Managing Strategically Flashcards

Questions and Answers

Explain the role of strategic management and why it is important.

Need strategies to achieve goals 2. Business model to focus on customer satisfaction and profits 3. Results in higher organizational performance 4. Allows manager to adapt better to uncertain environments 5. Helps with decision making by managers.

What are strategies in the context of organizations?

Plans for how an organization will compete successfully and attract/satisfy customers to achieve goals.

What is a business model?

Strategic design for how a company will profit from different processes.

Explain the role of managers in each of the six strategic management steps.

<ol> <li>Identify the organization's current mission, objectives, and strategies 2. Conduct an internal analysis 3. Conduct an external analysis 4. Formulate strategies 5. Implement strategies 6. Evaluate results.</li> </ol> Signup and view all the answers

What is the mission of a firm?

Firm's reason for being. Signup and view all the answers

What are goals in strategic management?

Foundation for further planning with measurable performance targets (deadline). Signup and view all the answers

What is internal analysis?

Environmental scanning of mission, resources, capabilities, and core competencies. Signup and view all the answers

What is external analysis?

Identification of opportunities and threats. Signup and view all the answers

List ways to implement strategy.

Human resources, information and control systems, leadership, structure. Signup and view all the answers

Describe three types of organizational strategies.

Growth, stability, renewal. Signup and view all the answers

What are growth strategies?

Concentration, vertical integration (backward and forward), horizontal integration, diversification (related and unrelated). Signup and view all the answers

What are renewal strategies?

Retrenchment and turnaround. Signup and view all the answers

What is competitive advantage?

A company's distinct edge, such as quality. Signup and view all the answers

What strategies do organizations use to gain competitive advantage?

Cost leadership, differentiation, focus, customer service, innovation, and first mover. Signup and view all the answers

What are first mover advantages?

Cost and learning benefits. Signup and view all the answers

What determines industry attractiveness and profitability?

Competitive forces. Signup and view all the answers

What are strategic business units?

The single independent businesses of an organization that form their own competitive strategies. Signup and view all the answers

What are competitive forces?

<ol> <li>Threat of new entrants 2. Threat of substitutes 3. Bargaining power of buyers 4. Bargaining power of suppliers 5. Current rivalry.</li> </ol> Signup and view all the answers

Discuss current strategic management issues.

Changing environment requires flexibility. Signup and view all the answers

Study Notes

Role of Strategic Management

Strategic management is essential for setting and achieving organizational goals.
It creates a business model centered on customer satisfaction, leading to profitability.
Facilitates improved organizational performance and adaptability in uncertain environments.
Aids managers in making informed decisions.

Strategies

Strategies outline how an organization competes and attracts customers to fulfill its goals.

Business Model

A business model strategically delineates how a company generates profit through its operations.

Role of Managers in Strategic Management Steps

Identify the mission, objectives, and existing strategies of the organization.
Conduct an internal analysis regarding resources and capabilities.
Perform an external analysis to identify market opportunities and threats.
Formulate effective strategies based on analyses.
Implement the formulated strategies across the organization.
Evaluate outcomes to assess effectiveness and make necessary adjustments.

Mission

A firm's mission defines its fundamental purpose and reason for existence.

Goals

Goals provide measurable performance targets and act as a foundation for planning.

Internal Analysis

Involves scanning the organizational environment for insights into mission, resources, capabilities, and core competencies.

External Analysis

Focuses on identifying external opportunities and potential threats facing the organization.

Ways to Implement Strategy

Key elements include managing human resources, developing information systems, exercising effective leadership, and establishing structural frameworks.

Types of Organizational Strategies

Three principal strategies include growth, stability, and renewal.

Growth Strategies

Concentration focuses on enhancing a primary product.
Vertical integration can be backward (owning suppliers) or forward (owning distributors).
Horizontal integration merges operations with competitors.
Diversification includes related firms (synergistic) and unrelated firms (diverse sectors).

Renewal Strategies

Retrenchment involves scaling back operations, such as layoffs.
Turnaround strategies are enacted to address significant performance issues.

Competitive Advantage

Competitive advantage grants a company a distinctive edge, often rooted in aspects like quality.
Strategies to attain it include cost leadership, differentiation, focus, customer service, innovation, and being the first mover.

First Mover Advantages

Early market entry can lead to cost savings and enhanced learning opportunities.

Industry Attractiveness and Profitability

Determined by competitive forces within the market.

Strategic Business Units

Distinct independent units within an organization that develop their own competitive strategies.

Competitive Forces

Key forces include the threat of new entrants, substitute products, bargaining power of buyers and suppliers, and the intensity of current industry rivalry.

Current Strategic Management Issues

The need for flexibility is driven by a changing business environment, requiring organizations to adapt continually.

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Description

This quiz focuses on key concepts of strategic management. It covers the role of strategic management, its importance, and various strategies that organizations can deploy for competitive advantage. Test your understanding and enhance your knowledge of strategic frameworks and decision-making processes.