IMS 180 Exam 2
how is declining market share a problem for barnes and nobel
This current problem is caused by their rival Amazon. Amazon has been taking business from Barnes & Noble for years. As Barnes & Noble's retail and online sales are declining, Amazon is currently opening more bookstores. This is another threat to the going concern of Barnes & Noble. Barnes and Noble will most likely lose the remainder of their market share because they cannot compete with Amazon both in online sales and brick and mortar.
3 ways to manage conflict
avoidance defusion confrontation
All organizations have at least four types of resources (or assets) that can be used to achieve desired objectives:
(1) financial resources, (2) physical resources, (3) human resources, and (4) technological resources.
In what stage of the strategic management model does the "implement strategic management issues lay"
After generate, evaluate and select strategies, and before implement strategic marketing, finance and finance
liquidation is associated with what Ch bankruptcy
CH 7
generate cash in excess of their needs should be managed to maintain their strong position for as long as possible
Cash Cows - Quadrant III
presents information to convince people of the need for change
Educative Change Strategy
the extent that an organization's operations and actions protect, mend, and preserve rather than harm or destroy the natural environment
Sustainability
reveals how a firm's operations impact the natural environment discloses to shareholders information about the firm's labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices
Sustainability report
T or F A corporate objective to become more lean and mean must today include consideration for the fact that a good home life contributes immensely to a good work life.
T
Board of Director Duties and Responsibilities
Control and oversight over management Adherence to legal prescriptions Consideration of stakeholders/ interests Advancement of stockholders' rights
Steinhoff problems
2017 the company announced that it could not release its annual financial reports because of "accounting irregularities." its chief executive, Markus Jooste had resigned and admitted in a letter to his colleagues that he had made some big mistakes, further creating suspicion for the company. These announcements 90% of its stock price to fall.
"a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between these assertions and established criteria, and communicating the results to interested users"
Auditing
exemplified by exchanging members of conflicting parties so that each can gain an appreciation of the other's point of view or holding a meeting at which conflicting parties present their views and work through their differences
Confrontation
how is declining stores a problem for barnes and nobel
Barnes & Noble has had declining store and online sales for the last 7 quarters. After their earnings report revealed poor holiday sales, the price of Barnes & Noble's shares dropped 15%. Selling movies and music is not helping bring customers into their stores because those can both be easily streamed online.
R&D Approaches for Implementing Strategies
Be the first firm to market new technological products. Be an innovative imitator of successful products, thus minimizing the risks and costs of start-up. Be a low-cost producer by mass-producing products similar to but less expensive than products recently introduced.
Seven Principles of Admirable Business Ethics
Be trustworthy Be open-minded Honor commitments and obligations Do not misrepresent, exaggerate, or mislead Be a visibly responsible community citizen Utilize your accounting practice to eliminate questionable activities Do unto others as you would have them do unto you
a group of individuals who are elected by the ownership of a corporation to have oversight and guidance over management and who look out for shareholders' interests
Board of Directors
principles of conduct within organizations that guide decision making and behavior
Business Ethics
To ensure that the code of ethics is read, understood, believed, and remembered, periodic ethics workshops are needed to sensitize people to workplace circumstances in which ethics issues may arise.
Code of Business Ethics
barnes and nobel problems
Declining Sales Declining Market Share
toys r us problems
Decrease in sales Digital problems Debt Vendors got skittish
Type 3 cost leadership deals with _________, which is a strategy aimed at producing products and services considered unique industry-wide and directed at consumers who are relatively price-insensitive
Differentiation
compete in a slow- or no-market-growth industry businesses are often liquidated, divested, or trimmed down through retrenchment
Dogs - Quadrant IV
3 basic activities of strategy evaluation
Examine the underlying bases of a firm's strategy. Compare expected results with actual results. Take corrective actions to ensure that performance conforms to plans.
T or F An organization can perhaps be least effective when its workforce mirrors the diversity of its customers.
F, most effective
how do firms use mobile computing
Mobile tracking of employees Mobile apps for customers
refers to employees reporting any unethical violations they discover or see in the firm
Whistle-blowing
Long-term objectives are needed at the ______, ________, and _______levels of an organization.
corporate, divisional, and functional
seeking ownership or increased control over competitors. Ex: BB&T acquired Susquehanna Bancshares
horizontal integration
Harley davidson problems
-Recalled 250,000 bikes made between 2008 and 2011 for having faulty brakes -Plant closure in Kansas City -Metal tariffs -New competition in India from Royal Enfield, where HD had a 60% dominance currently -Millennial not adopting motorcycling the same way the Baby Boomers did
Horizontal Integration Guidelines
-When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government -When an organization competes in a growing industry -When increased economies of scale provide major competitive advantages -When an organization has both the capital and human talent needed -When competitors are faltering due to a lack of managerial expertise
Related Diversification Guidelines
-When an organization competes in a no-growth or a slow-growth industry -When adding new, but related, products would significantly enhance the sales of current products -When new, but related, products could be offered at highly competitive prices -When new, but related, products have seasonal sales levels that counterbalance an organization's existing peaks and valleys -When an organization's products are currently in the declining stage of the product's life cycle -When an organization has a strong management team
Retrenchment Guidelines
-When an organization has a distinctive competence but has failed consistently to meet its goals -When an organization is one of the weaker competitors in a given industry -When an organization is plagued by inefficiency, low profitability, and poor employee morale -When an organization fails to capitalize on external opportunities and minimize external threats -When an organization has grown so large so quickly that major internal reorganization is needed
Divestiture Guidelines
-When an organization has pursued a retrenchment strategy and failed to accomplish improvements -When a division needs more resources to be competitive than the company can provide -When a division is responsible for an organization's overall poor performance -When a division is a misfit with the rest of an organization -When a large amount of cash is needed quickly -When government antitrust action threatens a firm
liquidation guidelines
-When an organization has pursued both a retrenchment strategy and a divestiture strategy, and neither has been successful -When an organization's only alternative is bankruptcy -When the stockholders of a firm can minimize their losses by selling the organization's assets
Product Development Guidelines
-When an organization has successful products that are in the maturity stage of the product life cycle -When an organization competes in an industry characterized by rapid technological developments -When major competitors offer better-quality products at comparable prices -When an organization competes in a high-growth industry -When an organization has strong research and development capabilities
Forward Integration Guidelines
-When an organization's present distributors are especially expensive -When the availability of quality distributors is so limited as to offer a competitive advantage -When an organization competes in an industry that is growing -When an organization has both capital and human resources to manage distributing their own products -When the advantages of stable production are particularly high -When present distributors or retailers have high profit margins
Backward Integration Guidelines
-When an organization's present suppliers are especially expensive or unreliable -When the number of suppliers is small and the number of competitors is large -When the organization competes in a growing industry -When an organization has both capital and human resources -When the advantages of stable prices are particularly important -When present suppliers have high profit margins -When an organization needs to quickly acquire a needed resource
Market Penetration Guidelines
-When current markets are not saturated with a particular product or service -When the usage rate of present customers could be increased significantly -When the market shares of major competitors have been declining while total industry sales have been increasing -When the correlation between dollar sales and dollar marketing expenditures historically has been high -When increased economies of scale provide major competitive advantages
Market Development Guidelines
-When new channels of distribution are available that are reliable, inexpensive, and of good quality -When an organization is very successful at what it does -When new untapped or unsaturated markets exist -When an organization has the needed capital and human resources to manage expanded operations -When an organization has excess production capacity -When an organization's basic industry is rapidly becoming global in scope
Unrelated Diversification Guidelines
-When revenues derived from an organization's current products would increase significantly by adding the new, unrelated products -When an organization competes in a highly competitive or a no-growth industry, as indicated by low industry profit margins and returns -When an organization's present channels of distribution can be used to market the new products to current customers -When the new products have countercyclical sales patterns compared to present products -When an organization's basic industry is experiencing declining annual sales and profits -When an organization has the capital and managerial talent needed to compete successfully in a new industry -When an organization has the opportunity to purchase an unrelated business that is an attractive investment opportunity -When there exists financial synergy -When existing markets for an organization's present products are saturated -When antitrust action could be charged against an organization that historically has concentrated on a single industry
kodak problems
-huge debt generated in the past by a fundamental transition from being a film-based business - lack of Innovation and transformation
Stages in SWOT
-list all the firms key opp, threats, strengths, and weaknesses. -match internal strengths and external opportunities, record as SO Strategies - match internal weaknesses and external opp, label as WO strategies - match strengths and threats, label as ST Strategies - match weaknesses with threats, label as WT strategies
Note that a key difference between related and unrelated diversification is that the former should be based on _________, whereas the latter is based more on __________.
-some commonality in markets, products, or technology -profit considerations
general electric current problems
-stock and sales failure, legal disputes, and GE's Power and Capital profit fall -GE losing money due to overpaying its oil-and-gas properties, forcing those businesses to merge with Baker Hughes -current troubles are result of failure to prepare the company for heightened competition in a slow global energy market
sears problem
1. Rise of Online Shopping 2. Failing to invest in the rebuild the brick-and-mortar business ○ Stopped investing in physical stores 3. Severely understaffed 4. Liquidity problems are getting worse ○ Selling off a majority of their assets 5. Running out of merchandise to stock floors ○ Suppliers and vendors are canceling orders 6. Too much focus on Shop Your Way Program 7. LAMPERT'S MANAGEMENT STYLE AND BUSINESS STRATEGIES
what stage of the management model does Generate, Evaluate and Select Strategies lie
After long term objectives and before independent strategic management issues
Strategists use common quantitative criteria to make three critical comparisons:
Comparing the firm's performance over different time periods Comparing the firm's performance to competitors' Comparing the firm's performance to industry averages
6 Means for Achieving Strategies
Cooperation Among Competitors Joint Venture/Partnering Merger/Acquisition Private-Equity Acquisitions First Mover Advantages Outsourcing/Reshoring
For _______________ to succeed, both firms must contribute something distinctive, such as technology, distribution, basic research, or manufacturing capacity
Cooperation Among competitors
T or F The least used structure is the functional or centralized type because this structure is the simplest and least expensive of the seven alternatives.
F, most widely used
T or F In contrast to reengineering, restructuring is concerned more with employee and customer well-being than shareholder well-being.
F, reengineering is concerned more with employee and customer well-being than shareholder well-being
refer to the benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms
First Mover Advantages
involves giving orders and enforcing those orders
Force Change Strategy
Alternative Bases for Market Segmentation
Geographic Region, country size, city size, density, climate Demographic Age, gender, family size, family life cycle, income, occupation, education, religion, race, nationality Psychographic Social class, personality Behavioral Use occasion, benefits sought, user status, usage rate, loyalty status, readiness stage, attitude toward product
includes designing, producing, and marketing products with global needs in mind, instead of considering individual countries alone
Global Strategy
process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations
Globalization
IE Matrix Three Mejor Regions
Grow and build Hold and maintain Harvest or divest
is a set of standards adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner
ISO 14001
is a popular strategy that occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity.
JV
Out of touch with Reality Doesn't want to hear anything that challenges his vision Fosters a climate of fear among the company's most senior managers and employees Rarely seen in office Unfair control as both a landlord and a tenant Created a decentralized organizational structure ○ Good for asset management but not for retail profitability
LAMPERT'S MANAGEMENT STYLE AND BUSINESS STRATEGY
ESPN current problems
Limited viewership Service myopia Decreasing income The recent lack of sports broadcasting Seasonality of the industry
Rules for Using Product Positioning as a Strategy-Implementation Tool
Look for the hole or vacant niche. Don't serve two segments with the same strategy. Don't position yourself in the middle of the map.
subdividing of a market into distinct subsets of customers according to needs and buying habits widely used in implementing strategies enables a small firm to compete successfully with a large firm by maximizing per-unit profits and per-segment sales.
Market Segmentation
introducing present products or services into new geographic area. Ex: gap opened its first five stores in China
Market development
most complex of all designs because it depends upon both vertical and horizontal flows of authority and communication; can result in higher overhead because it creates more management positions.
Matrix Structure
________ asserts that organizations have no obligation to do any more for society than is legally required.
Milton Friedman
Organizations that conduct business operations across national borders
Multinational Corporations
Principles of Good Governance
No more than two directors are current or former company executives. The audit, compensation, and nominating committees are made up solely of outside directors. Each director owns a large equity stake in the company, excluding stock options. Each director attends at least 75 percent of all meetings. The board meets regularly without management present and evaluates its own performance annually. The CEO is not also the chairperson of the board. There are no interlocking directorships (where a director or CEO sits on another director's board).
_________ provide a basis for consistent decision making by managers whose values and attitudes differ. Serve as standards by which individuals, groups, departments, divisions, and entire organizations can be evaluated.
Objectives
involves companies hiring other companies to take over various parts of their functional operations, such as human resources, information systems, payroll, accounting, customer service, and even marketing
Outsourcing/Reshoring
specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals instruments for strategy implementation
Policy
are acquiring and taking private a wide variety of companies almost daily in the business world
Private equity acquisitions
entails developing schematic representations that reflect how your products or services compare to competitors' on dimensions most important to success in the industry Also called perceptual mapping
Product Positioning
Seeking increased sales by improving present products or services or developing new ones. Ex: Amazon just began offering its own line of baby diapers and wipes
Product development
allows an organization to examine the expected results of various actions and approaches allows an organization to compute projected financial ratios under various strategy-implementation decisions
Projected Financial Statements
in the Grand Strategy Matrix, what quadrant represents: continued concentration on current markets (market penetration and market development) and products (product development) is an appropriate strategy
Quad 1
in the Grand Strategy Matrix, what quadrant represents: unable to compete effectively need to determine why the firm's current approach is ineffective and how the company can best change to improve its competitiveness
Quad 2
in the Grand Strategy Matrix, what quadrant represents: must make some drastic changes quickly to avoid further decline and possible liquidation Extensive cost and asset reduction (retrenchment) should be pursued first
Quad 3
in the Grand Strategy Matrix, what quadrant represents: have characteristically high cash-flow levels and limited internal growth needs and often can pursue related or unrelated diversification successfully
Quad 4
objectively indicates which alternative strategies are best uses input from Stage 1 analyses and matching results from Stage 2 analyses to decide objectively among alternative strategies
Quantitative Strategic Planning Matrix (QSPM)
Organization must decide whether to strengthen them by pursuing an intensive strategy (market penetration, market development, or product development) or to sell them
Question Marks - Quadrant I
______ proclaims that organizations have tremendous social obligations.
Ralph Nader
involves reconfiguring or redesigning work, jobs, and processes for the purpose of improving cost, quality, service, and speed does not usually affect the organizational structure or chart, nor does it imply job loss or employee layoffs
Reengineering
adding a new but related product or services. Ex: FB acquired the text message firm WhatsApp for 19B
Related diversification
involves reducing the size of the firm in terms of number of employees, number of divisions or units, and number of hierarchical levels in the firm's organizational structure primary benefit sought from restructuring is cost reduction
Restructuring
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix helps managers develop four types of strategies:
SO (strengths-opportunities) Strategies WO (weaknesses-opportunities) Strategies ST (strengths-threats) Strategies WT (weaknesses-threats) Strategies
use a firm's internal strengths to take advantage of external opportunities. All managers would like their organization to be in a position in which internal strengths can be used to take advantage of external trends and events
SO Strategies
use a firm's strengths to avoid or reduce the impact of external threats. This does not mean that a strong organization should always meet threats in the external environment head-on.
ST strategies
attempts to convince individuals that the change is to their personal advantage
Self-interest Change Strategy
concerns what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups Firms should strive to engage in social activities that have economic benefits
Social Policy
actions an organization takes beyond what is legally required to protect or enhance the well-being of living things
Social Responsibility
consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix (CPM)
Stage 1
__________ summarizes the basic input information needed to formulate strategies. __________ focuses on generating feasible alternative strategies by aligning key external and internal factors. __________ involves a single technique, the Quantitative Strategic Planning Matrix (QSPM).
Stage 1, called the input stage Stage 2, called the matching stage Stage 3, called the decision stage
techniques include the Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, the Strategic Position and Action Evaluation (SPACE) Matrix, the Boston Consulting Group (BCG) Matrix, the Internal-External (IE) Matrix, and the Grand Strategy Matrix
Stage 2
reveals the relative attractiveness of alternative strategies and thus provides objective basis for selecting specific strategies
Stage 3
represent the organization's best long-run opportunities for growth and profitability
Stars - Quadrant II
seek to determine alternative courses of action that could best enable the firm to achieve its mission and objectives. Strategists never consider all feasible alternatives that could benefit the firm because there are an infinite number of possible actions and an infinite number of ways to implement those actions.
Strategy analysis and choice
characteristics of an effective evaluation system
Strategy evaluation activities must be economical Activities should be meaningful Activities should provide timely information Activities should be designed to provide a true picture of what is happening Activities should not dominate decisions
-Transferring competitively valuable expertise, technological know-how, or other capabilities from one business to another -Combining the related activities of separate businesses into a single operation to achieve lower costs -Exploiting common use of a known brand name -Using cross-business collaboration to create strengths
Synergies of Related Diversification
T or F Clearly stated and communicated objectives are critical to success in all types and sizes of firms. Annual objectives are often stated in terms of profitability, growth, and market share by business segment, geographic area, customer groups, and product.
T
T or F For a matrix structure to be effective, organizations need participative planning, training, clear mutual understanding of roles and responsibilities, excellent internal communication, and mutual trust and confidence
T
T or F Having an effective management information system (MIS) may be the most important factor in differentiating successful from unsuccessful firms.
T
T or F It is always more difficult to do something (strategy implementation) than to say you are going to do it (strategy formulation)! Although inextricably linked, strategy implementation is fundamentally different from strategy formulation.
T
T or F Social media marketing has become an important strategic issue. Marketing has evolved to be more about building a two-way relationship with consumers than just informing consumers about a product or service.
T
T or F Strategists should strive to preserve, emphasize, and build on aspects of an existing culture that support proposed new strategies.
T
T or F A bad sustainability record will hurt the firm in the market, jeopardize its standing in the community, and invite scrutiny by regulators, investors, and environmentalists.
T
T or F Honest differences of opinion, turf protection, and competition for limited resources can inevitably lead to conflict. Conflict can be defined as a disagreement between two or more parties on one or more issues.
T
T or F Many consumers expect that animals will be treated humanely and that organic options be available.
T
The Balanced Scorecard approach to strategy evaluation aims to balance long-term with short-term concerns, to balance financial with nonfinancial concerns, and to balance internal with external concerns.
The Balanced Scorecard
a strategy evaluation and control technique; need of firms to "balance" financial measures that are oftentimes used exclusively in strategy evaluation and control with non-financial measures such as product quality and customer service. when effective it contains a carefully chosen combination of strategic and financial objectives tailored to the company's business
The Balanced Scorecard
concerns the extent to which a firm minimizes harmful effects on the environment caused by its activities and continually monitors and improves its own environmental performance
The ISO 14000
groups similar divisions into strategic business units and delegates authority and responsibility for each unit to a senior executive who reports directly to the chief executive officer can facilitate strategy implementation by improving coordination between similar divisions and channeling accountability to distinct business units
The Strategic Business Unit (SBU) Structure
low-cost strategy that offers products or services to a wide range of customers at the lowest price available on the market. What type of cost leadership
Type 1
best-value strategy that offers products or services to a wide range of customers at the best price-value available on the market. What type of cost leadership
Type 2
low-cost focus strategy that offers products or services to a niche group of customers at the lowest price available on the market. what type of cost leadership
Type 4
best-value focus strategy that offers products or services to a small range of customers at the best price-value available on the market. What type of cost leadership?
Type 5
adding new, unrelated products or services. Ex: Kroger and Whole Foods Marker are cooking meals and becoming restaurants
Unrelated diversification
aim at improving internal weaknesses by taking advantage of external opportunities
WO strategies
are defensive tactics directed at reducing internal weakness and avoiding external threats. An organization faced with numerous external threats and internal weaknesses may indeed be in a precarious position
WT strategies
xerox problems
Xerox's Palo Alto Research Center (PARC) Management Failure Company Problems (competition, lack of leadership, sales declining bc of email and media, disappointment of customers and shareholders)
occurs when a large organization purchases (acquires) a smaller firm or vice versa
acquisition
in what stage of the strategic management model is the implementing of marketing finance and accounting
after independent strategies and before measuring and evaluating
in what stage of the management model does one establish long term objectives
after vision & mission statement and external & internal audit. Before generating, evaluating and selecting strategies
The Strategic Position and Action Evaluation (SPACE) Matrix, another important Stage 2 matching tool, is illustrated on this slide. Its four-quadrant framework indicates whether
aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization
includes such actions as ignoring the problem in hopes that the conflict will resolve itself or physically separating the conflicting individuals
avoidance
seeking ownership or increased control of a firms supplies. Ex: starbucks purchased a coffee farm
backward integration
the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty a crime in most countries of the world, including the United States
bribery
common issues that happen at work
bribery, and work place relationships
The major benefit of the BCG Matrix is that it draws attention to the
cash flow, investment characteristics, and needs of an organization's various divisions
Hansen and Smith explain that strategic planning involves "_____________________________."
choices that risk resources and trade-offs that sacrifice opportunity
Most organizations simultaneously pursue a combination of two or more strategies, but a _________can be exceptionally risky if carried too far
combination strategy
The Grand Strategy Matrix is based on two evaluative dimensions: (1) ____________ on the x-axis and (2) __________ on the y-axis. Appropriate strategies for an organization to consider are listed in sequential order of attractiveness in each quadrant of the Grand Strategy Matrix.
competitive position and market (industry) growth
when evaluating a strategy, look for
consonance, consistency, advantage, and feasibility
can be defined as alternative plans that can be put into effect if certain key events do not occur as expected.
contingency plannng
Strategy making is not just a task for top executives. Middle- and lower-level managers also must be involved in the strategic-planning process to the extent possible. In large firms, there are actually four levels of strategies:
corporate, divisional, functional, and operational. generic strategies
emphasizes producing standardized products at a very low per-unit cost for consumers who are price-sensitive. Five types: Type 1, 2, 3, 4, & 5
cost leadership
Probably the three most widely read books on competitive analysis in the 1980s were Michael Porter's Competitive Strategy (1980), Competitive Advantage (1985), and Competitive Advantage of Nations (1989). According to Porter, strategies allow organizations to gain competitive advantage from three different bases: _________Porter calls these bases ________.
cost leadership, differentiation, and focus.
Besides net profit from operations and the sale of assets, two basic sources of capital for an organization are
debt and equity.
includes playing down differences between conflicting parties while accentuating similarities and common interests
defusion
selling a division or part of an organization and is often used to raise capital for further strategic acquisitions or investments. Ex: Sears holding divested its Lands End division to Sears shareholders
divesture
Functional activities are performed both centrally and in each separate division Organized by geographic area, product or service, customer, or process
divisional structure
Why Strategy Evaluation is More Difficult Today
environment is more complexity The increasing difficulty of predicting the future with accuracy The increasing number of variables The rapid rate of obsolescence of even the best plans The increase in the number of both domestic and world events affecting organizations The decreasing time span for which planning can be done with any degree of certainty
Refers to the company annd the employees having respect for environment: water, air, plants, animals Must make decisions about how they get rid of waste
environmental sustainability
include growth in revenues, growth in earnings, higher dividends, larger profit margins, greater return on investment, higher earnings per share, a rising stock price, improved cash flow, and so on.
financial objectives
gaining ownership or increased control over distributors or retailers. Ex: amazon began rapid delivery services in some US cities
forward integration
groups tasks and activities by business function, such as production/operations, marketing, finance/accounting, research and development, and management information systems
functional structure
An effective product positioning strategy meets two criteria:
it uniquely distinguishes a company from the competition it leads customers to expect slightly less service than a company can deliver
selling all of a company's assets, in parts, for their tangible worth. Ex: The Trump Taj Mahal in AC faces liquidation
liquidation
The results expected from pursuing certain strategies 2-to-5 year timeframe
long term objectives
seeking increased market share for present products or services in present markers through greater marketing efforts. Ex: Under Armour signed tennis champion Andy Murry to a 4 year, $23 m marketing deal
market penetration
final stage in the strategic management model
measure and evaluate
occurs when two organizations of about equal size unite to form one enterprise
merger
reduce the amount of time managers spend making decisions. Policies also clarify what work is to be done and by whom. promote delegation of decision making to appropriate managerial levels where various problems usually arise. clarify what can and cannot be done in pursuit of an organization's objectives.
policies
set boundaries, constraints, and limits on the kinds of administrative actions that can be taken to reward and sanction behavior let both employees and managers know what is expected of them, thereby increasing the likelihood that strategies will be implemented successfully provide a basis for management control and allow coordination across organizational units
policies
Market segmentation decisions directly affect the marketing mix variables:
product, place, promotion, and price
What are some desired characteristics of objectives
quantitative measurable realistic understandable challenging hierarchical obtainable congruent across departments
defined as distributing an organization's "assets" across products, regions, and segments according to priorities established by annual objectives. vital strategy-implementation activity.
resource allocation
occurs when an organization regroups through cost and asset reduction to reverse declining sales and profits also called a turnaround or reorganizational strategy designed to fortify an organization's basic distinctive competence
retrenchment
regrouping through cost and asset reduction to reverse declining sales and profit. Ex: Staples closed 250 stores and reduced by 50% the size of other stores
retrenchment
include a larger market share, quicker on-time delivery than rivals, shorter design-to-market times than rivals, lower costs than rivals, higher product quality than rivals, wider geographic coverage than rivals, achieving technological leadership, consistently getting new or improved products to market ahead of rivals, and so on.
strategic objectives
The IE Matrix is based on two key dimensions:
the IFE total weighted scores on the x-axis and the EFE total weighted scores on the y-axis
The strategic-management process is conceptually the same for multinational firms as for purely domestic firms; however,
the process is more complex for international firms as a result of more variables and relationships.
Main issues to consider for business environment and business environment: ________________; adv. of opening makerkets and customers and new courses for raw materials and component parts at cheaper price. Opens up cheater workforce. paid less per hour
threat of competitors
The Net Worth Method Total Shareholders' Equity (SE) minus (Goodwill + Intangibles) The Net Income Method Net Income x Five Price-Earnings Ratio Method (Stock Price / EPS) x NI Outstanding Shares Method # of Shares Outstanding x Stock Price
types of corporate valuation