Questions and Answers
Which of Porter's five competitive forces is demonstrated when Bethany compares prices among eight websites selling designer boots?
Which of Porter's four competitive strategies is involved when a company offers unique products targeting a wide market?
What are Porter's four competitive strategies? (Select all that apply)
When corporate departments implement plans supporting higher-level strategies, they are following a(n) ______ strategy.
Signup and view all the answers
According to Bossidy and Charan, execution is the central part of any company's strategy.
Signup and view all the answers
Companies pursuing a cost-leadership strategy keep costs/prices ______ those of competitors and target a ______ market.
Signup and view all the answers
Based on Smartwater's unique bottle design and health benefits, which of Porter's competitive strategies is it using?
Signup and view all the answers
Of the three core processes of business identified by Bossidy and Charan, which is considered the most important?
Signup and view all the answers
According to Bossidy and Charan, the first core process of business is ______.
Signup and view all the answers
What are functional strategies used to accomplish?
Signup and view all the answers
Aligning people with goals, achieving promised results, and integrating strategies are all part of the ______ process.
Signup and view all the answers
A system of shared beliefs and values aligned with efficient, quality work is called ______ culture.
Signup and view all the answers
According to Bryan Barry, what helps a manager keep a strategic plan on track? (Choose every correct answer.)
Signup and view all the answers
What are the core processes of business identified by Bossidy and Charan? (Choose every correct answer.)
Signup and view all the answers
Why do potential employers value the skill of strategic thinking in job candidates? (Choose every correct answer.)
Signup and view all the answers
Which of Bossidy and Charan's core processes is reflected by Chip's Coffee House offering paid vacation and health insurance?
Signup and view all the answers
Strategic ______ involves monitoring the execution of strategy and taking corrective action when necessary.
Signup and view all the answers
Which 'unwritten' skill is considered essential for job promotion according to Harvard Business Review?
Signup and view all the answers
What are the goals of attending industry conferences? (Choose every correct answer.)
Signup and view all the answers
Environmental factors that an organization may exploit for competitive advantage are called organizational ______.
Signup and view all the answers
A(n) ______ strategy requires little or no change to a company's product or service.
Signup and view all the answers
Michael Porter defined ______ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.
Signup and view all the answers
The three sources from which ______ emerges include having few needs and many customers, broad needs and few customers, and broad needs and many customers.
Signup and view all the answers
Which level of strategic management focuses on the organization as a whole?
Signup and view all the answers
It is common practice today for most small business owners to engage in strategic planning.
Signup and view all the answers
Match the steps in the strategic management process:
Signup and view all the answers
Strategic positioning attempts to achieve sustainable competitive advantage by ______.
Signup and view all the answers
In which step of the strategic-management process does an organization establish the mission and vision statements?
Signup and view all the answers
The second step of the strategic management process involves ______.
Signup and view all the answers
The sources from which strategic position emerges are having ______. (Choose every correct answer)
Signup and view all the answers
Corporate-level strategy does which of the following? (Choose every correct answer)
Signup and view all the answers
Which are characteristics of strategy formulation? (Choose every correct answer)
Signup and view all the answers
To be successful, strategic planning requires a company to have a ______ orientation.
Signup and view all the answers
The 'feedback loop' in the strategic-management process involves ______.
Signup and view all the answers
When other companies cannot duplicate the value provided by a competitor, then the competitor has established a(n) ______ competitive advantage.
Signup and view all the answers
Which stage of the strategic management process is Jordan in if he writes down the long-term goals of his computer repair business?
Signup and view all the answers
In which stage of the strategic management process is Star Software Inc. conducting benchmark activities?
Signup and view all the answers
Within a SWOT analysis, the letter 'S' represents a company's ______.
Signup and view all the answers
Strategy ______ is the process of choosing among different strategies and altering them to best fit the organization's needs.
Signup and view all the answers
When applying SWOT analysis, the reputation of a company is an example of a(n) ______.
Signup and view all the answers
In a SWOT analysis, having outdated manufacturing facilities would be an example of a company's ______.
Signup and view all the answers
Luxury Linens Inc. produces the highest thread-count sheets available anywhere; it can be said that Luxury Linens has a(n) ______.
Signup and view all the answers
The skills and capabilities that give an organization special competencies and competitive advantages in executing strategies are called organizational ______.
Signup and view all the answers
Environmental factors that an organization may exploit for competitive advantage are called organizational ______.
Signup and view all the answers
Within a SWOT analysis, the letter 'T' represents a company's ______.
Signup and view all the answers
In addition to value, what characteristics are being addressed in a VRIO analysis? (Choose every correct answer)
Signup and view all the answers
When would a company use a VRIO analysis?
Signup and view all the answers
Precise work processes and high-ranking customer service are examples of organizational ______ in a SWOT analysis.
Signup and view all the answers
Carlos is doing a VRIO analysis; the first question he asks is about minimizing threats from competitors. This question answers which aspect of the VRIO analysis?
Signup and view all the answers
What is an example of an organizational weakness based on a SWOT analysis?
Signup and view all the answers
In a VRIO analysis, what part helped Rohan evaluate offering a pick-up service?
Signup and view all the answers
What is an example of an organizational weakness in SWOT analysis?
Signup and view all the answers
Leonore's Luxury Leather Footwear Corp. conducts a SWOT analysis and predicts an increase in sales; this vision is known as a ______.
Signup and view all the answers
In terms of SWOT analysis, organizational ______ are environmental factors that hinder an organization.
Signup and view all the answers
In a VRIO analysis, Cassandra determined the ______ of delivering food.
Signup and view all the answers
When conducting a VRIO analysis, determining if a resource is controlled by few firms assesses the ______ associated with it.
Signup and view all the answers
A ______ is a vision or projection of the future made following a SWOT analysis.
Signup and view all the answers
The process by which a company compares its performance with other high-performing organizations is known as ______.
Signup and view all the answers
A grand strategy involving expansion of revenues, market share, or employees is known as a ______ strategy.
Signup and view all the answers
A(n) ______ strategy requires little or no change to a company's product or service.
Signup and view all the answers
What does the BCG matrix evaluate? (Choose every correct answer)
Signup and view all the answers
What process does Juanita use to compare her taxi company with others?
Signup and view all the answers
What strategy is American Tile Corp. using when it acquires a company not currently offered?
Signup and view all the answers
Porter's five competitive forces form a model for ______ analysis.
Signup and view all the answers
A business focusing on hiring more employees to reach more customers is pursuing a ______ strategy.
Signup and view all the answers
Sasha had to rethink his menu due to a chain restaurant; this reflects which of Porter's five competitive forces?
Signup and view all the answers
Johnson & Johnson promoted its baby shampoo without changing its formulation; this exemplifies which type of corporate strategy?
Signup and view all the answers
In the BCG matrix, what does business growth rate refer to?
Signup and view all the answers
Pacific Specialty Bikes choosing to pay higher prices reflects which of Porter's competitive forces?
Signup and view all the answers
The strategy of moving into new lines of business is called ______.
Signup and view all the answers
The Internet has increased consumer's ability to negotiate prices; which of Porter's competitive forces does this demonstrate?
Signup and view all the answers
Which of the following represent competitive forces used in Porter's model for industry analysis? (Choose every correct answer)
Signup and view all the answers
Which of Porter's competitive strategies are appropriate when addressing a narrow market? (Choose every correct answer)
Signup and view all the answers
You own a small deli and learn the university may open a Subway franchise; which of Porter's competitive forces does this represent?
Signup and view all the answers
When a company can easily switch suppliers, this indicates that the bargaining power of ______ goes down.
Signup and view all the answers
Dell tries to have the lowest prices; this would be an example of the ______ strategy.
Signup and view all the answers
Study Notes
Strategic Management Concepts
- A stability strategy requires minimal changes to a company's products or services.
- Strategic positioning, defined by Michael Porter, aims for sustainable competitive advantage by maintaining the unique traits of a company.
- The sources for deriving a strategic position include having few needs with many customers, broad needs with few customers, and broad needs with many customers.
Levels of Strategic Management
- Corporate-level strategy oversees the organization as a whole, contrasting with functional and business-level strategies.
Strategic Management Process
- The steps in the strategic management process include establishing mission and vision statements, assessing current reality, formulating strategies, executing strategies, and maintaining strategic control.
Competitive Advantage
- A sustainable competitive advantage exists when competitors cannot replicate the value a company provides.
- In SWOT analysis, internal strengths and weaknesses help evaluate an organization's capacity against external threats and opportunities.
SWOT Analysis
- The "S" stands for strengths, highlighting what a company does particularly well.
- The "W" represents weaknesses, identifying areas that require improvement, like outdated technology or inferior product quality.
- Opportunities within SWOT analysis are external factors an organization can exploit for gaining an advantage.
- Threats indicate external challenges that might impede a company's success.
VRIO Framework
- VRIO analysis assesses:
- Value: Does the resource or capability help in minimizing competitive threats?
- Rarity: Is the resource controlled by few or no firms?
- Imitability: Can competitors easily replicate the resource or capability?
- Organization: Is the firm organized to exploit the resource effectively?
Benchmarking and Competitive Forces
- Benchmarking involves measuring performance against the best in the industry.
- Porter's five competitive forces include:
- Threat of substitute products or services
- Rivalry among competitors
- Threats of new entrants
- Bargaining power of suppliers
- Bargaining power of buyers, which increases with consumer's ability to compare prices easily.
Growth and Diversification Strategies
- A growth strategy focuses on increasing sales revenue, market share, or employee count.
- Diversification involves entering new lines of business or markets to reduce risk.
- Companies pursuing a cost-leadership strategy aim to keep prices below competitors while targeting a broad market segment.
Competitive Strategies
- Key strategies:
- Cost-focus targets a narrow market with lower prices.
- Focused-differentiation offers unique products at higher values within a narrow market.
- The differentiation strategy aims to deliver superior value in a wide market.
Execution and Long-term Planning
- Successful strategic planning requires a long-term orientation and is typically a time-consuming but critical process.
- Effective execution is pivotal; it aligns lower-level functional strategies with higher-level goals, emphasizing the importance of each departmental contribution.### Competitive Strategies
- The company employs differentiation as a competitive strategy, focusing on unique offerings to stand out in the market.
Core Processes of Business
- People is the most critical core process according to Bossidy and Charan, essential for organizational success.
- First core process of business identified is also people, emphasizing the importance of human resources in strategic execution.
Functional Strategies
- Functional strategies are fundamental for putting strategic plans into effect, ensuring alignment with overall business goals.
Execution Process
- Successful execution involves aligning people with goals, achieving results, and integrating strategy with reality.
Organizational Culture
- Organizational culture consists of shared beliefs and values critical for maintaining efficiency and quality work.
Managerial Strategies
- Essential strategies for keeping a strategic plan on track include staying focused, engaging people, keeping it simple, and keeping moving.
Core Processes Identified by Bossidy and Charan
- The core processes consist of strategy, people, and operations, crucial for effective management.
Valued Skills in Job Candidates
- Employers value strategic thinking in candidates because it enables quick recognition of opportunities, promotes a global mindset, and enhances informed decision-making.
Employee Retention Strategies
- Chip's Coffee House focuses on people by offering benefits like paid vacation and health insurance to retain staff.
Strategic Knowledge
- Strategic thinkers should possess a knowledge base shaped like a "T," where the top represents breadth of knowledge and the stem indicates depth of expertise.
Preference for Visioning
- Executives often prefer visioning over execution because it is perceived as more exciting, driving creativity and innovation.
Strategic Control
- Strategic control focuses on monitoring and correcting strategy execution as needed, ensuring alignment with organizational objectives.
Essential Job Skills
- Strategic thinking is regarded as an essential "unwritten" skill by the Harvard Business Review for career advancement.
Goals of Attending Industry Conferences
- Attending industry conferences serves to learn about the industry and make industry contacts, building networks and knowledge for career growth.
Organizational Opportunities
- Opportunities are the favorable environmental factors an organization can exploit for competitive advantage, crucial for strategic planning.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on chapter 6 from MGMT 3013 with these flashcards. Explore key concepts such as stability strategies and strategic positioning. Perfect for reinforcing your understanding of competitive advantage and management principles.
