Podcast
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 five competitive forces is demonstrated when Bethany compares prices among eight websites selling designer boots?
- Bargaining power of buyers (correct)
- Rivalry among competitors
- Threats of new entrants
- Bargaining power of suppliers
Which of Porter's four competitive strategies is involved when a company offers unique products targeting a wide market?
Which of Porter's four competitive strategies is involved when a company offers unique products targeting a wide market?
- Differentiation strategy (correct)
- Diversification strategy
- Cost-focus strategy
- Cost leadership strategy
What are Porter's four competitive strategies? (Select all that apply)
What are Porter's four competitive strategies? (Select all that apply)
- Related diversification
- Vertical integration
- Cost-focus (correct)
- Differentiation (correct)
- Cost-leadership (correct)
- Focused-differentiation (correct)
When corporate departments implement plans supporting higher-level strategies, they are following a(n) ______ strategy.
When corporate departments implement plans supporting higher-level strategies, they are following a(n) ______ strategy.
According to Bossidy and Charan, execution is the central part of any company's strategy.
According to Bossidy and Charan, execution is the central part of any company's strategy.
Companies pursuing a cost-leadership strategy keep costs/prices ______ those of competitors and target a ______ market.
Companies pursuing a cost-leadership strategy keep costs/prices ______ those of competitors and target a ______ market.
Based on Smartwater's unique bottle design and health benefits, which of Porter's competitive strategies is it using?
Based on Smartwater's unique bottle design and health benefits, which of Porter's competitive strategies is it using?
Of the three core processes of business identified by Bossidy and Charan, which is considered the most important?
Of the three core processes of business identified by Bossidy and Charan, which is considered the most important?
According to Bossidy and Charan, the first core process of business is ______.
According to Bossidy and Charan, the first core process of business is ______.
What are functional strategies used to accomplish?
What are functional strategies used to accomplish?
Aligning people with goals, achieving promised results, and integrating strategies are all part of the ______ process.
Aligning people with goals, achieving promised results, and integrating strategies are all part of the ______ process.
A system of shared beliefs and values aligned with efficient, quality work is called ______ culture.
A system of shared beliefs and values aligned with efficient, quality work is called ______ culture.
According to Bryan Barry, what helps a manager keep a strategic plan on track? (Choose every correct answer.)
According to Bryan Barry, what helps a manager keep a strategic plan on track? (Choose every correct answer.)
What are the core processes of business identified by Bossidy and Charan? (Choose every correct answer.)
What are the core processes of business identified by Bossidy and Charan? (Choose every correct answer.)
Why do potential employers value the skill of strategic thinking in job candidates? (Choose every correct answer.)
Why do potential employers value the skill of strategic thinking in job candidates? (Choose every correct answer.)
Which of Bossidy and Charan's core processes is reflected by Chip's Coffee House offering paid vacation and health insurance?
Which of Bossidy and Charan's core processes is reflected by Chip's Coffee House offering paid vacation and health insurance?
Strategic ______ involves monitoring the execution of strategy and taking corrective action when necessary.
Strategic ______ involves monitoring the execution of strategy and taking corrective action when necessary.
Which 'unwritten' skill is considered essential for job promotion according to Harvard Business Review?
Which 'unwritten' skill is considered essential for job promotion according to Harvard Business Review?
What are the goals of attending industry conferences? (Choose every correct answer.)
What are the goals of attending industry conferences? (Choose every correct answer.)
Environmental factors that an organization may exploit for competitive advantage are called organizational ______.
Environmental factors that an organization may exploit for competitive advantage are called organizational ______.
A(n) ______ strategy requires little or no change to a company's product or service.
A(n) ______ strategy requires little or no change to a company's product or service.
Michael Porter defined ______ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.
Michael Porter defined ______ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.
The three sources from which ______ emerges include having few needs and many customers, broad needs and few customers, and broad needs and many customers.
The three sources from which ______ emerges include having few needs and many customers, broad needs and few customers, and broad needs and many customers.
Which level of strategic management focuses on the organization as a whole?
Which level of strategic management focuses on the organization as a whole?
It is common practice today for most small business owners to engage in strategic planning.
It is common practice today for most small business owners to engage in strategic planning.
Match the steps in the strategic management process:
Match the steps in the strategic management process:
Strategic positioning attempts to achieve sustainable competitive advantage by ______.
Strategic positioning attempts to achieve sustainable competitive advantage by ______.
In which step of the strategic-management process does an organization establish the mission and vision statements?
In which step of the strategic-management process does an organization establish the mission and vision statements?
The second step of the strategic management process involves ______.
The second step of the strategic management process involves ______.
The sources from which strategic position emerges are having ______. (Choose every correct answer)
The sources from which strategic position emerges are having ______. (Choose every correct answer)
Corporate-level strategy does which of the following? (Choose every correct answer)
Corporate-level strategy does which of the following? (Choose every correct answer)
Which are characteristics of strategy formulation? (Choose every correct answer)
Which are characteristics of strategy formulation? (Choose every correct answer)
To be successful, strategic planning requires a company to have a ______ orientation.
To be successful, strategic planning requires a company to have a ______ orientation.
The 'feedback loop' in the strategic-management process involves ______.
The 'feedback loop' in the strategic-management process involves ______.
When other companies cannot duplicate the value provided by a competitor, then the competitor has established a(n) ______ competitive advantage.
When other companies cannot duplicate the value provided by a competitor, then the competitor has established a(n) ______ competitive advantage.
Which stage of the strategic management process is Jordan in if he writes down the long-term goals of his computer repair business?
Which stage of the strategic management process is Jordan in if he writes down the long-term goals of his computer repair business?
In which stage of the strategic management process is Star Software Inc. conducting benchmark activities?
In which stage of the strategic management process is Star Software Inc. conducting benchmark activities?
Within a SWOT analysis, the letter 'S' represents a company's ______.
Within a SWOT analysis, the letter 'S' represents a company's ______.
Strategy ______ is the process of choosing among different strategies and altering them to best fit the organization's needs.
Strategy ______ is the process of choosing among different strategies and altering them to best fit the organization's needs.
When applying SWOT analysis, the reputation of a company is an example of a(n) ______.
When applying SWOT analysis, the reputation of a company is an example of a(n) ______.
In a SWOT analysis, having outdated manufacturing facilities would be an example of a company's ______.
In a SWOT analysis, having outdated manufacturing facilities would be an example of a company's ______.
Luxury Linens Inc. produces the highest thread-count sheets available anywhere; it can be said that Luxury Linens has a(n) ______.
Luxury Linens Inc. produces the highest thread-count sheets available anywhere; it can be said that Luxury Linens has a(n) ______.
The skills and capabilities that give an organization special competencies and competitive advantages in executing strategies are called organizational ______.
The skills and capabilities that give an organization special competencies and competitive advantages in executing strategies are called organizational ______.
Environmental factors that an organization may exploit for competitive advantage are called organizational ______.
Environmental factors that an organization may exploit for competitive advantage are called organizational ______.
Within a SWOT analysis, the letter 'T' represents a company's ______.
Within a SWOT analysis, the letter 'T' represents a company's ______.
In addition to value, what characteristics are being addressed in a VRIO analysis? (Choose every correct answer)
In addition to value, what characteristics are being addressed in a VRIO analysis? (Choose every correct answer)
When would a company use a VRIO analysis?
When would a company use a VRIO analysis?
Precise work processes and high-ranking customer service are examples of organizational ______ in a SWOT analysis.
Precise work processes and high-ranking customer service are examples of organizational ______ in a SWOT analysis.
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?
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?
What is an example of an organizational weakness based on a SWOT analysis?
What is an example of an organizational weakness based on a SWOT analysis?
In a VRIO analysis, what part helped Rohan evaluate offering a pick-up service?
In a VRIO analysis, what part helped Rohan evaluate offering a pick-up service?
What is an example of an organizational weakness in SWOT analysis?
What is an example of an organizational weakness in SWOT analysis?
Leonore's Luxury Leather Footwear Corp. conducts a SWOT analysis and predicts an increase in sales; this vision is known as a ______.
Leonore's Luxury Leather Footwear Corp. conducts a SWOT analysis and predicts an increase in sales; this vision is known as a ______.
In terms of SWOT analysis, organizational ______ are environmental factors that hinder an organization.
In terms of SWOT analysis, organizational ______ are environmental factors that hinder an organization.
In a VRIO analysis, Cassandra determined the ______ of delivering food.
In a VRIO analysis, Cassandra determined the ______ of delivering food.
When conducting a VRIO analysis, determining if a resource is controlled by few firms assesses the ______ associated with it.
When conducting a VRIO analysis, determining if a resource is controlled by few firms assesses the ______ associated with it.
A ______ is a vision or projection of the future made following a SWOT analysis.
A ______ is a vision or projection of the future made following a SWOT analysis.
The process by which a company compares its performance with other high-performing organizations is known as ______.
The process by which a company compares its performance with other high-performing organizations is known as ______.
A grand strategy involving expansion of revenues, market share, or employees is known as a ______ strategy.
A grand strategy involving expansion of revenues, market share, or employees is known as a ______ strategy.
A(n) ______ strategy requires little or no change to a company's product or service.
A(n) ______ strategy requires little or no change to a company's product or service.
What does the BCG matrix evaluate? (Choose every correct answer)
What does the BCG matrix evaluate? (Choose every correct answer)
What process does Juanita use to compare her taxi company with others?
What process does Juanita use to compare her taxi company with others?
What strategy is American Tile Corp. using when it acquires a company not currently offered?
What strategy is American Tile Corp. using when it acquires a company not currently offered?
Porter's five competitive forces form a model for ______ analysis.
Porter's five competitive forces form a model for ______ analysis.
A business focusing on hiring more employees to reach more customers is pursuing a ______ strategy.
A business focusing on hiring more employees to reach more customers is pursuing a ______ strategy.
Sasha had to rethink his menu due to a chain restaurant; this reflects which of Porter's five competitive forces?
Sasha had to rethink his menu due to a chain restaurant; this reflects which of Porter's five competitive forces?
Johnson & Johnson promoted its baby shampoo without changing its formulation; this exemplifies which type of corporate strategy?
Johnson & Johnson promoted its baby shampoo without changing its formulation; this exemplifies which type of corporate strategy?
In the BCG matrix, what does business growth rate refer to?
In the BCG matrix, what does business growth rate refer to?
Pacific Specialty Bikes choosing to pay higher prices reflects which of Porter's competitive forces?
Pacific Specialty Bikes choosing to pay higher prices reflects which of Porter's competitive forces?
The strategy of moving into new lines of business is called ______.
The strategy of moving into new lines of business is called ______.
The Internet has increased consumer's ability to negotiate prices; which of Porter's competitive forces does this demonstrate?
The Internet has increased consumer's ability to negotiate prices; which of Porter's competitive forces does this demonstrate?
Which of the following represent competitive forces used in Porter's model for industry analysis? (Choose every correct answer)
Which of the following represent competitive forces used in Porter's model for industry analysis? (Choose every correct answer)
Which of Porter's competitive strategies are appropriate when addressing a narrow market? (Choose every correct answer)
Which of Porter's competitive strategies are appropriate when addressing a narrow market? (Choose every correct answer)
You own a small deli and learn the university may open a Subway franchise; which of Porter's competitive forces does this represent?
You own a small deli and learn the university may open a Subway franchise; which of Porter's competitive forces does this represent?
When a company can easily switch suppliers, this indicates that the bargaining power of ______ goes down.
When a company can easily switch suppliers, this indicates that the bargaining power of ______ goes down.
Dell tries to have the lowest prices; this would be an example of the ______ strategy.
Dell tries to have the lowest prices; this would be an example of the ______ strategy.
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.
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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.
