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Questions and Answers
What is the primary goal of the strategic management process?
What is the primary goal of the strategic management process?
What does situation analysis primarily involve?
What does situation analysis primarily involve?
How do operational strategies differ from corporate strategies?
How do operational strategies differ from corporate strategies?
What is the role of strategy evaluation in strategic management?
What is the role of strategy evaluation in strategic management?
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Which concept suggests organizations reshape their environment rather than merely adapt to it?
Which concept suggests organizations reshape their environment rather than merely adapt to it?
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What does the power of suppliers refer to?
What does the power of suppliers refer to?
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Which type of intelligence focuses on defending company secrets?
Which type of intelligence focuses on defending company secrets?
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What is a characteristic of oligopolistic market structures?
What is a characteristic of oligopolistic market structures?
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What key elements are identified through a SWOT analysis?
What key elements are identified through a SWOT analysis?
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What defines a market with blockaded entry?
What defines a market with blockaded entry?
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Which type of intelligence is small-scale and operational in the short run?
Which type of intelligence is small-scale and operational in the short run?
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What does product differentiation refer to?
What does product differentiation refer to?
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Which term describes the ability of buyers to drive down prices?
Which term describes the ability of buyers to drive down prices?
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Study Notes
Strategic Management
- Involves decisions and actions taken by managers to guide organizational performance
- Includes a step-by-step process for implementing strategies and achieving goals
Strategic Management Process
- Situation analysis: Also known as environmental scanning, this involves analyzing the external and internal environments of the organization to identify opportunities and threats. Provides information for formulating the company's vision and mission statements.
- Strategy Formulation: Developing strategies to achieve the company's goals.
- Strategy Implementation: Putting the strategies into action through procedures, programs, and activities.
- Operational Strategies: Short-term strategies focusing on different operational departments like human resources, finance, marketing, and production
- Competitive Strategies: Techniques used to compete within a specific industry.
- Corporate Strategies: Long-term strategies providing direction for the entire organization.
- Strategy Evaluation: Appraising the company's performance and making necessary adjustments to its strategies.
Competitive Dynamics
- Globalization: The internationalization of markets and corporations.
- Global Brands: Recognized worldwide for quality, reasonable prices, and reflecting the manufacturer's social and environmental consciousness.
- Electronic Age: The era of extensive electronic transactions using the internet.
Organizational Adaptation
- Companies need to adapt to changing business environments.
- Institution Theory: Companies can adapt by observing and imitating successful companies.
- Strategic Choice: Organizations not only adapt but also try to reshape their environment.
Competitive Forces
- Power of Suppliers: Suppliers' ability to influence prices and terms of sales.
- Power of Buyers: Buyers' ability to negotiate lower prices or demand better products.
- Rivalry of Competitors: How companies compete against one another based on price, product features, marketing, etc.
- Threat of Substitutes: Alternative products or services that could replace current offerings.
- Threat of New Entrants: New companies entering the market with similar products or services, posing a competitive threat.
Competitive Intelligence
- Competitive Intelligence: Gathering, analyzing, and distributing information about competitors and their strategies.
- Strategic Intelligence: Understanding competitors' future prospects and goals.
- Tactical Intelligence: Short-term intelligence focused on specific operations.
- Counter Intelligence: Protecting company secrets from competitors.
SWOT Analysis
- A framework for analyzing an organization's Strengths, Weaknesses, Opportunities, and Threats.
Market Structure
- Market Concentration: The degree to which a few companies dominate a market.
- Product Differentiation: The extent to which a company's product or service is perceived as unique by consumers.
- Entry Barriers: Difficulties potential new entrants face when entering a market.
- Atomistic: A market with many small sellers and low interaction.
- Oligopolistic: A market with a few large sellers and high levels of interaction.
- Monopolistic: A market with a single seller.
Product Characteristics
- Homogeneous Products: Products that are highly similar or identical.
- Differentiated Products: Products that are distinguished from competitors based on design, quality, branding, or other features.
Ease of Entry
- Ease of Entry: The level of difficulty for potential new entrants to enter a market.
- Moderately Difficult: Some barriers exist, but not enough to deter entry.
- Blockaded Entry: High barriers make it impossible for new entrants to compete effectively.
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Description
This quiz covers the fundamentals of strategic management, focusing on the step-by-step process that managers use to guide their organizations. Topics include situation analysis, strategy formulation, implementation, and various types of operational and competitive strategies.
