MGMT CH 4

Strategic leadership

________: the ability of top management to convey a compelling vision of what they want to achieve to subordinates.

Coordination

________: ensures that all managers within organization all pull is same direction towards future desired state.

differentiation

Using ________ or cost- leadership (or both) is the to adapt to market changes.

Accuracy

________: collect and use all available information in the planning process.

cluster of decisions

Strategy: ________ and actions that managers take to help an organization attain its goals.

Department

________ /function level: functional managers responsible for planning and strategy- making necessary to increase efficiency and effectiveness within their function (e.g.

Participation

________: allows managers to ________ in decision- making about appropriate goals and strategies.

Level of rivalry

________: increased competition results in lower profits.

Flexibility

________: plans can be altered and changed if the situation changes.

Porters

________ Five Forces model: used to analyze potential profitability of entering and competing within a particular industry.

Vision

________: reveals "big picture "of organization, its dream for future.

Business level strategy

________: specific methods a division will use to compete effectively against rivals in industry.

SWOT analysis

________: identifies organizational strengths (S), weaknesses (W), opportunities (O) and threats (T)

external environment

Rolling plan: updated and amended every year to reflect changes in the ________.

Crisis management plans

________: formulated to deal with possible future crises.

Substitutes

________: more available substitutes tend to drive prices and profits lower.

Organizational plan

________: results from the planning process and details goals of the organization and specifies how managers intend to attain them.

Scenario contingency planning

________: generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions.

Corporate level strategy

________: plan of action concerning which industries and countries an organization should invest its resources in.

Strategy formulation

________: analysis of an organizations current situation followed by the development of strategies to accomplish the mission and achieve goals.

Gantt chart

________: graphic bar chart used to schedule tasks, responsibilities and timelines.

Plan of action

________ to improve ability of each department to create value consistent with corporate- and business- level strategies.

Corporate level

________: top managers responsible for planning and strategy- making for organization as a whole.

Power of customers

________: if there are only a few large buyers, they can bargain down prices.

Business level

________: divisional managers responsible for planning and strategy within their particular division or unit.

business level strategy

Divisions ________ and structure necessary to achieve divisional goals.

Differentiation

________: managers gain a competitive advantage by distinguishing an organizations products from competitors in dimensions such as:

Corporate level strategy

________: specifies in which industries and national markets an organization intends to compete and why.

Business level strategy

________: plan to gain a competitive advantage in particular market or industry.

Planning

process that managers use to identify and select suitable goals and courses of action for an organization

Organizational plan

results from the planning process and details goals of the organization and specifies how managers intend to attain them

Strategy

cluster of decisions and actions that managers take to help an organization attain its goals

formulate a strategy

corporate, business, and functional levels

implement the strategy

assign responsibility and allocate resources

evaluate the strat

what measures of success will be used

Vision statement

broad declaration of the big picture of the organization and/or a statement of its dreams for future

Mission statement

broad declaration of purpose that identifies the organization's products and customers and distinguishes the organization from competitors

Direction & purpose

what goals organization is trying to achieve and strategies to achieve them

Participation

allows managers to participate in decision-making about appropriate goals and strategies

Coordination

ensures that all managers within organization all pull is same direction towards future desired state

Control

specifies who is responsible for putting the strategies into action to achieve the goals

Unity

at any time only one central, guiding plan is put into operation to achieve an organizational goal

Continuity

an ongoing process in which managers build and refine previous plans

Accuracy

collect and use all available information in the planning process

Flexibility

plans can be altered and changed if the situation changes

Corporate level

top managers responsible for planning and strategy-making for organization as a whole

Business level

divisional managers responsible for planning and strategy within their particular division or unit

Department / function level

functional managers responsible for planning and strategy-making necessary to increase efficiency and effectiveness within their function (e.g

top level managers

corporate level plans , long term

middle managers

tactical plans, business plans

first line managers

short term, functional procedures

Corporate level plan

top managements decisions       concerning organizations mission and goals, overall       trategy and structure

Corporate-level strategy

specifies in which industries and national markets an organization intends to compete and     why

Business level strategy

specific methods a division will use to compete effectively against rivals in industry

Functional-level plan

states goals that managers of each function will pursue to help division attain business-level goals to support achievement of corporate goals

Functional-level strategy

plan of action that managers of individual functions follow to improve the ability of each function to perform task-specific activities to

Long-term

five years or more

Intermediate-term

between one and five years

Short-term

one year or less

Rolling plan

updated and amended every year to reflect changes in the external environment

Standing plans

used where programmed decision making is appropriate

Single-use plans

developed to handle non-programmed decision making in unusual situations

Planning

5 Step Process

Strategy formulation

analysis of an organizations current situation followed by the development of strategies to accomplish the mission and achieve goals

SWOT analysis

identifies organizational strengths (S), weaknesses (W), opportunities (O) and threats (T)

level of rivalry

increased competition results in lower profits

potential for entry

easy entry leads to lower prices and profits

power of customers

if there are only a few large buyers, they can bargain down prices

substitutes

more available substitutes tend to drive prices and profits lower

Corporate-level strategy

plan of action concerning which industries and countries an organization should invest its resources in

Business-level strategy

plan to gain a competitive advantage in particular market or industry

Cost leadership

managers gain a competitive advantage by driving down organizational costs

Differentiation

managers gain a competitive advantage by distinguishing an organizations products from competitors in dimensions such as

Exceptions to rule

in some organizations, managers drive down costs while differentiating their products

Focused low-cost

serving only one segment of the market and being the lowest-cost organization in that segment

Focused differentiated

serving only one segment of the market and trying to be the most differentiated organization serving that segment

Plan of action to improve ability of each department to create value consistent with corporate

and business-level strategies

The balanced scorecard (BSC)

a way to track and measure progress toward goals from a number of perspectives