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MGMT 301: Chapter 6
MGMT 301: Chapter 6 Questions
| Question | Answer |
|---|---|
| Who is Michael Porter? | Is recognized as one of the most influential business school professors (Harvard) |
| Define Strategic Positioning: | Attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company |
| What are the key principles of Strategic Positioning? | 1) Strategy is the creation of a unique and valuable position 2) Strategy requires trade-offs in competing 3) Strategy involves creating a "fit" among activities |
| Strategic position emerges from what sources? | 1) Few needs, many customers 2) Broad needs, few customers 3) Broad needs, many customers |
| What are the levels of strategic management? | 1 - Corporate 2 - Business 3 - Functional |
| Define Corporate Level Strategy: | Focuses on the organization as a whole. Executives refer to this as the C-Suite and typically conduct this type of strategic planning. |
| Define Business-Level Strategy: | Focuses on individual business units or product/service lines. Senior-level managers below the C-Suite typically are responsible for this level of strategy. |
| Define Functional-Level Strategy: | Applies to the key functional departments or units within the business units. Functional managers lead planning discussions at this level, and the focus is on more tactical issues that support business-level strategies. |
| Strategic management process has how many steps? | 1) Establish the mission, vision, and values statements 2) Assess the current reality 3) Formulate corporate, business, and functional strategies 4) Execute the Strategies 5) Maintain Strategic Control |
| Define Current Reality Assessment: | Organizational assessment, looking 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 organization's mission |
| Define Strategy Formulation: | Process of choosing among different strategies and altering them to best fit the organization's needs. |
| Define Strategy Implementation: | Putting strategic plans into effect. It is essential for success and is considered to elicit the greatest challenge for managers. Has to be able to be translated into lower-level plans. |
| Define Strategic Control: | Monitoring the execution of strategy and making adjustments, if necessary. |
| Define Sustainable Competitive Advantage: | Exists when other companies cannot duplicate the value delivered to customers |
| Define SWOT Analysis: | Situational analysis in which a company assesses its strengths, weakness, opportunities, and threats. It is a good first step at gaining insight into whether or not a company has competitive advantage. |
| Define Organizational Strengths: | The skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its vision |
| Define Organizational Weakness: | Drawbacks that hinder an organization in executing strategies in pursuit of its vision |
| Define Organizational Opportunities: | Environmental factors that the organization may exploit for competitive advantage |
| Define Organizational Threats: | Environmental factors that hinder an organization's achieving a competitive advantage |
| Define VRIO: | Framework for analyzing a resource or capability to determine its competitive strategic potential by answering four questions about its value, rarity, imitability, and organization. |
| Define Forecast: | Is a vision or projection of the future |
| Define Trend Analysis: | Hypothetical extension of a past series of events into the future |
| Define Contingency Planning: | Known as scenario planning and (blank), it is the creation of alternative hypothetical but equally likely future conditions |
| Define Scenario Analysis: | Known as scenario planning, it is the creation of alternative hypothetical but equally likely future conditions |
| Define Benchmarking: | Process by which a company compares its performance with that of high-performing organizations |
| What are the fundamental types of corporate strategies? | 1) Growth Strategy 2) Stability Strategy 3) Stability Strategy |
| Define Growth Strategy: | Grand strategy that involves expansion-as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served |
| Define Innovation Strategy: | Growing market share or profits by innovating improvements in products or services |
| Define Stability Strategy: | Grand strategy that involves little or no significant change |
| Define Defense Strategy: | Also known as a retrenchment strategy: |
| Define BCG Matrix: | Boston Consulting Group, It is a management strategy by which companies evaluate their strategic business units on the basis of: 1) Business Growth Rates 2) Share of the Market |
| Define Diversification: | Strategy of moving into the new lines of business, such as Amazon purchasing Whole Foods or CVS buying Aetna |
| Define Related Diversification: | When a company purchases a new business that is related to the company's existing business portfolio. |
| Define Unrelated Diversification: | Occurs when a company acquires another company in a completely unrelated business |
| Define Vertical Integration: | Firm expands into businesses that provide the supplies it needs to make its products or that distribute and sell its products. |
| Define Porter's Model for Industry Analysis: | Business-level strategies originate in five primary competitive forces in the firm's environment |
| What are the competitive forces Porter speaks about in his Model for Industry Analysis? | 1) Threats of new entrants 2) Bargaining power of suppliers 3) Bargaining power of buyers 4) Threats of substitute products or services 5) Rivalry among competitors |
| Define Porter's Four Competitive Strategies: | Also called four generic strategies, they are: 1) Cost-leadership 2) Differentiation 3) Cost-focus 4) Focused-differentiation |
| Define Cost-Leadership Strategy: | To keep the costs and hence the prices, of a product or service below those of competitors and to target a wide market |
| Define Strategy: | Offer products or services that are of unique and superior value compared with those of competitors but to target a wide market |
| Define Differentiation Strategy: | Offer products or services that are of unique and superior value compared with those of competitors but to target a wide market |
| Define Cost-Focus Strategy: | Keep the costs, and hence prices, of a product or service below those of competitors and to target a narrow market |
| Define Focused-Differentiation Strategy: | Offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market |
| To maintain strategic control, Brya Barry suggests the following must be conducted: | Engage people, keep it simple, stay focused, and keep moving |
| Define Execution: | Central part of any company's strategy. Consist of questioning, analysis, and follow through to mesh strategy with reality, align people with goals, and achieve results promised |
| A company's overall ability to execute is a function of effectively executing according to these process: | People, strategy, operations |
| What is the first core process: | People, need to consider who will benefit you in the future. Effective leader tries to evaluate talent by linking people to particular strategic milestones, developing future leaders, dealing with nonperformers and transforming mission and operations o HR |
| What is the second core process: | Strategy, you need to consider how success will be accomplished. |
| What is the third core process: | Operations, you need to consider what path will be followed. Defines where an organization wants to go, and the people process defines who's going to get it done. |
Created by:
DavidMV2014
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