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business p4 > strategic management > Flashcards

strategic management Flashcards

1
Q

business strategy

A

a long term plan of action for the whole organization, designed to acheive a particular goal

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2
Q

factors affecting business strategy

A

resources available
strengths of business
competitive environment
objectives

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3
Q

strategic management

A

Strategic management is a process for developing and enacting plans to reach a long-term goal that takes into account internal variables and external factors.

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4
Q

stages of strategic management

A

analysis
choice
implementation

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5
Q

strategic analysis

A

it is about looking in detail at the organization’s current position and what is happening now and what might happen in the future and then making sure that its long-term plans and strategies fit in with this external analysis

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6
Q

purpose of strategic analysis

A

effective strategic analysis will lead to clearer and more relevant business goals, better quality strategic decisions, and a less risky future for a business, as it should be better prepared for the future

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7
Q

strategic choice

A

strategic choice is the decision to select from among the startegies considered, the strategy which will best meet the enterprise objectives

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8
Q

purpose of strategic choice

A

Strategic choice is a key tool to drive business growth. It helps figure out the best way of achieving a business objective, provided an organization has a decision-making process that involves a well-defined set of policies that must be followed by all

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9
Q

strategic implementation

A

the process of allocating and controlling resources to support the chosen strategies. without successful strategic implementation, there can be no effective change within the organization

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10
Q

factors to consider within the strategic implementation

A
  • plan of action to deal with change
  • adequate resources to make the changes happen
    well-motivated staff who want the change to happen successfully
  • appropriate business culture and leadership style
    that allows the change to be implemented with wide-ranging support
  • control and review system to monitor the firm’s progress towards the desired final objective
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11
Q

SWOT analysis
- strenghts
- weaknesses
- opportunities
- threats

A

a form of strategic management that identifies and analyses the main internal strengths and weaknesses and external opportunities and threats that will influence the future direction and success of the business

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12
Q

strengths ( internal factor)

A

These are the internal factors of a business that
can be looked upon as real advantages. These could be used
as a basis for developing a competitive advantage. They might
include: experienced management, product patents, a loyal
workforce etc

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13
Q

weaknesses ( internal factor)

A

These are the internal factors of a business
that can be seen as negative factors. It also includes the factors that cause losses, hardship, disputes, and complaints for a business. In some cases, these can be the flip side of strengths.
weaknesses might include a poorly trained workforce, limited production capacity, etc

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14
Q

opportunities ( external factor )

A

These are the potential areas for the expansion of the business and future profits. because of its strengths or because of the elimination of its weaknesses.

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15
Q

threats ( external factor)

A

Threats to a business arise from the activities of competitors and from failing to take opportunities or to build on successes. Threats also come from complacency, a lack of rigor, and from falling profits, perhaps due to rising costs.

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16
Q

common issues in SWOT

A

check table 38.1 pg 545

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17
Q

benefits and limitations of SWOT

A

check pg 206 of the revision guide

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18
Q

PEST ANALYSIS ( check PowerPoint theme3 business objectives )
- Political
- Economic
- Social
- Technology

A

the strategic analysis of a firm’s macro-
environment, including political, economic, social and technological factors.

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19
Q

external influences

A

Any factor that is outside a business’ control that would have an impact on how the business conducts itself

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20
Q

porters five forces
(check PowerPoint theme3 business objectives)

A

checkbook pg 550

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21
Q

porters five forces
( look at the diagram on pg 550)

A

● rivalry (it is based on the other 4 and is at the center )
● supplier power
● buyer power
● BARRIERS TO ENTRY
● THREAT OF SUBSTITUTES.

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22
Q

the five forces
( explanation of five forces on pg 550)

A

The business environment which contains these forces is known as the micro or competitive environment.

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23
Q

the benefit of porters model

A

the benefit of Porter’s model is that it enables managers to think about the current competitive structure of their industry in a structured and logical way. It is usually regarded as a good starting point for further analysis.

24
Q

limitations of porters Model #1

A

it analyses an industry at just one moment in time – static analysis – and many industries are changing very rapidly due to, for example, globalization and technological
changes

25
Q

limitations of porters Model #2

A

the model can become very complex when trying to use it to analyze many modern industries with joint ventures, multiple product groups, and different market
segments within the same industry – which have their own competitive forces.

26
Q

Core competence

A

Core competencies are the collective learning in the organisation, especially how to coordinate diverse production
skills and integrate multiple streams of technologies; they are the things that an organization does extremely well and
therefore its strategy should be based on this.

27
Q

a core competence should:

A

■ provide recognizable benefits to consumers
■ not be easy for other firms to copy, e.g. a patented design
■ be applicable to a range of different products and markets.

28
Q

Core products

A

core competencies lead to the development of core products. Core products are not necessarily sold to final consumers. Instead, they are used to produce a large number of end-user products.

29
Q

core competence framework
(check screenshot)

A

Focusing on the customer
Using evidence to make decisions
Planning and managing resources
Working as a team

30
Q

Ansof ’s matrix: fig in pg 557

A

a model used to show the degree of
the risk associated with the four growth strategies of market penetration, market development, product development
and diversification.

31
Q

Market penetration:

A

achieving higher market shares inexisting markets with existing products.

32
Q

Product development:

A

the development and sale of new products or new developments of existing products in existing markets.

33
Q

Market development:

A

the strategy of selling existing products in new markets.

34
Q

Diversification:

A

the process of selling different, unrelated goods or services in new markets.

35
Q

limitation of Ansof ’s analysis

A

It only considers two main factors in the strategic analysis of a business’s options – it is important to consider SWOT and PEST analysis too in order to give a more complete picture. Recommendations based purely on Ansof would tend to lack depth and hard environmental evidence.

36
Q

Force-field analysis

A

technique for identifying and
analyzing the positive factors that support a decision (‘driving forces’) and the negative factors that constrain it (‘restraining forces’).

37
Q

conducting a Force-field analysis

A

pg 559
consider the driving forces and restraining forces (fig 39.2)

38
Q

limitation of force fled analysis

A

two managers independently undertaking the same force-field analysis could arrive at rather different values for the forces and, consequently, propose very different decisions based on their assessments.

39
Q

decision tree

A

tries to estimate the possible outcomes of different courses of action and work out the likelihood of these occurring to select the correct option. A decision tree is a mathematical model which can be used
by managers to help them make the right decision.

40
Q

Expected value:

A

the likely financial result of an outcome = probability * forecast economic return

41
Q

constructing a decision tree
pg 215 and 216 of the revision book

A

information required
methods of construction
calculating expected values

42
Q

Limitations and Strength of Decision Tree

A

pg 216 of the revision book
pg 564 of course book

43
Q

Corporate plan:

A

this is a methodical plan containing
details of the organization’s central objectives and the strategies to be followed to achieve them.

44
Q

importance and limitations of corporate plans

A

pg 220 of the revision book
pg 570and 571 of course book

45
Q

corporate culture
pg 571-575

A

the values, attitudes, and beliefs of
the people working in an organization that controls the way they interact with each other and with external stakeholders
groups.

46
Q

Contingency plan:

A

preparing an organization’s resources
for unlikely events.

47
Q

contingency planning and crisis management

A

1 identify the potential disasters that could affect the business

  1. Assess the likelihood of these occurring
  2. minimize the potential impact of crises
  3. plan for continued operations of the business
48
Q

mission statement

A

a statement of the business’s core purpose and focus, phrased in a way to motivate employees and stimulate interest by outside groups.

49
Q

vision statement

A

a statement of what the organization would like to achieve or accomplish in the long term.

50
Q

main types of the corporate culture
(explanation in the book)

A

power culture
role culture
person culture
task culture
entrepreneurial culture

51
Q

power culture

A

concentrating power among just a few people

52
Q

role culture

A

each member of staff has a clearly defined job title and role

53
Q

task culture

A

based on cooperation and teamwork

54
Q

person culture

A

when individuals are given the freedom to express themselves fully and make decisions for themselves

55
Q

entrepreneurial culture

A

this encourages management and workers to take risks, come up with new ideas, and test out new business ventures

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