Strategic Management Revision

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App

Questions and Answers

Match the following terms with their definitions:

VRIO = Framework for identifying competitive advantages RBV = Model that focuses on resources for performance Competitive Disadvantage = Weaknesses leading to inferior performance Implementation = Aligning structure and activities to strategy

Match the components of environmental scanning with their corresponding description:

Task environment = Affects organization operations directly General environment = Affects the organization indirectly Opportunities = Potential advantages to capitalize on Threats = Potential disadvantages to mitigate

Match the following attributes of resources with their descriptions:

Valuable = Resource that contributes to competitive advantage Rare = Not widely possessed by competitors Inimitable = Cannot be easily copied Organized = Structured for effective deployment

Match the following companies with their competitive focus:

<p>Apple Inc. = Innovation and product design Samsung = Diverse product range and market penetration Competitors = Businesses battling for market share Resource Differences = Key factor in performance variations</p> Signup and view all the answers

Match the sources of competitive intelligence with their descriptions:

<p>Consultant = External expert providing insights Internet = Online resources and data gathering Trade journals = Publications focused on specific industries Customer surveys = Gathering feedback from consumers</p> Signup and view all the answers

Match the following steps in strategy development with their focuses:

<p>Step 5 = Implementing strategies Step 6 = Evaluating results Effective Strategy Implementation = Requires matching structure to strategy Adjustments = Necessary based on evaluation outcomes</p> Signup and view all the answers

Match the elements of the task environment with their corresponding roles:

<p>Competitors = Other entities vying for the same market Customers = Individuals or businesses purchasing goods Suppliers = Providers of essential resources Government = Regulatory body impacting operations</p> Signup and view all the answers

Match the steps in an external audit with their respective actions:

<p>Gathering competitive intelligence = Collecting information about competitors Manager meeting = Discussing opportunities and threats Identifying opportunities = Listing potential areas for growth Addressing threats = Formulating strategies to counter risks</p> Signup and view all the answers

Match the following analysis types with their characteristics:

<p>Financial Assets = Easily assessed Physical Assets = Tangible resources Intangible Assets = Difficult to evaluate Human Resources = Includes employee skills and culture</p> Signup and view all the answers

Match the parts of a mission statement with their focus:

<p>Vision statement = Long-term aspirations of the organization Values statement = Core principles guiding behavior Purpose statement = Reason for the organization's existence Strategy statement = Plan to achieve objectives</p> Signup and view all the answers

Match the following components of a competitive advantage with their examples:

<p>Valuable = Enhances customer satisfaction Rare = Unique brand identity Inimitable = Proprietary technology Organized = Efficient supply chain processes</p> Signup and view all the answers

Match the following concepts with their implications for business strategy:

<p>Competitive Advantage = Surpassing rivals in performance Weaknesses = Potential risks to success Environment = Influences strategic choices Organizational Structure = Shapes strategy implementation</p> Signup and view all the answers

Match the aspects of internal analysis with their significance:

<p>Assessing strengths = Creating value for customers Evaluating capabilities = Understanding organizational potential Reviewing activities = Examining operational processes Enhancing competitive position = Strengthening market advantage</p> Signup and view all the answers

Match the terms with their definitions pertaining to competitive interactions:

<p>Competitive Forces = Factors influencing market competition New Entry = Emergence of new businesses in the market Substitute Products = Alternatives that fulfill the same need Creditors = Entities that provide financial support</p> Signup and view all the answers

Match the following terms with their corresponding actions in strategy management:

<p>Evaluating Strategies = Assessing effectiveness Implementing Strategies = Executing plans Making Adjustments = Refining strategies based on feedback Fitting Structure = Aligning organization to environment</p> Signup and view all the answers

Match the types of information with their sources:

<p>Ethical considerations = Guidelines for ethical intelligence gathering Managers = Internal insights from leadership Former employees = Experience-based knowledge Suppliers = Information on resource availability</p> Signup and view all the answers

Match the following steps in the evaluation process with their descriptions:

<p>Review IFE and EFE = Measure actual performance Compare actual performance with standards = Assessment of goal alignment Corrective action = Address any performance gaps Balanced scorecard = Framework with four performance perspectives</p> Signup and view all the answers

Match the following types of integrative strategies with their definitions:

<p>Forward integration = Gain control over distributors Backward integration = Increase control over suppliers Horizontal integration = Increase control over competitors Acquisitions = Strategy to absorb competing businesses</p> Signup and view all the answers

Match the intensive strategies with their objectives:

<p>Market penetration = Increase market share in existing markets Market development = Introduce existing products to new areas Product development = Enhance existing products for more sales Greater marketing efforts = Boost visibility and sales of current products</p> Signup and view all the answers

Match the following types of diversification strategies with their characteristics:

<p>Related diversification = Competitive value across business lines Unrelated diversification = Dissimilar value chains without competitive synergy Strategic fit = When value chains align within the same industry Diverse industries = Different sectors with no competitive advantage</p> Signup and view all the answers

Match the four perspectives of the balanced scorecard with their focus areas:

<p>Financial = Monetary performance and stability Customer = Satisfaction and retention of clients Learning and growth = Capacity for innovation and improvement Internal process = Efficiency and effectiveness of operations</p> Signup and view all the answers

Match the following definitions to their respective corporate strategy types:

<p>Corporate strategy = Specifies business involvement and objectives Intensive strategies = Focus on market and product growth Integrative strategies = Combine control over supply and distribution Diversification strategies = Expand into new business areas or capacities</p> Signup and view all the answers

Match the actions involved in corrective measures to their purposes:

<p>Identify performance gaps = Determine areas needing improvement Implement changes = Address issues that arose from evaluations Monitor outcomes = Ensure adjustments lead to desired results Reassess strategies = Adjust planning based on new performance metrics</p> Signup and view all the answers

Match the following elements of the evaluation step with their roles:

<p>Measure actual performance = Data gathering and analysis Assessment of goals = Comparison of intended versus actual outcomes Identifying gaps = Finding discrepancies in performance Taking corrective action = Implementing strategies to close gaps</p> Signup and view all the answers

Match the components of Strategic Management with their descriptions:

<p>Formulating = Starts with mission and vision Implementing = Annual objectives and policies Evaluating = Performance measurement External Analysis = Assessing external factors affecting the organization</p> Signup and view all the answers

Match the steps of the Strategic Management Process with their explanations:

<p>Identifying the Current Mission = Purpose of the organization Long term objectives = Goals to achieve over time Alternative strategies = Different approaches to reach objectives Corrective action = Adjustments needed based on evaluation</p> Signup and view all the answers

Match the importance of Strategic Management with its benefits:

<p>Higher organizational performance = Improves overall effectiveness Adapting to business environment = Staying relevant in the market Coordinating organizational units = Enhances focus on goals Performance measurement = Tracking success and areas for improvement</p> Signup and view all the answers

Match the terms related to strategy formulation with their definitions:

<p>Mission = Why do we exist? Vision = What we want to become? Internal Analysis = Assessing internal strengths and weaknesses Strategy selection = Choosing the best course of action</p> Signup and view all the answers

Match the elements of the Implementation phase with their roles:

<p>Policies = Guidelines for decision making Employee motivation = Encouraging performance and engagement Resource allocation = Distribution of resources to achieve objectives Annual objectives = Targets for the upcoming year</p> Signup and view all the answers

Match the aspects of Evaluation with their functions:

<p>Internal review = Assessing internal processes External review = Evaluating market and environmental changes Performance measurement = Quantitative assessment of results Corrective action = Implementing changes based on evaluations</p> Signup and view all the answers

Match the parts of the Strategic Management Process with their order:

<p>Formulating = Step 1: Initial analysis Implementing = Step 2: Putting strategies into action Evaluating = Step 3: Assessing outcomes Mission and Vision = Foundation of the strategic plan</p> Signup and view all the answers

Match the types of analyses used in Strategic Management with their focus:

<p>External Factors Evaluation (EFE) = Market trends and competition Internal Factors Evaluation (IFE) = Internal capabilities and resources Long term objectives = Future goals of the organization Alternative strategies = Various methods to achieve goals</p> Signup and view all the answers

Flashcards

What is Strategic Management?

Strategic Management is the process of planning, implementing, and evaluating decisions across departments to achieve organizational goals.

What is involved in formulating strategy?

Formulating strategies involves defining the company's purpose (mission) and desired future (vision), analyzing the external and internal environments, setting long-term goals, developing strategy options, and finally choosing the best strategy.

What is involved in implementing strategy?

Implementing strategy involves setting annual objectives, creating policies, motivating employees, and allocating resources to put the chosen plan into action.

What is involved in evaluating strategy?

Evaluating strategy involves regularly reviewing the internal and external environment, measuring performance against goals, and taking corrective actions if needed. This ensures the strategy remains relevant and effective.

Signup and view all the flashcards

Why is strategic management important?

Strong strategic management leads to better company performance. It also forces managers to adapt to changing conditions in the marketplace and aligns different departments to work towards the same goals.

Signup and view all the flashcards

What is a company's mission?

The company's mission statement answers the question: "Why do we exist?" It describes the purpose and scope of the organization's products and services.

Signup and view all the flashcards

What is a company's vision?

The company's vision statement answers the question: "What do we want to become?" It describes the organization's aspirations for the future.

Signup and view all the flashcards

What are the steps in the strategic management process?

The strategic management process involves a series of steps to create and implement a successful strategy. These steps include identifying the current mission and goals, analyzing external and internal environments, setting long-term objectives, developing alternative strategies, selecting the best strategy, implementing the chosen strategy, and evaluating its performance.

Signup and view all the flashcards

Environmental Scanning

The process of examining the external environment for opportunities and threats that may affect an organization's performance.

Signup and view all the flashcards

Task Environment

The immediate environment surrounding an organization that directly impacts its operations. This includes competitors, customers, suppliers, employees, and government.

Signup and view all the flashcards

Porter's Five Forces

Forces that shape the competitive landscape within an industry. These include rivalry among competitors, the threat of new entrants, the threat of substitute products, the bargaining power of buyers, and the bargaining power of suppliers.

Signup and view all the flashcards

General Environment

The broader environment surrounding an organization that influences the task environment. This includes factors like economic conditions, technological advancements, social trends, political climate, and environmental regulations.

Signup and view all the flashcards

Competitive Intelligence

A systematic process for gathering and analyzing publicly available information about competitors to gain a competitive edge. It helps anticipate competitors' actions, identify opportunities, and develop effective strategies.

Signup and view all the flashcards

Internal Analysis

Analyzing an organization's internal strengths and weaknesses. This involves assessing resources, capabilities, and activities to understand what the organization does well and where it needs improvement.

Signup and view all the flashcards

Strengths

Aspects of an organization that create value for customers and enhance its competitive position. They are what a company does exceptionally well.

Signup and view all the flashcards

Weaknesses

Areas where an organization lacks the resources, capabilities, or activities to compete effectively. They represent opportunities for improvement.

Signup and view all the flashcards

Weaknesses and Competitive Disadvantage

Weaknesses in a company can lead to a competitive disadvantage.

Signup and view all the flashcards

Assessing Intangible Assets

Intangible assets, such as employee skills and company reputation, are harder to assess than tangible assets like buildings and equipment.

Signup and view all the flashcards

Resource-Based View (RBV)

The resource-based view (RBV) suggests that a company's resources are key to its success. If a resource is valuable, rare, inimitable, and organized (VRIO), it can give the company a competitive edge.

Signup and view all the flashcards

VRIO Framework

The VRIO framework helps identify and use competitive advantages. Resources must be valuable, rare, inimitable, and organized to create a sustainable advantage.

Signup and view all the flashcards

Strategy Implementation

Implementing strategy involves aligning a company's structure and activities to fit its chosen strategy. This requires adapting to changes in the external environment.

Signup and view all the flashcards

Strategy Evaluation

Evaluating results involves measuring the effectiveness of a strategy and making adjustments as needed. This ensures the strategy remains relevant and beneficial.

Signup and view all the flashcards

Strategic Management Process

Steps involved in strategic management include: 1. Identifying the mission and goals, 2. Analyzing the internal and external environments, 3. Setting long-term objectives, 4. Developing alternative strategies, 5. Selecting the best strategy, 6. Implementing the strategy, and 7. Evaluating results.

Signup and view all the flashcards

Company Vision

A company's vision statement describes its aspirations and future goals. It answers the question 'What do we want to become?'

Signup and view all the flashcards

What is a corporate strategy?

A corporate strategy determines the businesses a company engages in or aims to be in, and outlines the company's plans for those businesses.

Signup and view all the flashcards

What is forward integration?

Forward integration involves gaining control over distributors, increasing the company's reach in the distribution chain.

Signup and view all the flashcards

What is backward integration?

Backward integration increases a company's control over its suppliers, securing vital resources and potentially reducing costs.

Signup and view all the flashcards

What is horizontal integration?

Horizontal integration focuses on gaining control over competitors, potentially through mergers or acquisitions, expanding market share and reducing competition.

Signup and view all the flashcards

What is market penetration?

Market penetration involves increasing market share for existing products within the current market through intensified marketing efforts.

Signup and view all the flashcards

What is market development?

Market development involves introducing existing products to new geographic areas, expanding the customer base and reaching new markets.

Signup and view all the flashcards

What is product development?

Product development involves increasing sales by improving or modifying existing products, catering to evolving customer needs and preferences.

Signup and view all the flashcards

What is related diversification?

Related diversification involves expanding into new businesses that share competitive value and strategic fit with the company's existing businesses, often within the same industry.

Signup and view all the flashcards

Study Notes

Strategic Management Revision

  • Strategic Management is the art and science of formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives.
  • Formulating involves starting with mission and vision, followed by external and internal analysis (EFE and IFE), setting long-term objectives, developing alternative strategies, and finally selecting a strategy.
  • Implementing strategies includes setting annual objectives, establishing policies, motivating employees, allocating resources, and conducting internal/external reviews. Evaluations consist of measuring performance, identifying corrective actions if needed, and evaluating internal and external reviews.
  • Strategic Management is important because it leads to higher organizational performance, enabling managers to adapt to changing business environments, and coordinating diverse organizational units towards common goals.

Strategic Management Process

  • The strategic management process involves several interconnected stages.
  • Perform External Audit (Chapter 3) to identify opportunities and threats.
  • Develop Vision and Mission (Chapter 2).
  • Establish Long-Term Objectives (Chapter 5).
  • Generate, Evaluate, and Select Strategies (Chapter 6).
  • Implement Strategies (Management Issues - Chapter 7) covering different areas like marketing, finances, accounting, R&D and MIS.
  • Measure and Evaluate Performance (Chapter 9).

Identifying Current Mission, Goals, and Strategies

  • Identifying current mission, goals, and strategies involves understanding the organization's purpose (mission), its desired future state (vision), and its product/service scope to define its existence.
  • A deep understanding is needed to evaluate what an organization does, what it wants to become, and the existing strategies that drive its actions.

Components of a Mission Statement

  • Customers: Who are the firm's customers?
  • Markets: Where does the firm compete geographically?
  • Concern for survival, growth, and profitability: Is the firm committed to expanding its reach and improving financial stability?
  • Philosophy: What are the firm's core beliefs, values, and ethical standards?
  • Concern for public image: How responsive is the firm to societal and environmental concerns?
  • Products or services: What are the firm's major products or services?
  • Technology: Is the firm technologically current in its industry?
  • Self-concept: What are the firm's major competitive advantage and core competencies?
  • Employees: Are employees viewed as a valuable asset?

Doing an External Analysis

  • External analysis involves scanning both the specific and general environments to identify opportunities and threats confronting the organization.
  • Doing an external analysis involves gathering information to identify opportunities and threats in the environment.
  • The task environment involves analyzing competitors, customers, suppliers, employees, managers, government, creditors, new entrants, and substitute products.
  • The general environment entails a PESTLE analysis: Political, Economic, Social, Technological, Legal, and Environmental factors affecting the organization indirectly. This framework provides a comprehensive overview of macro-environmental factors.

Competitive Intelligence

  • Competitive intelligence is a systematic process involving gathering valuable information about competitors.
  • It should be gathered ethically and used to gain advantages from competitors weaknesses while mitigating potential threats from advantages.

Doing an Internal Analysis

  • Internal analysis assesses organizational resources, capabilities, and activities to identify strengths and weaknesses.
  • Key aspects of assessing assets are financial, physical, and intangible assets.
  • Strengths contribute to value, while weaknesses can lead to a competitive disadvantage.
  • Assessing intangible factors like employees' skills, company culture, and reputation takes more effort than assessing tangible assets.

Resource-Based View (RBV)

  • The RBV framework considers resources as key drivers of superior firm performance.
  • A resource is considered beneficial when it is valuable, rare, inimitable, and organized (VRIO).

VRIO Model

  • The VRIO (Valuable, Rare, Imitatable, and Organized) framework is used to assess if resources create sustainable competitive advantages.
  • The VRIO framework systematically evaluates factors influencing success.

Implementing Strategies

  • Implementing strategies involves aligning organizational structure and activities with the chosen strategy to effectively operate in the environment.
  • Effective execution of a strategy requires a matching of organizational structure with the strategy's requirements.

Evaluating Results

  • Evaluating results involves assessing the effectiveness of implemented strategies and making necessary adjustments.
  • The effectiveness of strategies and required adaptations are central to gaining insights for continued success.

Evaluation Step

  • The evaluation step includes reviewing IFE and EFE matrices to measure actual performance (step 1).
  • The second step involves comparing actual performance with established standards and objectives, (step 2).
  • Finally, corrective actions are developed if necessary, (step 3).

Balanced Scorecard Matrix

  • The balanced scorecard matrix is used to measure and evaluate overall organizational performance.
  • The matrix encompasses several key areas, including financial performance, customer satisfaction, learning and growth potential, and internal operational efficiency.

Corporate Strategy

  • Corporate strategy specifies the various businesses a company operates in or intends to enter, and outlines how it intends to manage these businesses.
  • Integrative strategies (forward or backward integration for example) involve controlling distributors or suppliers.
  • Horizontal integration involves acquiring competitors.
  • Intensive strategies (market penetration strategy, market development strategy, or product development strategy) increase market share or expand into new markets or develop new products.
  • Diversification strategies may be related (within the same industry) or unrelated (across different industries).
  • Defensive strategies (retrenchment, divestiture, or liquidation) aim to reduce costs or sell unprofitable parts of the business.

Choosing a Competitive Strategy

  • Competitive strategies are generic approaches:
  • Cost leadership strategy focuses on achieving the lowest cost for products/services.
  • Differentiation strategy centers on offering unique products/services with premium pricing.
  • Focus strategy entails focusing on a particular market segment employing either cost or differentiation advantage.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Strategic Management Revision PDF 2024-2025

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser