Strategic Management Practice Flashcards

A comprehensive set of practice flashcards covering the core concepts of Strategic Management, including competitive analysis, corporate strategies, organizational structures, and strategic control based on the lecture Knowledge Pack.

In what two senses is the term 'MANAGEMENT' used in an organization?

(A) As a key group responsible for overseeing organizational affairs and (B) as a set of interrelated functions and processes (Planning, Organising, Directing, Staffing, Control) carried out to achieve objectives.

What is 'Strategy' as defined by William F. Glueck?

A unified, comprehensive and integrated plan to achieve basic objectives of business.

Is strategy a substitute for good management?

No, Strategy is NOT A SUBSTITUTE for good management; it must be flexible and pragmatic to handle emergencies and unanticipated situations.

What are the three levels of strategy in a large organization?

1. Corporate Level (CEO, Board of Directors), 2. Business Level (Divisional Managers), 3. Functional Level (Functional Managers in areas like Marketing or Finance).

What is the difference between Proactive and Reactive strategy?

Proactive strategy consists of planned actions to improve market position, while Reactive strategy consists of adaptive reactions to unforeseen circumstances and changing market conditions.

What are the overall objectives of Strategic Management?

1. To create competitive advantage to outperform competitors, and 2. To guide the company through changes in the environment and react appropriately.

What is 'Strategic Intent'?

The purpose or goals an organization strives to achieve, defining the direction for growth and success and representing long-term market position aspirations.

What is the primary focus of a 'Mission' statement?

An organization's present business scope—'who we are and what we do'—describing current capabilities, customer focus, and business makeup.

Identify the seven areas where strategic planners establish long-term objectives.

1. Profitability, 2. Productivity, 3. Competitive Position, 4. Employee Development, 5. Employee Relations, 6. Technological Leadership, and 7. Public Responsibility.

What are the four components of the PESTLE framework?

Political, Economic, Socio-cultural, Technological, Legal, and Environmental factors.

What are the four stages of the Product Life Cycle (PLC)?

1. Introduction, 2. Growth, 3. Maturity, and 4. Decline.

What are Michael Porter's Five Competitive Forces?

1. Rivalry among existing competitors, 2. Threat of new entrants, 3. Threat of substitutes, 4. Bargaining power of suppliers, and 5. Bargaining power of buyers.

Define 'Experience Curve'.

The efficiency increase gained by workers through repetitive work, resulting in lower unit costs with cumulative production ('learning as we grow').

What are the four criteria for building Core Competencies?

Capabilities must be: 1. Valuable, 2. Rare, 3. Costly to Imitate, and 4. Non-Substitutable.

What are Michael Porter’s three Generic Strategies?

1. Cost Leadership, 2. Differentiation, and 3. Focus (which includes Focused Cost Leadership and Focused Differentiation).

What is the 'Best-Cost Provider Strategy'?

A strategy to offer customers more value for money by providing products with lower costs than rivals for comparable quality or similar prices with better quality and features.

Describe the four types of corporate strategies according to Glueck and Jauch.

1. Stability Strategy, 2. Expansion Strategy, 3. Retrenchment Strategy, and 4. Combination Strategy.

What are the four quadrants of the BCG Growth-Share Matrix?

1. Stars (High growth, high share), 2. Cash Cows (Low growth, high share), 3. Question Marks (High growth, low share), and 4. Dogs (Low growth, low share).

What are the three stages of Kurt Lewin's Change Model?

1. Unfreezing (preparing for change), 2. Changing (redefining behavior patterns), and 3. Refreezing (reinforcing new behavior).

What are the 'Hard elements' in the McKinsey 7S Model?

Strategy, Structure, and Systems.

What are the 'Soft elements' in the McKinsey 7S Model?

Shared Values, Staff, Skill, and Style.

Define the 'SBU' (Strategic Business Unit) structure.

A structure where related businesses are grouped into a manageable unit with its own set of competitors and a manager responsible for strategy and profit performance.

What is an 'Hourglass Structure'?

An organizational structure with three layers: a narrow middle layer (focused on coordination via technology) and wider top and bottom layers.

What is the difference between Transformational and Transactional leadership?

Transformational leadership uses charisma and enthusiasm to inspire people for major changes in turbulent environments, while Transactional leadership focuses on systems design and controlling activities in static environments.

Identify the four types of Strategic Control.

1. Premise Control, 2. Strategic Surveillance, 3. Special Alert Control, and 4. Implementation Control.