MGMT 3013 Coonce OKstate exam 2 review

His company makes professional-quality products that are accessible to the recreational angler

mission statement

The company wants to provide a chance for every person to reach his or her highest fishing potential without sacrificing their retirement savings to do it

Vision Statement

To grow the company by 50% over the next five years

strategic planning

Her department plans to introduce 10 revolutionary new lures to the company's already exciting lineup of products over the next two years

tactical planning

Project managers have the designs complete now and are working to streamline the production tools to maximize efficiencies and thus bring costs down

operational planning

Goals should challenge us but should also be doable. Bethany tries to motivate her personal training clients by telling them she wants them to increase the weight they are lifting by 500%

attainable

Goals should include a clear time frame for completion. In early September, Lars tells his team they have until December 1st to devise a new cost reduction plan

target dates

Goals should be quantifiable in some way. Tiana tells her auto salespeople that she expects them to close at least three new car sales per month

measurable

Goals should somehow be linked to the organization's mission. Quinn's company is very customer-focused. She wants her customer service staff to decrease the time it takes to resolve a customer complaint by 10%

results oriented

Goals should be unambiguous and not vague. Dylan tells his interns that he would like for them complete their data entry work more efficiently

specific

This plan encompasses a wide range of activities or projects

program

This plan outlines a set response to particular problems or circumstances

procedure

This type of plan is smaller in scope and less complex

project

This plan designates a specific required action

rule

This plan gives a general idea of how to respond to a designated situation

policy

This plan is used for activities that are not likely to be repeated again

single use

Place each of the steps in the planning and strategic management process below in the correct order

establish the mission and vision. assess the current reality. formulate the grand strategy and strategic tactical and operational plans. implement the strategy. maintain strategic control.

Describes the image the organization wants to project

mission statement

Inspires enthusiasm and encourages commitment

vision statement

Illuminates the organization's attitude toward its employees

mission statement

Is intended to guide all of the actions in the organization

value statement

Is easily understood and well-articulated

vision statement

Outlines the organization's customer base

mission statement

Expresses the company's worldview

value statement

Is appropriate for the times and for the organization

vision statement

Limits itself to a small number that employees can recall when making decisions

value statement

Articulates the geographical locations where the company competes

mission statement

Unchanging; As applicable in 100 years as it is today

value statement

Reflects high ideals

vision statement

When Domino's listens to what customers want, to gauge their likes and dislikes as well as new products they might be craving, Domino's is engaging in which stage of the planning and strategic management process (Figure 5.1)

assess the current reality

Once Domino's decided to offer salads, it partnered with Ready Pac Foods to offer each Domino's pizza location prepackaged salads. What type of planning would each location be doing in anticipation of receiving the prepackaged salads

operational planning

Which of the following would be an effective SMART goal for Domino's wedding registry

Each Domino's location will cater at least six weddings by the end of next year.

Domino's introduced salads at one-third of its stores to test their performance before rolling them out to all stores. The launch of salads at these select stores represents which step of the planning/control cycle (Figure 5.5)

carry out the plan

When Nestlé's middle managers focus on planning for the next 6-24 months, what type of planning are they engaged in

tactical

Which of Nestlé's planning documents answers this question: What do we want to become

vision statement

In order to achieve its goals, Nestlé needs to map its priorities across different areas of the company and then track success. What can directly help it do this

means-end chain

How can Nestlé break down its long-term, sustainability-based strategies into short-term targets or goals

develop an operating plan

Apple introduced its Homepod to the home sound system market that had been previously dominated by Sonos

Threat of New Entrants

Walmart demanded that all its vendors cut their prices by 15 percent

Bargaining Power of Suppliers

If you don't like the price of something at your local store, you can probably find it online with two-day shipping at a lower price

Bargaining Power of Buyers

Consumers are drinking less diet soda in favor of things like flavored zero calorie water and fresh juices

threat of substitute products or services

On Amazon, the average product's cost changes every ten minutes based on data the company collects including rivals' prices

rivalry among competitors

The R&D program at the company produces world-class products

strength

Our product is targeted to young professionals under 35 years of age. That group is growing

opportunities

The equipment the company owns is last generation and does not have the latest technology

weaknesses

There have been several up and coming companies that are beginning to enter our market space

threats

Word is that a new highway is being built in the next couple of years, making it easier to transport our products from the factory

opportunities

The employees who work for us are highly skilled and leaders in their field

strengths

Management does not provide a big budget to support the world-class staff that work for the company

weaknesses

The company uses a fair amount of short-term debt financed through the bank. Economic projections indicate that interest rates may rise in the future and credit will be more difficult to obtain

threats

High growth rate, high market share—a definite keeper

stars

Risky new ventures of which some will take off, others will not

question marks

Have good market share, but slow growth; income can be used for other winners or potential winners

Cash cows

Slow growth, not much market share—should get rid of these

dogs

"Enjuba exists to better represent the quality and handiwork of the African people through fair trade that benefits the producers, customers, and society at large."

Step 1: Establish the mission, vision, and values statements

Bill and Vance complete an assessment of the market

Step 2: Assess the current reality

Bill and Vance need to develop a one- to five-year strategy that communicates Enjuba's general goals as well as how the goals will be achieved

Step 3: Formulate corporate, business, and functional strategies

Bill and Vance intend to put their plan into place and implement it by overcoming any market resistance

Step 4: Strategic implementation

Bill and Vance must consistently review the market offering against their original plan to ensure that their product is unique and being produced and marketed effectively

Step 5: Maintain strategic control

The research and development department and the marketing department make some alterations to a current product with the intention of attracting new customers

growth strategy

After the recent recession, the company sold off vacant buildings

defensive strategy

The research and development department and the production department do a great job when we ramp up production, but the customer service department takes time to catch up

stability strategy

The recent expansion has been successful, but we don't want to spread ourselves too thin

stability strategy

After recent expansion, the company wants to avoid growing too quickly

stability strategy

The top managers are considering a merger

growth strategy

What business are we in

corporate level strategy

What amount should we invest in employee development

business level strategy

What products and services shall we offer

corporate level strategy

What's the best way to integrate our department's latest innovation with older versions of the product

functional level strategy

How should our division market our new program

functional level strategy

What sum will we allocate toward facilities expansion

business level strategy

Which joint ventures and/or acquisitions should we pursue

corporate level strategy

How much should we set aside for new product development

business level strategy

How should we structure compensation for those working on our team's new initiative

functional level strategy

Rex is participating in a job rotation program at his new workplace, which gives him the chance to get to know as many aspects of the company as possible

understand the business

Paz has been an attorney for ten years and decides that she can stop attending annual continuing education seminars now that she knows everything there is to know about her job

broaden your task and functional knowledge

Dahlia is a recent college graduate at her first architectural job. She's just getting started financially and decides not to join her field's major professional association because she thinks that it's not worth the annual fee

understand the business

Idris makes a commitment to have coffee with one person he doesn't know well at his organization each week so that he can learn about their history with the company

broaden your task and functional knowledge

The goal of this strategy is to offer unique products or services of superior value to a wide target market

differentiation strategy

The goal of this strategy is to offer unique products or services of superior value to a narrow target market

focused differentiation strategy

The goal of this strategy is to keep the costs, and therefore prices of a product or service low and target a wide market

cost leadership strategy

The goal of this strategy is to keep the costs and prices of a product or service low and target a narrow market

cost focus strategy

Dollar Tree sells all items for $1 and caters to middle-class customers

cost focus strategy

Waffle House has over 2,000 locations, keeps a simple menu that rarely changes (and hence spends little on R&D to develop new menu items), and most customers' tickets are around $7 or $8. Waffle House appeals to a broad range of consumers, including truck drivers, business travelers, college students, and families

cost leadership strategy

Afterglow Cosmetics sells cosmetics that are manufactured in a gluten-free facility, and all of its products are certified gluten-free. Afterglow cosmetics prices are in line with other high-end cosmetics brands

focus differentiation strategy

Starbucks serves premium quality coffee beverages and food items and has over 28,000 locations across the globe. The company also offers bottled versions of some of its products in grocery stores and has a branded liqueur through its partnership with Jim Beam

differentiation strategy

The firm's resource does not allow it to exploit an opportunity or neutralize a threat

firm will be at a competitive disadvantage

The firm's resource is not controlled by just a few firms, in other words, several competing firms exist

firm will be equally competitive

The firm's resource is not particularly costly for other firms to imitate

firm will have a temporary competitive advantage

The firm's resource is valuable, rare, and costly to imitate

firm will have a sustained competitive advantage

Luxury fashion brand Coach, Inc. acquired Kate Spade New York—another luxury fashion and lifestyle brand—in 2017

related diversification

Fast fashion retail giant, Zara is able to get designs from the catwalk to the retail store at incredible speeds. Zara can do this because it has acquired most of its supply chain, including designers, manufacturers, and distributors

vertical integration

Clorox Company, best known for bleach and cleaning products, purchased Burt's Bees, best known for its natural beauty and personal care products, in 2007

unrelated diversification

In 2018, Novartis, a Swiss multinational pharmaceutical company, acquired Avexis, a clinical-stage gene therapy company

related diversification

In the 1930s, Mars Incorporated (maker of Snickers and other popular candies) purchased Chappell Brothers canned dog food company. Much of Mars' business today comes from pet food brands such as Whiskas and Pedigree. In 2017, Mars acquired VCA, a company that owns hundreds of dog day care facilities and animal hospitals, to add to its Mars Petcare portfolio

unrelated diversification

In 2018, Boeing aerospace company announced its plans to buy KLX, a company that distributes aerospace fasteners and consumables

vertical integration

There is a greater pool of knowledge to draw from

Advantage of group decision making

Decisions may be made quicker using satisficing

Disadvantage of group decision making

A small group of people may talk the longest and the loudest.

Disadvantage of group decision making

People bring different perspectives.

Advantage of group decision making