Management Chapter 6 Essay Flashcards

Study Notes

Strategic Positioning

Aims for sustainable competitive advantage by highlighting distinct company characteristics.
Defined by Porter as performing different activities from rivals or similar activities in unique ways.
Three principles of strategy:
- Creation of unique and valuable positions based on few or broad needs and customer bases.
- Requires trade-offs, necessitating choices on which strategies to pursue or abandon.
- Involves creating "fit" among activities to enhance interaction and reinforcement.

Strategic Management Process

Involves five key steps:
- Establish mission and vision.
- Establish grand strategy.
- Formulate strategic plans.
- Execute strategic plans.
- Maintain strategic control.
The feedback loop is crucial for monitoring progress and enabling quick corrective actions, allowing for adjustments back to earlier process steps when needed.

Common Grand Strategies

Growth Strategy: Focuses on expansion in sales, market share, or customer base. Examples include improving existing products or entering new markets.
Stability Strategy: Involves minimal or no substantial changes. Can be a no-change strategy to manage growth or a little-change strategy for consolidation.
Defensive Strategy: Aims for reduction of efforts, including cost-cutting measures, asset liquidation, phasing out product lines, or declaring bankruptcy.

Strategy Implementation

Refers to executing strategic plans by identifying potential roadblocks and ensuring adequate resources and control systems.
Resistance may arise if employees perceive changes as threatening, particularly with rapid implementations leading to potential delays and plan failures.
Successful implementation requires upper management to engage and sell strategies to middle and supervisory levels, rather than simply announcing them.

Competitive Intelligence

Involves gathering information about competitor activities to anticipate and respond effectively.
Legal means of obtaining intelligence include:
- Analyzing public advertisements and corporate publications.
- Reviewing investor-related materials, such as annual reports.
- Gathering insights from informal sources, including industry gossip and sales personnel.

Situation Analysis

SWOT analysis evaluates internal strengths and weaknesses alongside external opportunities and threats.
Internal environment assesses:
- Organizational strengths, which provide competitive advantages.
- Organizational weaknesses, which can impede strategy execution.

Description

Enhance your understanding of strategic positioning with these flashcards based on Chapter 6 of 'Management: A Practical Approach'. This quiz explores the definition of strategic positioning and the three principles that support it. Perfect for studying key management concepts and theories.