8 Questions
What is social responsibility in strategic management?
Actions an organization takes beyond what is legally required to protect or enhance the well-being of living things
Why are firms that harm the natural environment often resented by stakeholders?
Because they are harming the well-being of living things, including the environment
What is the main purpose of an Internal and External Matrix in strategic management?
To evaluate the firm's internal and external factors to inform decision-making
What is the term for products with high market growth and a high market share, according to the BCG Matrix?
Star Mark
What is the term for products with low market growth but a high market share, according to the BCG Matrix?
Cash Cow
What is the purpose of a generic strategy in strategic management?
To provide a long-term or grand strategy for the firm
What is the term for products with high market growth but a low market share, according to the BCG Matrix?
Question Mark
What is the term for products with low market growth and a low market share, according to the BCG Matrix?
Dog Mark
Study Notes
Social Responsibility and Sustainability
- Social responsibility refers to actions taken by an organization beyond legal requirements to protect or enhance the well-being of living things.
- Environmental sustainability is a key concern, as employees, consumers, governments, and society are resentful of firms that harm the natural environment.
Strategic Management Tools
- Internal and External Matrix (IE Matrix) is a strategic management tool that evaluates internal and external factors to inform decision-making.
- It provides a comprehensive view of a company's strengths, weaknesses, opportunities, and threats.
- BCG Matrix, also known as the product portfolio matrix, is a business planning tool used to evaluate the strategic position of a firm's brand portfolio.
BCG Matrix Quadrants
- Question Mark: products with high market growth but low market share; these products require frequent analysis to determine if they are worth maintaining.
- Star Mark: products with high market growth and high market share; these products require significant investment to retain market position and maintain a competitive advantage.
- Cash Cow: products with low market growth but high market share; these products are market leaders and require minimal investment to maintain their position.
- Dog Mark: products with low market growth and low market share; these products can sustain themselves but will never reach the stars quadrant.
Generic and Grand Strategies
- Generic strategies are long-term or grand strategies based on a core idea about how a firm can best compete in the marketplace.
- Grand strategies, also known as master or business strategies, provide basic direction for strategic actions and indicate the time period over which long-range objectives are to be achieved.
Integration and Organizational Performance
- Integration involves combining activities related to a firm's present activities to improve organizational performance.
- It facilitates the continuous alignment of business strategies within the ever-changing business environment.
This quiz covers strategic management concepts, including social responsibility, environmental sustainability, and internal and external matrix analysis.
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