Strategic Management Identification

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Flashcards on strategic management, covering key concepts, stages, and factors influencing organizational success.

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140 Terms

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Management

Getting things done through people.

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Strategic Management

The art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives.

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Strategic Formulation

The stage of strategic management that involves developing vision and mission, identifying SWOT, establishing long-term objectives, generating alternative strategies, and choosing particular strategies to pursue.

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Strategic Implementation

The stage of strategic management that involves establishing annual objectives, devising policies, motivating employees, and allocating resources to implement the strategies.

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Strategy Evaluation

The stage of strategic management where problems may occur that need fixing, and it involves reviewing the bases of strategy, measuring organizational performance, and taking corrective action.

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Integrating Intuition and Analysis

The process of organizing qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty, often basing on feelings, experiences, and judgment.

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Adapting to Change

The continuous monitoring of internal and external events and trends so that timely changes can be made as needed.

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Competitive Advantage

An activity a firm does especially well compared to activities done by rival firms or any resource a firm possesses that rival firms desire.

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Strategists

Individuals most responsible for the success or failure of an organization, such as a chief executive officer, president, or owner.

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External Opportunities and Threats

Economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive trends and events that could significantly benefit or harm the company.

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Internal Strengths and Weaknesses

An organization's controllable activities that are performed especially well or poorly.

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Long-Term Objectives

Specific results that an organization seeks to achieve in pursuing its basic mission, typically lasting more than one year.

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Strategies

The means by which long-term objectives will be achieved.

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Annual Objectives

Short-term milestones that an organization must achieve to reach long-term objectives.

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Policies

Specific guidelines, methods, procedures, rules, forms, and administrative practices established to support efforts to achieve stated objectives.

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Proactive Approach

A benefit of strategic management that allows organizations to shape their future rather than simply react to events.

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Higher Profitability

A financial benefit of strategic management indicating that organizations using it tend to have better financial performance.

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Stronger Forecasting

A financial benefit of strategic management that helps firms anticipate market changes and challenges effectively.

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Improved Productivity

A financial benefit of strategic management where organizations plan systematically, leading to better resource utilization.

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Competitive Awareness

A financial benefit of strategic management that helps firms assess competitor strengths realistically.

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Improved understanding of competitor's strategies (or Enhanced External Awareness)

A nonfinancial benefit of strategic management where employees connect their work to organizational success.

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Reduced resistance to change

A nonfinancial benefit of strategic management where employees see change as an opportunity rather than a threat.

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Whistle-Blowing

Employees reporting any unethical violations they discover or see in the firm.

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Bribery

The offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty.

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Workplace Romance

An intimate relationship between two consenting employees.

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Moral Consideration

The rationale for business ethics that considers the principles of right and wrong.

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Religious Consideration

The rationale for business ethics that considers beliefs and practices related to a divine power.

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Professional Consideration

The rationale for business ethics that considers the standards of conduct for a particular profession.

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Service Consideration

The rationale for business ethics that considers the duty to provide good and fair service.

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Misrepresentation

An unethical practice in providing service to the customer that can be intentional (lying) or unintentional (white lie), and includes deceptive packing, adulteration, or false advertising.

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Overpersuasion

Urging a customer to satisfy a low priority need for a merchandise, playing upon intense emotional agitation to convince a person to buy, or convincing a person to buy what he does not need even if he has the money to do so.

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Conflicts of Interest

An unethical practice by employees where an employee holds a significant interest or shares of stock of a competitor, supplier, customer, or dealer, favoring this party to the prejudice of his employer.

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Dishonesty

An unethical practice by employees that includes padding an expense account, punching another employee's time card, or taking credit for another employee's idea.

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Disparagement

Ethical problems in the treatment of competitors that involve making negative statements about a rival, which can be truthful or false.

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Predatory Business Practices

Business practices that involve interfering with a competitor's production and distribution process, such as inducing breach of contract or bribing employees.

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Predatory Undercost Selling

An illegal and intentional business practice that aims to ruin a competitor's business by selling goods below cost.

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Varying Price Policy

An unethical pricing practice where different prices are charged depending on who the buyer is.

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Follow-the-Leader Pricing

An unethical pricing practice that involves matching the price to the leading brand.

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Odd-Price Policy

An unethical pricing practice that uses odd-numbered prices like $0.99$ or $99.99$.

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Loss-Leader Pricing

An unethical pricing practice that involves quoting well-known items at a lower price while other goods are at regular or higher prices.

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The Copyright Law (P.D 49 / R.A. 3134)

The law that covers original works such as books, periodicals, lectures, dramatic or musical compositions, and works of art, granting exclusive rights to the creator for their entire lifetime plus 50 years after death.

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Trademark

Any distinctive mark, name, symbol, emblem, sign, or device, or any combination thereof adopted or used by a manufacturer or merchant on his goods to identify or distinguish them from those manufactured, sold, or dealt in by others.

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Tradename

Individual names and surnames, first names, trade names, devices or words used by manufacturers, industrialists, agriculturists, merchants, and others to identify their business, vocations or occupations.

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Service Name

A mark used in a sale or advertising of service to identify the service of one person, and to distinguish them from the services of others.

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Collective Trademark or Collective Tradename

A mark used by the members of a cooperative, or association or other collective groups or organizations.

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Twenty (20) years

The duration of registration for a trademark, which can be renewed so long as the mark is in use in commerce.

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Patent Law (R.A. 165/ 166)

A right granted or issued by the Philippine Government giving an inventor the right to exclude others from making, using, or selling his invention within the Philippines, for a term of seventeen (17) years without any extension.

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Financial Objectives

Objectives associated with growth in revenues, growth in earnings, higher dividends, larger profit margins, greater return on investment, higher earnings per share, a rising stock price, and improved cash flow.

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Strategic Objectives

Objectives such as a larger market share, quicker on-time delivery than rivals, shorter design-to-market times than rivals, lower costs than rivals, higher product quality than rivals, wider geographic coverage than rivals, achieving technological leadership, and consistently getting new or improved products to market ahead of rivals.

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Vertical Integration

A strategy that allows a firm to gain control over distributors and suppliers, encompassing both forward and backward integration.

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Horizontal Integration

A strategy that refers to gaining ownership and/or control over competitors, often considered the most common growth strategy.

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Forward Integration

A strategy that involves gaining ownership or increased control over distributors or retailers.

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Backward Integration

A strategy of seeking ownership or increased control of a firm’s suppliers.

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Market Penetration

An intensive strategy that seeks to increase market share for present products or services in present markets through greater marketing efforts, including increasing salespersons or advertising expenditures.

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Market Development

An intensive strategy that involves introducing present products or services into new geographic areas.

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Product Development

An intensive strategy that seeks increased sales by improving or modifying present products or services.

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Related Diversification

A diversification strategy where businesses are said to be related when their value chains possess competitively valuable cross-business strategic fits.

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Unrelated Diversification

A diversification strategy where businesses are unrelated when their value chains are so dissimilar that no competitively valuable cross-business relationships exist.

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Retrenchment

A defensive strategy that occurs when an organization regroups through cost and asset reduction to reverse declining sales and profits, also known as a turnaround or reorganizational strategy.

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Divestiture

A defensive strategy that involves selling a division or part of an organization, often used to raise capital for further strategic acquisitions or investments.

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Liquidation

A defensive strategy that involves selling all of a company’s assets, in parts, for their tangible worth, often a recognition of defeat.

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Cost Leadership

A generic strategy that emphasizes producing standardized products at a low per-unit cost for consumers who are price sensitive.

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Differentiation (Type 3)

A generic strategy aimed at producing products and services considered unique to the industry and directed at consumers who are relatively price insensitive.

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Focus

A generic strategy that involves producing products and services that fulfill the needs of small groups of consumers.

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Merger

A means for achieving strategies that occurs when two organizations of about equal size unite to form one enterprise.

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Acquisition

A means for achieving strategies that occurs when a large organization purchases a smaller firm or vice versa.

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Vision Statement

A clear, one-sentence, and short statement that answers the basic question “What do we want to become?”

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Mission Statement

A statement that reveals what an organization wants to be and whom it wants to serve, also known as a creed statement, purpose, or philosophy.

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Internal Audit

The process of gathering, assimilating, and prioritizing information about the firm’s management, marketing, finance and accounting, production and operations, R&D, and MIS operations to reveal the firm’s most important strengths and most severe weaknesses.

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Organizational Culture

A pattern of behavior that has been developed by an organization as it learns to cope with its problem of external adaptation and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think, and feel.

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Planning

The management function that is an essential bridge between the present and the future that increases the likelihood of achieving desired results.

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Organizing

The management function whose purpose is to achieve coordinated effort by defining task and authority relationships, determining who does what and who reports to whom.

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Motivating

The management function that is the process of influencing people to accomplish specific objectives.

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Staffing (Human Resource)

The management function that includes activities such as recruiting, interviewing, testing, selecting, orienting, training, developing, evaluating, rewarding, disciplining, promoting, transferring, demoting, and dismissing employees, as well as managing union relations.

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Controlling

The management function that includes all activities undertaken to ensure that actual operations conform to planned operations.

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Marketing

The process of defining, anticipating, creating, and fulfilling customers’ needs and wants for products and services.

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Customer Analysis

A basic function of marketing that involves the examination and evaluation of consumer needs, desires, and wants, including administering customer surveys and developing customer profiles.

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Selling

A basic function of marketing that includes advertising, sales promotion, publicity, personal selling, sales force management, customer relations, and dealer relations.

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Product and Service Planning

A basic function of marketing that is important when a company is pursuing product development or diversification, including activities such as test marketing, product and brand positioning, and devising warranties.

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Pricing

A basic function of marketing that is affected by five major stakeholders: consumers, governments, suppliers, distributors, and competitors.

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Distribution

A basic function of marketing that includes warehousing, distribution channels, distribution coverage, retail site locations, sales territories, inventory levels and location, transportation carriers, wholesaling, and retailing.

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Marketing Research

A basic function of marketing that involves the systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services.

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Cost/Benefit Analysis

A basic function of marketing that involves assessing the costs, benefits, and risks associated with marketing decisions.

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Financial Ratio

A method used for determining an organization’s strengths and weaknesses in the investment, financing, and dividend areas, computed from an organization’s income statement and balance sheet.

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Breakeven Analysis

The quantity of units that a firm must sell for its total revenues to equal its total costs.

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Production/Operations

Consists of all activities that transform inputs into goods and services, dealing with inputs, transformations, and outputs that vary across industries and markets.

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Management Information Systems (MIS)

A system that receives raw material from both external and internal evaluation of an organization, with the purpose of improving the quality of managerial decisions.

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Value Chain Analysis

The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products, aiming to identify where low-cost advantages or disadvantages exist.

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Benchmarking

An analytical tool used to determine whether a firm’s value chain analysis is competitive compared to those of rivals and thus conducive to winning in the marketplace, by measuring costs of value chain activities across an industry.

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Internal Factor Evaluation (IFE) Matrix

A matrix that summarizes and evaluates the major strengths and weaknesses in the functional areas of a business, and provides a basis for identifying and evaluating relationships among those areas.

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External Audit

The purpose of this is to develop a finite list of opportunities that could benefit a firm as well as threats that should be avoided.

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Industrial Organization (IO) View

The view that advocates that external (industry) factors are more important than internal ones for gaining and sustaining competitive advantage.

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Competitive Intelligence (CI)

A systematic and ethical process for gathering and analyzing information about the competition’s activities and general business trends to further a business’s own goals.

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Porter’s Five Forces Model

A model that analyzes rivalry among competing firms, potential entry of new competitors, potential development of substitute products, bargaining power of suppliers, and bargaining power of consumers.

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Forecasting

Educated assumptions about future trends and events.

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Business Analytics

An Management Information System technique that involves using software to mine huge volumes of data to help executives make decisions, also called predictive analytics, machine learning, or data mining.

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External Factor Evaluation (EFE) Matrix

A matrix that allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information.

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Competitive Profile Matrix (CPM)

A matrix that identifies a firm’s major competitors and its particular strengths and weaknesses in relation to a sample firm’s strategic position, where critical success factors include internal and external issues.

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Input Stage

A three-stage framework for choosing strategies where the purpose is to summarize basic input information for strategy formulation and to quantify subjectivity during early stages.

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Matching Stage

A three-stage framework for choosing strategies where the purpose is to generate feasible alternative strategies by aligning internal strengths/weaknesses with external opportunities/threats.