Chapter 6: Strategic Management Flashcards Preview

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Flashcards in Chapter 6: Strategic Management Deck (39)
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1

Strategic positioning

Attempts to achieve sustainable competitive advantage but preserving what is distinctive about a company

2

3 levels of strategic management

Corporate level strategy
Business level strategy
Functional level strategy

3

Corporate strategy

Focuses on the organization as a whole

4

Business level strategy

Focuses on individual business units or product/ service lines

5

Functional level strategy

Applies to key functional departments or units within the business units

6

5 steps to strategic management process

1) establish the mission, vision, and values statements

2) asses the current reality

3) formulate corporate, business, and functional strategies

4) execute the strategies

5) maintain strategic control

7

Current reality assessment (aka organizational assessment)

Look at where the organization stands and see what is working and what could be different so as to maximize efficiency and effectiveness in achieving the organizations mission

8

Strategy formulation

Process of choosing among different strategies and altering them to best fit the organizations needs

9

Strategy implementation

Putting strategic plans into effect

10

Strategic control

Consists of monitoring the execution of strategy and making adjustments, if necessary

11

Sustainable competitive advantage

Exists when other companies can not duplicate the value delivered to customers

12

SWOT analysis

Strengths
Weakness
Opportunities
Threats

13

Organizational strengths

Skills and capabilities that give the organization special competencies and competitive advantages

14

Organizational weaknesses

Drawbacks that hinder an organization in executing strategies on pursuit of its vision

15

Organizational opportunities

Environmental factors that the organization may exploit for competitive advantage

16

Organizational threats

Environmental factors that hinder and organizations achieving a competitive advantage

17

VRIO

Valuable
Rare
Costly to imitate
Organized to exploit value, rarity, imitability

18

Forwcast

Projection for the future

19

Trend analysis

Hypothetical extension of a past series or events into the future

20

Contingency planning (AKA scenario planning)

Plan B

Alternative solutions to a problem

21

Benchmarking

Companies compare its performance with that of the high-performing organizations

22

3 types of Corpoate strategy

Growth strategy
Stability strategy
Defensive strategy

23

Growth strategy

Grand strategy that involves expansion - as in sales revenue, market share, # of employees

24

Innovative strategy

Often a growth staregy leads to this, growing the market share or profits by innovating improvements on products or services

25

Stability strategy

Grand strategy that involves little or not significant change

26

Defensive strategy

Grand strategy that involves reduction in the organizations efforts

27

BCG matrix

Management strategy by which companies evaluate their strategic business units on the basis of:
1) business growth rates
2) share of the market

28

Diversification

Strategy of moving into new lines of business

29

Related diversification

When a company purchases a business that is related to the company’s existing business portfolio

(Disney buying fox)

30

Unrelated diversification

Occurs when a company acquired another company in a completely unrelated business