Studied by 40 people
refers to a unique plan designed to achieve a competitive position in the market.
strategy
consists of analyses, decisions, and actions, an organization undertakes to create, implement, and sustain competitive advantages.
Strategic Management
Strategic Management is concerned with the analysis of strategic goals (mission, vision, and strategic objectives) along with the internal and external environments of the organization.
Analyses
Strategic decisions address two (2) basic questions: What industries should we compete in? And how should we compete in those industries?
Decisions
Strategic actions require leaders to allocate necessary resources and to bring the intended strategies to reality.
Actions
This perspective refers to how efforts must be directed at what is best for the total organization, not just a single functional area.
Directs the organization toward overall goals and objectives.
Stakeholders are those individuals, groups, and organizations interested in the organization's success, including owners, employees, customers, suppliers, the community at large, and so on.
Includes multiple stakeholders in decision-making
Needs to incorporate short-term and long-term perspectives
Managers must maintain both a vision for the future of the organization and a focus on its present operating needs.
In this situation, what are the correct defination answer? Operations may decide to schedule long production runs of similar products to lower unit costs. However, the standardized output may counter what the marketing department needs to appeal to a demanding target market.
Directs the organization toward overall goals and objectives
If the overwhelming emphasis is on generating profits for the owners, employees may become isolated, customer service may suffer, and the suppliers may resent demands for pricing concessions.
Includes multiple stakeholders in decision-making
Managers must maintain both a vision for the future of the organization and a focus on its present operating needs.
Needs to incorporate short-term and long-term perspectives
In this situation, If a company has a three-to-five-year plan, this long-term plan should have sequences of short-term plans. Once the long-term goal is defined, management must define the short- term steps necessary to achieve it.
Needs to incorporate short-term and long-term perspectives
It is the difference between doing the right thing (effectiveness) and doing things right (efficiency).
Recognizes trade-offs between efficiency and effectiveness
In this situation, what are the correct defination answer? Managers must make many trade-offs. In doing so, managers must allocate and use resources wisely (efficiency) but still direct their efforts toward attaining overall organizational objectives (effectiveness).
Recognizes trade-offs between efficiency and effectiveness
During this phase, organizations emphasize preparing and meeting annual budgets.
Phase 1: Basic financial planning
During this phase, organizations usually extend time frames covered by the budgeting process (3-5 years).
Phase 2: Forecast-based planning
During this phase, organizations attempt to understand basic marketplace phenomena.
Phase 3: Externally oriented planning
During this phase, the top management organizes planning groups of managers and key employees from various departments and workgroups.
Phase 4: Strategic management
This strategy defines the markets and business in which a company will operate.
Corporate-level strategy
This strategy emphasizes strengthening the company’s competitive position of products or services.
Business level strategy
This strategy is formulated to achieve some objectives of a business unit by maximizing resource productivity.
Functional level strategy
In this situation, what are the correct defination answer? Newspapers slowly adapt to the current technological trends because most news and information are already available via the Internet. Other newspaper companies may perceive that some people are still willing to pay for news delivered daily on a piece of paper.
Benefit
This strategy is usually created at the field level to achieve immediate objectives.
Operating level strategy
It pertains to the value offered by a product or service to the market.
Benefit
It pertains to a selected group of customers within a business' available market at which a business aims its marketing efforts and resources.
Target market
In this situation, what are the correct defination answer? Newspapers' target market is drifted towards older people who are not comfortable or capable of getting their news online.
Target market
It pertains to the rivalry between companies that sell similar goods and services.
Competition
In this situation, what are the correct defination answer? Newspaper companies thought their competition was with other newspaper companies until they realized it was the advent of modernization because of the Internet.
Competition
This pertains to the strategy of a company that involves producing a product or providing a service at a lower cost than its competitors.
Cost advantage
In this situation, what are the correct defination answer? A global company that employs cost advantage is Unilever, which is influenced by its large operation and massive presence in the market.
Cost advantage
This pertains to a company's strategy that involves marketing the qualities of a product that sets it apart from other similar products and uses that difference to drive consumer choice.
Differentiation strategy
In this situation, what are the correct defination answer? A global company that employs a differentiation strategy is Apple, which creates its operating system (IOS) that distinguishes its product as superior apart from its competitors.
Differentiation strategy
Note
Flashcard