Management 3000 - Exam 2 - Chapter 5 & 7

Strategic Intent

Focuses organizational energies on achieving a compelling goal

Timely

Goals need to be ______ by linking to specific timetables and "due dates"

Specific

Goals need to be ________ by clearly targeting key results and outcomes to be accomplished

Challenging

Goals need to be __________ by including a stretch factor that moves toward real gains (stretch goals are challenging)

Measurable

Goals need to be ___________ by describing results so they can be measured without ambiguity (i.e. objectively, facts, figures, data)

Attainable

Goals need to be _____________, although challenging, realistic, and possible to achieve

action oriented.....advantage oriented

Good planning makes us ___________, priority oriented, ____________, and change oriented

Priority oriented

Making sure the most important things get first attention

Planning

Many people claim that controlling is the most difficult management process to achieve, while __________ is the most important

Liquidation

Occurs when a business closes and sells it assets to pay creditors. Most extreme form of retrenchment.

Competitive Advantage

Operating in successful ways that are difficult to duplicate. (Want this to be sustainable)

Stretch goals

Performance targets that require hard work

Focused Differentiation Strategy

Porter's Competitive Strategies. Offers a unique products to a specific market segment. (i.e. NetJets offering air travel by fractional ownership of private jets to wealthy customers)

Differentiation Strategy

Porter's Competitive Strategies. Offers products and services that are unique and different from competitors. (Strategic objective is to attract customers who stay loyal to the firm's products and lose interest in competitors)

Focused Cost Leadership Strategy

Porter's Competitive Strategies. Seeks the lowest costs of operations within a special market segment

Cost Leadership Strategy

Porter's Competitive Strategies. Seeks to operate with lower costs than competitors. Succes with this strategy requires tight cost and managerial controls

Planning

Process of setting goals and objectives and determining how best to accomplish/achieve them

Retrenchment strategy

Radical changes in operations to correct weaknesses. Can be either by Liquidation or restructuring strategies

SWOT analysis.......organizational........environmental

______________ is a tool used in strategic planning to determine the current status of the organization. Involves internal assessment of the _____________ strengths and weaknesses, as well as external assessment of _____________ opportunities and threats.

Qualitative forecasting

_________________ is a forecasting method that relies on expert opinion

Change oriented

anticipating problems and opportunities so they can be best dealt with

Complacency trap

being lulled into inaction by current successes or failures

Advantage oriented

ensuring that all resources are used to best advantage

Policy

A ________ communicates broad guidelines for making decisions

Procedure (rules)

A __________ defines specific actions to be taken in specific situations

Financial budgets

A ___________ is a budget that projects cash flows and expenses

Operating budgets

A ____________ is a budget that anticipates sales and revenue

Zero-based budget

A _____________ allocates resources as if each budget was brand new

Strategy

A comprehensive plan guiding resource allocation to achieve long-term organization goals

Core Competency

A special strength that gives an organization a competitive advantage (ie. Harpos=igniting nostalgic memories)(Wendys=speed and order fulfillment)(Mizzou=teachers, upper level education NOT parking/transportation)

Crowdsourcing

A special type of social media strategy that strategically uses the internet to engage customers and potential customers in providing opinions and suggestions on products and their design. (i.e. Threadless allows customers to submit t-shirt designs which are voted on, with top ones selected for production)

Non-monetary

____________ budgets allocate resources

Production plans

_____________ are plans that deal with methods of technologies needed by people in their work

Operational plans

_____________ identify activities to implement strategic plans

Financial plans

______________ are plans that deal with money required to support various operations

Strategic plans......Vision

______________ identify long-term directions for the organization. __________ is the purpose for the organization and also expresses what it should do in the future.

Functional plans

___________ identify roles of functional areas

activities...... projects

Budgets commit resources to ____________, programs, or ____________

Corporate strategy

Directions and guidelines for use of resources. Asks "In what industries and markets should we compete?"

Vertical Integration strategy

Expansion by acquiring existing suppliers (i.e. automobile industry buying parts suppliers) or distributors (i.e. Pepsi purchasing some of their major bottlers)

Diversification strategy

Expansion occurs by entering new business areas (i.e. pepsico began as pepsi; now much more; related~same industry, unrelated~different industries)

Growth Strategy

Expansion through current operations

Concentration strategy

Expansion within an existing business area that the firm has experience and expertise in (i.e. diet coke as a growth market)

Functional Strategy

Guides activities within one specific area of operations. Asks "How can we best utilize resources within the function to support implementation of the business strategy?"

Business Strategy

Identifies how a strategic business unit or division will compete in its product or service domain. Asks "How are we going to compete for customers within this industry and in this market?"

Action oriented

Keeping a results-driven sense of direction

three or more years

Long-range plans usually cover __________. Few people are comfortable planning this far ahead

Restructuring strategy

Reduces the scale or mix of operations. Less extreme and more common form of retrenchment

year or less

Short-range plans usually cover a _______________

Implement and evaluate the plan

Steps in Management Process. Fifth step that involves taking action; measure progress and revise plan if needed

Define objectives

Steps in Management Process. First step that establishes where you want to go, when you get there, and how far off you are along the way. Involves stretch goals

Analyze alternatives and make a plan

Steps in Management Process. Fourth step that involves choosing the alternatives most likely to accomplish objectives

Determine Current status compared to objectives

Steps in Management Process. Second step that looks at where you presently stand in reaching objectives. Identify strengths and weaknesses

Develop premises regarding future conditions

Steps in Management Process. Third step that generates alternative scenarios for what may happen. Identify for each scenario things that may help or hinder

e-business strategy

Strategically using the internet to gain competitive advantage.

Strategy formulation

The process of creating strategies (review current situation, analyze organizational and external environment, develop new strategies)

Strategic Management

The process of formulating and implementing strategies

Strategy Implementation

The process of putting strategies into action

Quantitative forecasting

___________ is a forecasting method that relies on mathematical models and statistical analysis

Marketing plans

____________ are plans that deal with the requirements of selling and distributing goods or services

Downsizing

Type of Restructuring Strategy. Decreasing the size of operations. Often makes the news. Research shows that this is most successful when cutbacks are done selectively and focused on key performance objectives.

Divesture

Type of Restructuring Strategy. Involves the selling off of parts of the organization to refocus attention on core business areas (cut costs, improve operating efficiency)

Chapter 11 Bankruptcy

Type of Restructuring Strategy. Protects an insolvent firm from creditors during a period of reorganization to restore profitability. Goal is to emerge as a strong and profitable business (like GM and Chrysler)

B2C Strategy (Business to Customer)

Type of e-business strategy that uses IT and web portals to vertically link organizations with customers

B2B Strategy (Business to Business)

Type of e-business strategy that uses IT and web portals to vertically link organizations with members of their supply chains.

Social Media Strategy

Type of e-business strategy that uses social media to better engage with an organizations customers. clients, and audiences in general

high barrier to entry..... weak supplier and buyer power

Under Porter's Five Forces an attractive industry involves low rivalry, _________________, few or no substitue products, _______________

intense rivalry......substitute products

Under Porter's Five Forces an unattractive industry involves ____________, easy entry, ___________, powerful suppliers and customers.

internal strengths.....external threats

When conducting a SWOT analysis we should match ________________ to external opportunities and avoid internal weaknesses possible exposure to _______________

Forecasting..... substitutes

_________ attempts to predict the future. Relies on human judgement, which could be wrong.They are plaining aides, not planning __________

Facilities plans

___________ are plans that deal with facilities development and work layouts

Human resource plans

___________ are plans that deal with the recruitment, selection, and placement of people into various jobs