Podcast Beta
Questions and Answers
What is one key question strategic management aims to address regarding a business?
Which of the following is NOT a factor considered in strategy formulation?
In strategic decision making, intuition is particularly useful under which condition?
What is a critical aspect of adapting to change in organizations?
Signup and view all the answers
Which of the following is an aspect of the strategic management process?
Signup and view all the answers
Which area does strategic management NOT directly influence?
Signup and view all the answers
What role do management levels play in strategy formulation?
Signup and view all the answers
Which of the following is a potential strategic issue for businesses?
Signup and view all the answers
What is typically the first step in strategic planning?
Signup and view all the answers
Which of the following best describes a mission statement?
Signup and view all the answers
What is one of the main roles of strategic planners within an organization?
Signup and view all the answers
Which of the following is not typically a function of strategic planners?
Signup and view all the answers
What type of analysis do strategic planners often engage in to identify internal strengths and weaknesses?
Signup and view all the answers
Which individual is typically the most critical strategic manager in an organization?
Signup and view all the answers
Which activity is essential to strategic management?
Signup and view all the answers
What do organizations aim to achieve through their strategies?
Signup and view all the answers
What factor increases consumer bargaining power?
Signup and view all the answers
Which of the following is a source of external information?
Signup and view all the answers
Which situation would likely decrease consumers' bargaining power?
Signup and view all the answers
What score range is used when weighing external factors in analysis?
Signup and view all the answers
Which external source provides information through articles and features?
Signup and view all the answers
What indicates that consumer power is high?
Signup and view all the answers
In competitive analysis, a firm’s overall score is interpreted with caution because:
Signup and view all the answers
Which external information source includes government publications?
Signup and view all the answers
Which technique is most appropriate for forecasting when data trends are consistent?
Signup and view all the answers
What is the main goal of the Competitive Profile Matrix (CPM)?
Signup and view all the answers
What is the primary purpose of benchmarking in research and development?
Signup and view all the answers
What is distinctive competence?
Signup and view all the answers
Which of the following is NOT a function of research and development?
Signup and view all the answers
What is an Internal Factor Evaluation (IFE) Matrix used for?
Signup and view all the answers
What question is NOT typically included in an R&D audit?
Signup and view all the answers
Which of the following represents a core competence?
Signup and view all the answers
What is the significance of performing an internal audit for strategists?
Signup and view all the answers
Which of the following best describes contract R&D?
Signup and view all the answers
What is crucial for gaining a competitive advantage in both military and business strategies?
Signup and view all the answers
What did Louis V. Gerstner, Jr. identify as a necessity for IBM during the transformation period?
Signup and view all the answers
What is Dell's mission related to customer experience?
Signup and view all the answers
What vision does Proctor & Gamble aim to achieve?
Signup and view all the answers
What is a primary characteristic of L’Oreal's approach to business success?
Signup and view all the answers
What common feature is shared among the visions of successful companies like General Motors and Tyson Foods?
Signup and view all the answers
Which of the following statements about competitive strategy is true?
Signup and view all the answers
Which of the following is an example of a vision statement?
Signup and view all the answers
Study Notes
Strategic Management
- Is about considering key issues impacting organizations and developing concepts, frameworks, tools, and techniques to address them.
- Peter Drucker: Emphasizes the importance of defining the overall mission of a business.
- Key Question: "What is our Business?"
Strategy Formulation
- Involves integrating intuition and analysis.
- Intuition draws on past experiences, judgement, and feelings.
- Useful in situations with high uncertainty, limited historical precedents, interconnected variables, and numerous possible options.
-
Key Issues:
- Which businesses to enter or exit.
- Resource allocation.
- Expansion or diversification.
- Entering international markets.
- Mergers or joint ventures.
- Preventing hostile takeovers.
Strategy Implementation
- Involves gathering and analyzing information.
- Tracking industry and competitor trends, forecasting, scenario analysis, evaluating performance, identifying opportunities and threats, and developing action plans.
- Strategic planners often provide support and expertise in higher management levels.
- The CEO is a critical strategic manager.
-
Key Internal Considerations:
- Management, Marketing, Finance & accounting, Research & Development, Management Information Systems.
- Identifying and evaluating organizational strengths and weaknesses.
- Capitalizing on internal strengths and addressing weaknesses.
Vision and Mission
- Vision Statement: Answers the question "What do we want to become?"
- Often the first step in strategic planning.
- Frequently a single sentence.
- Mission Statement: A statement of purpose differentiating from similar businesses.
-
Key Considerations:
- Long-term goals and objectives
- External factors
- Competitors
- Desired position in the market
External Information Sources
- Unpublished sources: Customer surveys, market research, speeches, interviews, conversations with stakeholders, etc.
- Published Sources: Periodicals, journals, reports, government documents, abstracts, books, directories, newspapers, manuals.
- Web Sites: Marketwatch, Moneycentral, Finance.yahoo.com, Clearstation, Etrade, Hoovers.com, etc.
Forecasting Tools and Techniques
-
Forecasts: Educated assumptions about future trends and events.
- Quantitative Techniques: Used when historical data is available, and there is a consistent relationship.
- Qualitative Techniques:
-
R&D in Organizations:
- Internal R&D: Operating an in-house R&D department.
- Contract R&D: Hiring independent researchers or agencies for specific product development.
Internal Factor Evaluation (IFE) Matrix
- Lists key internal factors.
- Assigns weights (0.0 to 1.0) to each factor.
- Rates each factor (1 to 4).
- Multiplies weight by rating and sums the weighted scores to assess overall internal strength.
Industry Analysis EFE Matrix
- Analyzes a firm's response to threats and weaknesses.
- Total weighted scores indicate the effectiveness of the organization's response.
Industry Analysis CPM
- Identifies major competitors and their strengths and weaknesses relative to a sample firm’s strategic positions.
-
Critical to:
- Identify a firm's strengths and weaknesses, particularly against competitors.
- Understand core competences: Value chain activities the firm excels in.
- Distinctive competence: When a core competence becomes a major competitive advantage.
Benchmarking
- Analytical tool for comparing a firm's value chain activities to rivals to determine whether they are competitive and conducive to winning market share.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore key issues in strategic management and learn about strategy formulation and implementation. This quiz covers crucial elements such as intuition, resource allocation, and understanding business missions, providing insights into effective decision-making in organizations.
