STRAMA LONG QUIZ

organizational intelligence

refers to expertise, insight, wisdom possesed by an entity. It serves as a valuable guide to its journey to becoming competitive.

environmental scanning

the study of interpretation of the force existing in the internal and external environments. carefully monitoring the surrounding with the end goal of ascertaining early indicators of prospect and challenges that may influence the organization’s present and future plans.

social, economic, political, technological, environmental forces

external environment may include the following

competitors, suppliers, customers, stakeholders, culture, government

competitive environment may include the following

strategic information

consist of the facts and data by organizations to assist them in achieving their vision, mission, and goals

external environment, competitive environment

sources of strategic information

looking at or simply viewing information, looking for or searching for information

modes of environment scanning

undirected viewing, conditioned viewing, informal search, formal search

four ways of environmental scanning

undirected viewing

the individual is exposed with no specific information need in mind. sources of information are wide ranging and large chunks of information are quickly dropped from the individual’s attention

conditioned viewing

the individual directs viewing of information to specified facts and data to be able to assess their general impact on the organization. it is not an active search but a mere viewing of information

informal search

the individual actively looks for information to increase knowledge of a particular issue

formal search

the effort exerted by the individual is deliberate and planned

political, economic, social, technological

the analysis of external environment is referred to as PEST

social forces

refer to important issues that are characteristics of global and local societies. society consists of individuals, families, and communities, including their beliefs, aspirations, traditions and practices

changing social structures, aging population or demand for health services, sophisticated lifestyle of the people, cross cultural diversity

factors create varying impacts on organizations

changing social structures

refers to the network of social institutions that includes families sizes, aging population, life style of people and the community. today it changing significantly, family sizes are decreasing in develop countries like europe and america, another the one child policy of china

aging population or demand for health services

more maturing and aging individuals, demand for medicine and health care, ned for medical care and community service, deteriorating physical and physiological condition, emotional needs

sophisticated lifestyle of the people

compared in the past, the lifestyle of the people today have dramatically changed, it changes the way people look at themselves, careers, values,attitudes, philosophies, expectations.

cross cultural diversity

global community is getting figuratively similar, shifting of people in the global community (migration), culture being the basic components of the global environment

multicultures

the culture of the individual and the host country

political forces

political independence or changing governments, terrorism or suicide bombings, chemical and nuclear threats, global alliances

economic forces

globalization, competitors and suppliers, fall of financially stable organizations, increasing oil prices, economic trade agreements, emerging markets, rise of china

technological forces

communication technology, computer integrated business, ebanking, elearning, digital medicine, esecurity

environmental forces

climate change or use of biodegradable materials, environmental waste management, preservation of rainforest and marine life

internal environment

the setting in which organization locally exists

government

the sole legitimate institution tasked with overseeing organizational operations in the country

culture

the communal aggregation and convergence of the country’s philosophy, beliefs, tradition, values, attitudes, aspirations, and practices that have historically evolved since national inception

stakeholders

the reason why business exists, these are individuals who are willing to take risks, invest their capital and engage in business activities in exchange for a return, the roi or profit,

supply chain

a network linking a company and its suppliers to produce and deliver products, includes activities, people, entities, information,a nd resources from raw materials to customer delivery to reduce costs and stay competitive

inventory management

the ordering,storing and using inventory from raw materials to finished goods, avoid overtocking and understocking

just in time or jit

minimise stock by receiving goods only as needed

materials requirement planning or mrp

schedule and track production inputs

data warehouse

collects and manages data from multiple sources, forming the core of bi systems for analysis and reporting. it uses electronic storage optimized for querying not transactions, enabling timely, data driven decision making across the organization

scheduling in strategic management

detailing activities, orders, responsibly and timing. ensures operational efficiency and goal alignment. assigns tasks to the right people at the right time. reduces delays and resources conflicts. supports tracking of progress toward objectives

dispatching

release of orders per pre planned schedules. assigning jobs to machines and workers. determines processing time and sequences. initiates execution of operational plans

cost leadership, differentiation, cost focus, differentiation focus

Michael porters four competitive strategies

cost leadership

This strategy involves becoming the lowest cost producer in an industry. Companies pursuing this approach aim to achieve economies of scale, reduce production costs, and optimize their supply chain to offer products at a lower price than competitors, thereby attracting price sensitive customers.

Differentiation

In this strategy, a company seeks to distinguish its products or services from those of competitors by offering unique features, superior quality, or exceptional customer service. The goal is to create a perceived value among customers, allowing the company to charge a premium price.

Cost Focus

Similar to cost leadership, this strategy targets a specific market segment rather than the entire market. Companies focus on being the lowest cost producer within that niche, catering to the unique needs and preferences of that specific group.

Differentiation Focus

this strategy targets a particular market segment. Companies aim to provide unique and specialized offerings that meet the specific demands of the niche audience, thereby building strong brand loyalty and reducing the threat of competition within that segment.

lean production

to reduce waste and improve efficiency. multi skilled staff training lowers labor costs. it results to strong cost leadership and sustainable competitive advantage

stability strategy

focuses on maintaining the current market position without aggressive expansion. organizations pursue incremental improvement across customers, functions or technological to sustain performance and reduce risks

retrenchment strategy

involves scaling back operations or reducing costs to stabilize finances and improve efficiency. its often employed when a company is facing declining profits or financial difficulties. it focuses on core competencies and eliminate non essential activities.

turnaround strategy

implemented when a company is in distress but has the potential to recover. it involves a series of actions, such as restructing, cost cutting and proces optimization to restore profitability and achieve long term sustainability

divestment strategy

enatils selling off a portion of a company such as a division, subsidiary, or asset that is not performing well or does not align with the companys core business. startegy used to raise capital, reduce debt, and focus more on profitable areas of the business

liquidation strategy

process of closing down a business and selling its assets to pay off creditors. it is often considered a last resort when a company cannot continure operating due to financial insolvency. the goal is to satisfy the companys debt and obligation as much as possible before ceasing operations.

backward, forward, horizontal, vertical

integrative growth strategies

backward integration

company acquires or control its suppliers

forward intgeration

compnay acquires or controls its distributors or retailers

horizontal integration

company acquires or merges with a competitors

vertical integration

combing both or it goes backward of forward integration

export, standardization, multidomestic, transnational

four key approaches of global strategy

export strategy

involves producing goods in a company’s home country then exporting them to other ocuntries. often the first step many businesses take when entering the global market. advantage of this is that it allows companies to expand internationally with minimal investmet since the production facilities remain centralized

standardization strategy

also known as global strategy, this approach emphasizes creating unifrom products and marketing strategies across all international markets The goal is to achieve efficiency and consistency by leveraging economies of scale. This strategy works best when the demand for a product is universal, and customer needs are similar across countries. While it can significantly reduce costs, it may not cater to local preferences as effectively as other strategies.

Multidomestic Strategy

this strategy focuses on tailoring products and marketing efforts to fit the specific needs and preferences of local markets. Companies adopting this approach often establish decentralized operations that allow them to be more responsive to local demands. This strategy can lead to higher customer satisfaction and stronger market presence in individual countries, but it may come with increased costs due to the lack of economies of scale.

Transnational Strategy

This strategy seeks to combine the benefits of both global efficiency and local responsiveness. Companies use this strategy strive to standardize certain elements of their operations where feasible while adapting others to meet local requirements. It involves a more complex organizational structure, often balancing centralized and decentralized elements