Shared Flashcard Set

Details

Strategic Busines Solutions - BUS 4750
Exam 3 Study Guide
62
Business
Undergraduate 4
12/10/2014

Additional Business Flashcards

 


 

Cards

Term
Define Strategic Management
Definition
the process through which organizations analyze and learn from their internal and external environments, establish strategic direction, create strategies that are intended to help achieve established goal, and execute those strategies, all in an effort to satisfy key organizational stakeholders.
Term
What factors influence the broad environment?
Definition
Sociocultural forces
technological forces
economic forces
political/legal forces
Term
What factors influence the task environment?
Definition
Government agencies/administrators
suppliers
competitors
unions
financial intermediaries
local communities
activist groups
customers
Term
CHAPTER 2: Exhibit 2.5 highlights various stakeholder groups that firms may need to partner with and what partnering tactics firms might use. As an example, what are the partnering tactics that the text states may be appropriate for cooperating with customers?
Definition
Involvement in design teams or in product testing

joint training/service programs

appointments to board of directors
Term
What are the five general categories that internal resources/capabilities fall into?
Definition
Human resources
Physical resources
financial resources
knowledge and learning resources
General organizational resources
Term
What makes a resource or capability a core competence?
Definition
If the business has the following characteristics and also can apply them to more than one business area within the same company:

1. The resources or capabilities are valuable
2. the resources or capabilities are unique
3. The organization is suited to exploitation of the resource or capability
4. the firm's managers are aware of the potential of the resource or capability to lead to a competitive advantage and have taken steps to realize the advantage.
5. the resources are difficult or expensive to imitate
6. There are no readily available substitutes.
Term
What are some examples of human resources?
Definition
superior CEO characteristics

Governance/board of directors
experienced managers

well trained, motivated, loyal employees

special skills and abilities
Term
What are some examples of physical resources
Definition
machinery
superior locations
raw material access
patents, trademarks, secrets
Term
What are some examples of Financial resources?
Definition
strong cash flow

strong balance sheet

capacity to borrow/credit ratings

superior past performance
Term
What are some examples of knowledge and learning resources
Definition
superior technology

strong R&D program

excellent innovation and learning processes
Term
What are some examples of general organizational resources?
Definition
reputation

well-known brands

excellent structure and culture

superior management systems

strong relationships with external stakeholders

excellence in a particular functional area.
Term
What are the primary responsibilities of a CEO?
Definition
1. create or design the organization's purpose, vision, and core values.
2. oversee the creation of policies, strategies, and structure that translate purpose, vision, and core values into business decisions
3. create an environment for organizational learning by serving as a coach, teacher, and facilitator.
4. serve as stewards for their organizations in the sense that they care about the organization and the society in which it operates.
Term
Define the term -strategic direction-
Definition
;established and communicated through tools such as missions, visions, business definitions, value statements, sustainability statements, and codes of ethics.
Term
In agency theory, who are the agents? What is the agency problem?
Definition
The top managers are the agents, and the problems arise when managers attempt to maximize their own self-interests at the expense of shareholders.
Term
What does the book say the relationship is between high performance of the firm and social responsibility?
Definition
high performance allows the firm to be socially responsible and social responsibility leads to high performance
Term
Define two offensive tactics
Definition
Aggressive competition: some firms use their abundant resource positions to overwhelm their rivals by rendering counter-moves ineffective
2. First mover: be the first to develop a product and have your brand associated with the industry.
Term
Can a second mover be successful?
Definition
Yes. They can simply learn from the mistakes of the first-mover and capitalize on the growing market.
Term
What defense tactics designed to prevent?
Definition
Preventing competitors from engaging in particular behaviors
Term
Describe the two major defensive tactics
Definition
Threat of Retaliation: firms may threaten this in an effort to prevent competition from taking actions that ay be damaging to their own competitive position.

Barriers to imitation: using strong brand names, trademarks, patents etc to prevent competition from enjoying a "second-mover" advantage.
Term
What is a multi-domestic approach to business level strategy?
Definition
It involves custom tailoring products and services around individual market needs and may involve conducting the design, assembly, and marketing on a country-by-country or region-by-region basis.
Term
What is a global approach to business level strategy?
Definition
using one undifferentiated product design throughout the world.
Term
What is a transnational approach to business level strategy?
Definition
Combines the efficiencies of the global strategy with the local responsiveness of the multidomestic strategy.
Term
What is a concentrate corporate strategy?
Definition
Engaging a corporate strategy in a single business area (ex. Dominoes, Federal Express, etc.)
Term
What are the four advantages of a concentration strategy?
Definition
1. a single business approach allows an organization to master one business area and industry environment

2. the organization may be in a better position to develop the resources and capabilities necessary to establish a sustainable competitive advantage

3. can prevent the proliferation of management levels and staff functions that often associated with large multi-business firms, and that add overhead costs and limit flexibility.

4. allows a firm to invest its profits back into the business rather than competing with other corporate holdings for investment funds.
Term
What are the four disadvantages of a concentration strategy?
Definition
1. Since the org is dependent on one product they are more susceptible to industry change.

2. Product obsolescence and industry maturity

3. uneven cash flows and profitability

4.may not provide enough challenge or stimulation to managers.
Term
What is vertical integration?
Definition
describes the extent to which a firm is involved in several stages of the industry supply chain
Term
What is raw materials extraction?
Definition
the extraction of the initial raw materials for production such as timber, ore, or crude oil
Term
what is primary manufacturing?
Definition
raw materials are converted to commodities such as wood pulp or iron. Sometimes also involves creation of components that are used to assemble final products such as engines, transmissions and brake systems in automobiles.
Term
what is product manufacturing?
Definition
involves the creation of a product that is in its final form prior to consumption
Term
What are wholesaling and retailing?
Definition
entails channeling final products to retail outlets

sell the products to the end consumer
Term
What are the four types of products in the BCG product portfolio management matrix?
Definition
Stars: high growth- high mkt share
Cash cows: low growth - high market share
Dogs: low growth - low market share
Question marks: high growth - low market share
Term
Well-developed function strategies should have what three characteristics?
Definition
1. Decisions made within each function should be consistent with each other.
2. Decisions made within one function should be consistent with those made in other functions
3. Decisions made within functions should be consistent with the strategies of the business.
Term
Marketing strategy
Definition
the plan for investing marketing efforts and resources to achieve business goals.
Term
Operations Strategy
Definition
the plan for aligning the production or service operations of the firm with the intended business strategies
Term
Research and development strategy
Definition
the priorties for new product and service development, long-range innovation efforts, the role of intellectual property protection and any alliances or partnerships needed to advance innovative goals.
Term
Human Resources Strategy
Definition
approach to recruitment, selection, training, performance evaluating, rewards and other key human resource management practices.
Term
Strategic Business Units
Definition
when an organization is broadly diversified, with several business in its portfolio management may choose to form these with each one incorporating a few businesses that have something in common.
Term
What is the primary purpose of financial strategy?
Definition
to provide the organization with the capital structure and operating funds that are appropriate for implementing growth and competitive strategies, and to do so in a manner that maximizes financial returns to the organization.
Term
What is the purpose of information systems strategy?
Definition
to provide the organization with the technology and systems that are necessary for operating, planning and controlling the business.
Term
What is an ERP system?
Definition
A system created by organizations to manage the flow of information throughout the entire organization.
Term
The ________ specifies the number and types of departments or groups and provides the formal reporting relationships and lines of communication among internal stakeholders.
Definition
formal organizational structure
Term
Administrative inefficiencies, poor service to customers, communication problems, or employee frustrations may indicate a mismatch between what two things?
Definition
strategy and structure
Term
Define a functional structure. Are people grouped on the basis of inputs, outputs, or both in this structure?
Definition
It is organized around the inputs or acitivties that are required to produce products and services, such as marketing, operations, finance and RD; inputs
Term
Define a divisional structure. Are people grouped on the basis of inputs, outputs, or both in this structure?
Definition
organized around the outputs of the organization such as products, customers or geographical region; outputs
Term
Define a matrix structure. When are matrix structures most commonly used?
Definition
combines elements of the functional and divisional structures; commonly used in organizations that experience their workload in the form of projects
Term
What are key characteristics of a network structure?
Definition
- no formal hierarchy
- information center
- communication
- task forces created on ad hoc basis
Term
What is an organization’s culture?
Definition
the system of shared values that guide employees
Term
List 5 factors that can encourage innovation and entrepreneurship within an organization.
Definition
1. Strategic direction that incorporates a strong innovation and entrepreneurship theme.

2. a culture that encourages creative thinking and risk taking

3. top management support of entrepreneurship through example and allocation of resources

4. open communications among levels and areas within the firm, supported by an integrated information system.

5. valuing the ideas of every employees

6. large rewards for internal entrepreneauyrs who create new value.

7. teamwork and collaboration

8. a flat management hierarchy with an emphasis on decentralized decision making

9. organizational champions who can identify a good idea and gather resources needed to turn it into reality.

focus on learning

slack resources available to invest in entr.
Term
Define strategic control system
Definition
a system to support managers in assessing the relevance of the organizations strategy to its progress in the accomplishment of its goals, and when discrepancies do exist, to support areas needing attention
Term
While many firm’s strategic control systems are dominated by financial performance measures, what problems may an exclusive focus on these goals cause?
Definition
managers focusing on short-term profits, sometimes at the expense of long term health of the firm.
Term
What is a “bottom up” control system?
Definition
Term
Define feedback, concurrent and feedforward controls.
Definition
Feedback: provides managers with information concerning outcomes from org activities

Concurrent: provides managers with realtime info about processes and activities so that deviations from plan can be identified before they can affect org results.


Feed forward: helps managers anticipate changes in the external and internal environments, based on analysis of inputs from stakeholders and the broad enviroment
Term
What are the eight characteristics of effective objectives or targets?
Definition
1. They are high enough to be motivating
2. they are realistic
3. they are specific
4. they are measurable
5. they are understood by all affected managers and employees
6. they are set through participative processes
7. feedback on performance is part of the process
8. they cover a specific time frame
Term
What are bureaucratic and clan controls?
Definition
b: they inclued rules, policies and procedures that guide the behavior of members of the org.

C: socialization processes through which an individual comes to appreciate the values and expected behaviors in an org. (orientation)
Term
What is premise control and how does it help the organization avoid situations in which their established strategies and goals are no longer appropriate?
Definition
a type of feedforward control that involves periodically assessing the assumptions or premises that underlie strategic choices. The periodic evaluation of assumptions is a foundation concept in the iterative, ongoing assessment of the environment in strategic management.
Term
What is the difference between downscoping and retrenchment?
Definition
d:involves reducing diversification through divesting nonessential businesses that are not related to the organization's core competencies and capabilities

r: involves tactics such as workforce reductions, closing unprofitable plants, outsources, etc.
Term
Define divestiture.
Definition
the action or process of selling off subsidiary business interests or investments.
Term
What is a LBO?
Definition
(leverage buyout) involve the private purchsae of a business unit by managers, employees, unions or private investors.
Term
According to the text, successfully managing the business cycle _______ ______ ____________ depend on the ability to accurately forecast its movements.
Definition
does not necessarily
Term
The set of capabilities that allows a firm to respond more swiftly than its rivals to key business cycle turning points and movements is referred to as a firm’s ____________ _______________ ________________.
Definition
business cycle orientation
Term
What are the 5 questions you answered under Step 2 of the Team Strategy Worksheet that help a firm define the strategic plan? (Questions in italics.)
Definition
What is your winning aspiration?

Where will you play?

How will you win?

What capabilities must be in place?

What management systems are required?
Term
Where/How should firms look for innovation ideas beyond just creating new products and services (as discussed in the article, “Innovating on the Cheap”? Provide a real-world example of a company or product that has had success innovating on the cheap?
Definition
Rainbird with drip irrigation. save time and effort, resources and less brown spots
Supporting users have an ad free experience!