lecture 5( strategic management)

Question 1

Strategies

Answer 1

The decisions and actions that determine the long-run performance of an organization

Question 2

Strategic Management

Answer 2

Is the process that managers do to develop an organization’s strategies.

Question 3

Why is strategic management important?

Answer 3

1-It results in higher organizational performance
2-It requires that managers examine and adapt to business environment changes
3-It coordinates diverse organizational units

Question 4

The strategic management process is a six-step process that encompasses

Answer 4

1-identifying the organization’s mission, goals, and strategies
2-swot analysis
3-formulate strategies
4-implement strategies
5-evaluate results

Question 5

Mission

Answer 5

a statement of the purpose of an organization

Question 6

Goals

Answer 6

Measurable performance targets that sets the foundation for further planning

Question 7

Opportunities

Answer 7

External factors in the business environment or general environment that are likely to contribute to the success of the organization

Question 8

Threats

Answer 8

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

Question 9

Strengths

Answer 9

create value for the customer and strengthen the competitive position of the firm.

Question 10

Weaknesses

Answer 10

can place the firm at a competitive disadvantage
Analyzing financial and physical assets is fairly easy, but assessing intangible assets (employee’s skills, culture, corporate reputation) isn’t as easy.

Question 11

Formulating Strategies

Answer 11

Develop and evaluate strategic alternatives.

Select appropriate strategies for all levels in the organization that provide relative advantage over competitors.

Match organizational strengths to environmental opportunities.

Correct weaknesses and guard against threats

Question 12

what are the three types of organizational strategies?

Answer 12

1-corprate
2-competitive
3-functional

Question 13

Corporate Strategy

Answer 13

A corporate strategy is one that specifies what businesses a company is in or wants to be in and what it wants to do with those businesses.

Question 14

Types of Corporate Strategy

Answer 14

1. Growth
2. Stability
3. Renewal

Question 15

Growth

Answer 15

expansion into new products and markets

Question 16

Stability

Answer 16

maintenance of the status quo

Question 17

Renewal

Answer 17

examination of organizational weaknesses that are leading to performance declines

Question 18

Types of Growth Strategy

Answer 18

1-Concentration
2-Vertical Integration
3-Horizontal Integration
4-Diversification

Question 19

Concentration

Answer 19

Focusing on a primary line of business and increasing the number of products offered or markets served

Question 20

Vertical Integration

Answer 20

Backward vertical integration: attempting to gain control of inputs

Forward vertical integration: attempting to gain control of output through control of the distribution channel

Question 21

Horizontal Integration

Answer 21

Combining operations with another competitor in the same industry to increase competitive strengths and lower competition

Question 22

Diversification

Answer 22

Expanding by combining with firms in different, but related industries that are “strategic fits”.

Question 23

Stability Strategy

Answer 23

Managers want to maintain the status quo to deal with the uncertainty of a dynamic environment.

Question 24

Renewal Strategies

Answer 24

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

Question 25

two types of renewal strategy

Answer 25

Retrenchment and Turnaround

Question 26

Retrenchment

Answer 26

Focusing of eliminating non-critical weaknesses and restoring strengths to overcome current performance problems

Question 27

turnaround

Answer 27

Addressing critical long-term performance problems through the use of strong cost elimination measures and large-scale organizational restructuring solutions.

Question 28

BCG Matrix

Answer 28

Considers market share and industry growth rate.

Question 29

whats in the BCG matrix

Answer 29

Cash cows: low growth rate, high market share Stars: high growth rate, high market share Question marks: high growth rate, low market share Dogs: low growth rate, low market share

Question 30

Competitive Strategy

Answer 30

A strategy focused on how organizations will compete in its business.

Question 31

difference of competitive strategies for one business and multi-businesses

Answer 31

For an organization in only one line of business, the competitive strategy describes how it will compete in its primary or main market. For organizations in multiple businesses, Each business can have its own competitive strategy that defines its competitive advantage

Question 32

What is Competitive Advantage

Answer 32

Competitive Advantage sets an organization’s distinctive competitive edge. That distinctive edge comes from the organization’s core competencies because the organization does something that others cannot do or does it better than others can do it.

Question 33

What is Sustained Competitive Advantage

Answer 33

Continuing over time to effectively exploit resources and develop core competencies that enable an organization to keep its edge over its industry competitors.

Question 34

why is it not easy to create a sustainable competitive advantage

Answer 34

due to market instabilities, new technology, and other changes.

Question 35

Types of Competitive Strategies

Answer 35

Cost Leadership Strategy Differentiation Strategy Cost-Focus Strategy Differentiation-Focus Strategy