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| The Strategic management of an organization entails three ongoing processes: |
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| Analyses, Decisions, and Actions |
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| The environment is the key force in determining organization's succes |
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| The leader is the key force in determining organization's success |
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| Strategic analyses is concerned with what |
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| Vision, Mission, and Strategic objectives, and internal and external environment |
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| represents a destination that is driven by an evoked passion |
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| How to od it successfully. Effective statements incorporate the concept of stakeholder management,suggestions that organizations must respond to multiple constituenceies if are to survive and prosper. should be able to tell what the business is from mission statement |
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| organizations most fundamental reasons to exist |
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| Big, Hairy, Audacious, Goals |
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| What two questions must a leader ask themselves during strategic decisions |
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| 1. How should we compete in those industries 2. what industries should we compete in |
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| What happens during strategic action |
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Definition
| strategies are implemented, necessary resources are designed to bring plan to reality |
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Term
| Key Attributes of Strategic Management |
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Definition
1. Directs the organization toward overall goals and objectives
2.Includes multiple stakeholders in decision making
3.Needs to incorporate short-term and long-term perspectives
4.Recognizes trad-offs b/t efficiency and effectivness |
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| The business process is highly unpredictable. Ex: going to see a movie (intended strat) Turns out the line is too long (Unrealized Strat) So, you modify strat (deliberate Strat) so that an Emergent strategy brings you to the realized strategy to go do something else. |
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Term
| The primary participants in corporate Governance are |
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Definition
1.The Shareholders
2.The Management
3.board of directors |
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Term
| what are 5 prominent stakeholder groups |
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Definition
1.customers 2.employees/managers 3.suppliers (or goods,services, and capital
4.The community at large
5.Owners |
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Term
| What are two alternative perspectives of stackeholder management |
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| management is to look upon the various stakeholders as competing for the attention and resources of the organization. Gain of one is a loss for another Ex:employee wants higher wage which drives down price. |
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| recognizes that stakeholders are dependent upon each other for their success and well-being. There is interdependance among employees, suppliers, customers, shareholders, and the community at large. |
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| What is the triple bottom line |
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| Evaluation of Financial, Social, and environmental performance |
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| What are some key driving forces in the strategic management perspective |
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Definition
| Globalization, technology, and intellectual capital |
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Term
| What are strategic objectives |
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Definition
| used to operationalize the mission statement.provide guidence on how organization can fulfill or move toward "higher goals" |
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Term
| For objectives to be meaningful, they need to satisfy several crieria |
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| 1.Measurable 2.Specific 3.Appropriate 4.Realistic 5.Timely |
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Term
| CHPT2 Managers become environmentally aware by doing three things |
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Definition
| 1.scanning 2.monitoring 3.gathering competitive intelligence |
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| what does environmental scanning consist of |
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Definition
| successful scanning alerts organization to critical trends and events before changes have developed. At times consulting outside study groups for globalization, Time to Market, Shifting Roles and Responsibilities |
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Definition
tracks the evolutionof environmental trends, sequence of envents, or streams of activities.
Ex:A Montel 6 Executive-number of rooms in the budget segment of the industry in the US and the difference b/t avg daily room rate and the Consumer Prince Index |
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Definition
Helps firms define and understand their industry and identify rivals' strengths and weaknesses.
EX: Banks track home loan, auto loan, certificate of deposit, interest rate charged by peers in a given geographic region.(this could lead to unethical behavior like spying) Encyclopaedia Britannica didn't do good competitive intelligence. |
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| Environmental Forecasting |
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Definition
Scanning, monitoring, and competitve intelligence pulled together to provide accurate forcasts about direction, scope, speed, and intensity.
Ex: Motel 6 not wanting to build to few nor too many rooms in certain area |
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| what is scenario analysis |
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| draws on range of disciplines and interests, among them economies, psychology, sociology, and demographics. |
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| military first used tech. which provides worst case scenarios vs best case. Shell Oil held out better during hte 70's oil embargo. |
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| strengths, weaknesses, opportunities, and threats. |
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Term
| Six segments of the General Environment |
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| Demographic, sociocultural, political/legal,technological,economic,and global. |
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Term
| Demographic Segment consists of |
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Definition
root of many changes in society such as aging population, rising or declining affluence, changes in ethnic composition, geographic distribution of populaiton, and disparities in income level.
Ex: aging US pop has had positive effect on the health care industry but a negative impact on the industry that produces diapers and baby food.
Ex:shift in population in US like 13% growth occured in South and West regions. |
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| Sociocultural environemnt consists of |
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Definition
Ex: more women in the workplace
-increase in temporary workers
-greater concern for fitness
-greater concern for environment |
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| Political/Legal Environment consists of |
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Definition
Ex -Americans with Disabilities Act
-Increases in Federal minimum wage
-Sarbanes-Oxley Act |
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| Technological Environment Consists of |
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Definition
Ex: -Genetic engineering
-Emergence of Internet Technology
-Compute-aided design/computer-aided manufacturing
-wireless communication |
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| Economic Environment consists of |
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Definition
Ex: -interest rates
-unemployement
-trends in GDP |
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| Global environment consists of |
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Definition
Ex: -Increasing global trends
-currency exchange rates
-creation of World Trade Organization |
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Term
| Give example of relationship among elements of general environment |
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Definition
| aging pop and pop shift affects (tax policies to provide benefits to increasing number of citizens) political segment (redistribuition of seats in the house, incrases power of some states reduce others) |
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Term
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Definition
| originated in Mexico, spanish word that refers to manufacturing and export assembly plants that are owned by US, Japanese, and European Companies |
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Term
| What are Porter's Five-Forces |
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Definition
1.Threat of new entrants
2.The bargaining power of buyers
3.The bargaining power of suppliers
4.The threat of substitute products and services
5.The intensity of rivalry among competitors in an industry |
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1.Economies of scale,spreading cost of production over the # of units
2.Product Differentiaiton,forces entrants to spend heavily to overcome customer loyalties
3.Captial Requirments
4.Switching Costs
5.Access to Distribution Channels
6.Cost Disadvantages Independent of Scale, derive from gov subsidies,favorable gov policies,proprietary product
Ex: electronic phone book |
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Term
| The Bargaining Power of Buyers Consists of |
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Definition
buyers threaten industry by forcing down prices,bargaining for higher quality or more services, and playing competitors against each other.Buyer group is powerful if...
1.It is concentrated or purchases large volumes relative to seller sales.
2.The products it purchases from the industry are standard or undifferentiated
3.The buyer faces few switching costs
4.It earns low profits
5.The buyers pose a credible threat of backword integration |
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Term
| The threat of substitute products and services |
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Definition
| other products of service that can perform the same function as the industry's offerings. |
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Term
| The Intensity of Rivalry among Competitors in an Industry..is the result of |
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Definition
-numerous or equally balanced competitors
-slow industry growth
-high fixed costs
-lack of differentiation or switching costs
-Capacity augmented in large increments
-high exit barriers
Ex: Viagra vs Cialis(with less side effects) |
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Term
| Give example of a threat of obsolescence faced by the core activities of a firm |
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Definition
| information needed ot purchase a vehicle is on the web. |
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Term
| give an example of the threat of obsolescenece faced by an industry's core assets |
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Definition
| Ex: video rental used to be based on location and selection in stores. Now, video downloads make location obsolete |
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Term
| give example when radical change occurs in a company |
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Definition
| overnight delivery industry like FEDEX experiencing problems with fax, e-mails, and internet |
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Term
| Give example when corps assets are threatend, but core activities are not |
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Definition
| film industry,pharmaceuticals, oil and gas b/c relationship with suppliers is constant |
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Term
| progessive change occurs in industries where neither core assets nore core activities face imminent threat of obsolescence. |
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Definition
| Ex: commercial airline industry and discount retail industry |
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Term
| What are strategic groups, give example |
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Definition
| identifying groups within firms that are more similar than others. Ex:Ferrari can not compete against Toyata/ford/gm etc. |
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Term
| #3 In competitive terms what does value mean |
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Definition
| amount that buyers are willing to pay for what a firm proivides them |
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Term
| IN the value chain what are the five primary activities |
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Definition
| Inbound logistics, Operations, Outbound logistics, Marketing and sales, Service |
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Term
| What are the support activities in the value chain |
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Definition
| General administration, human resource management, technology development, and procurement |
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Term
| List examples of Inbound logistics |
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Definition
associated with receivin, storing, and distributing inputs to product like JIT Ex: all ingredients on counter to make cake
1.location of distribution facilities to minimize shipping times
2.Systems reduce time to send "returns" to suppliers
3.Wharehouse layout and design to increase efficiency |
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Term
| List examples of Operations |
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Definition
| transfering all inputs into the final product form, such as machining, packaging, assembly, testing Ex: mixing all the cake ingrediants. |
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Term
| List examples of Outbound logistics |
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Definition
collecting, storing,and distributing the product or service to buyers including warehousing, material handling, delivery vehicle operation
Ex: cutting cake and storing |
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Definition
| advertising,promotions, sales force, quoting. Key is to convince your channel partners it is in their best interest to carry your product |
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Definition
-quick response to customer needs and emergencies
-ability to furnish replacement parts as required
-Quality of service, personnel, and ongoing training
-Appropriate warranty and guarantee policies |
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Term
| General administration in the value chain consists of |
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Definition
| includes general management, planning, finance, accounting, legal and governmant affairs. Can provide competitive advantage EX: telephone operating company negotiating with regulatory bodies can be valuable. |
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Term
| Human Resource Management consist of |
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Definition
| Recruiting, hiring, training, development, and compensation of all types of personnel. EX: Jet Blue friendly hiring program for talent |
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Term
| Technology development consists of list examples |
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Definition
Performance materials-development of uniquely shaped fibers with very high absorption capability
Control systems-Honeywell developed software using "Self-Learning" algorithms to predict when something might go wrong. |
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| List examples of procurement |
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Definition
Ex: like buying materials to bake a cake
-Ability to make proper lease-versus-buy decisions
-Effective procedures to purchase adversing and media services |
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Term
| Resouce based view of the firm consists of what three resources |
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Definition
| Tangible, Intangible, Organizational Capabilities |
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Term
| give an example of tangible resources |
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Definition
| include the physical and financial assets that an organization uses to create value for its customers. Ex: firms cash, receivables, companys plant, machinery |
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Term
| give an example or two of intangible resources |
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Definition
| includes human resource like capabilities of employees, trust, brand name, reputation with suppliers etc. |
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Term
| Give examples of Orgainzational Capabilities |
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Definition
not specific tangible or intangible assets, but rather the competencies or skills that a firm employes to transform inputs into outputs.
Ex:Gillett's ability to combine several technologies has been key to succes in wet-shaving industry |
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Term
| for a resource to provide a sustainable advantage it must be what four things |
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Definition
| Valuable,Rare,Difficult to imitate,Difficult to substitute |
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Term
| What makes a reource valuable |
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Definition
| when they enable a firm to formulate and implement strategies that improve it efficiency or effectiveness |
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Term
| Having a product that is not easily imitatesd means |
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contrains competition
Ex: Monster.com has easily imitated product b/c other dot coms jump on board.
must maintain physical uniqueness,Path Dependency,Causal Ambiguity,Social Complexity |
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| resources are unique and scarce b/c of all that happened along th epath followed in their development and/or accumulation. Ex: Gerber baby food brand name is potentially inimitable |
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typically beyond the firms ability to systematically manage or influence.
wide variety can be considered
EX: interpersonal relations with managers within the firm, with suppliers and customers |
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