Ch. 7 Strategy
Definition:Goal
A goal is a desired future result that the organization strives to achieve
What is a SWOT analysis?
A situation analysis A model to help determine strategy Identifies Strengths, Weaknesses, Opportunities, Threats
Sustainable competitive advantage occurs when an organization can stay ahead in four areas
Being responsive to customers Innovation Quality Efficiency
Business level strategy
Concerned with how the business unit competes within the industry.
Steps of Strategic Management
Crafting the Mission Evaluating Internal Strengths and Weaknesses Analyzing the External Opportunities and Threats Developing Plans Executing Action Plan
Corporate strategy
Determines the types of business in which the firm will compete.
Three Main Competitive Strategies
Differentiation Cost Leadership Niche/Focus
Characteristics of Effective Goals
Effective goals should be specific, measurable, relevant, challenging but achievable, and linked to appropriate time periods and rewards. Each lower level goal should be directly tied to the accomplishment of a higher level goal.
According to your text a high level strategy for the organization that provides basic direction and long-term goals is a?
Grand Strategy
What are the two indices of the BCG Matrix? Hint: (Market ___ ___, and the Market___)
Growth Rate, Share
Grand strategy
High level strategy that provides basic direction and long-term goals.
External Environments
Opportunities and Threats
According to Jim Collins what are the 3 circles of strategy?
Passionate about, Best At, Economic Engine
What are the five components of Porter's five forces model?
Power of Buyers, Power of Suppliers, Substitute Products, Rivalry amongst Competitors, Threat of new Entrants
Internal Environments
Strengths and Weaknesses
Process Analysis - Value Chain Analysis
The value chain consists of the internal activities in which a firm engages to create value for its customers. This can include a number of primary and support activities, including sales, marketing, research and development, accounting, legal services, etc.
Strategic positioning
attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company "performing different activities from rivals, or performing similar activities in different ways"
Strategy
large-scale action plan that sets the direction for an organization
Strategic Management
process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals