWOT analysis:
   2 - external analysis: opportunities, threats
   3- internal analysis:
   strengths, weaknesses
2. formulate strategies

Question 6

implementation in strategic management process contains:

Answer 6

5. implement strategies

Question 7

evaluation in strategic management process contains:

Answer 7

6. evaluate results

Question 8

what is meant by mission?

Answer 8

a statement of purpose of an organization.

Question 9

what is meant by goals?

Answer 9

measurable performance targets that sets the foundation for further planning.

Question 10

what is meant by external analysis?

Answer 10

environmental scanning of specific and general environments

Question 11

why is external analysis important?

Answer 11

it focuses on identifying opportunities and threats.

Question 12

what is meant by opportunities?

Answer 12

external factors in business or general environments that are likely to contribute to the success of the organization.

Question 13

what is meant by threats?

Answer 13

external factors that you have no control over and could affect the organization negatively.

Question 14

what is meant by internal analysis?

Answer 14

assessing organization resources, capabilities, and activities.

Question 15

what is meant by weaknesses?

Answer 15

can place the firm at a competitive disadvantages.

Question 16

why is internal analysis important?

Answer 16

• analyzing financial and physical assets.
  -assessing intangible assets(employee’s skills, culture, corporate reputation).

Question 17

what is meant by SWOT?

Answer 17

S: strengths
W:weaknesses
O:opportunities
T: threats
its a framework that analysis the org’s internal strengths and weaknesses and the external environment

Question 18

what to consider while formulating strategies?

Answer 18

1. develop and evaluate strategic alternatives.
2. select appropriate strategies for all levels in the organization that provide relative advantages over competitors
3. match organizational strengths to environmental opportunities
4. correct weakness and guard against threats

Question 19

how to achieve effective strategy implementation?

Answer 19

by matching organizational structure and activities to its requirements.

Question 20

why is step6: evaluate results is important?

Answer 20

to check how effective the strategy implemented was

Question 21

what are the types of organizational strategies?

Answer 21

1. competitive
2. competitive
3. functional

Question 22

what is meant by corporate strategy?

Answer 22

specifics what business a company is in or wants to be in and what it wants to do with those businesses.

Question 23

types of corporate strategy

Answer 23

1. growth: expansion into new products and markets.
2. stability: maintenance of the status quo
3. renewal: examination of organization weaknesses that are leading to performance declines.

Question 24

types of growth strategy

Answer 24

1. concentration
2. vertical integration
3. horizontal integration
4. diversification

Question 25

what is concentration?

Answer 25

focusing on a primary line of business and increase number of products offered or market served.

Question 26

what is vertical integration?

Answer 26

- backward vertical integration: attempting to gain control of inputs -forward vertical integration: attempting to gain control of outputs through control of the distribution channel

Question 27

what is horizontal integration?

Answer 27

combining options with another competitor in the same industry to increase competitive strengths and lower competition.

Question 28

what is diversification?

Answer 28

diversifying products or services in either, related or unrelated industries

Question 29

what is stability strategy?

Answer 29

maintaining a status quo to deal with uncertainty of a dynamic environment.

Question 30

what is renewal strategies?

Answer 30

developing strategies to counter organization weaknesses that are leading to performance declines.