MGT 4800J - Chapter 1
What automobile maker emerged as one of the pioneers of strategic management among industry leaders?
Henry Ford
Strategy as perspective
How executives interpret the competitive landscape around them.
In what context was the earliest-known discussion of strategy?
In the Old Testament of the Bible - Moses leading Hebrews out of enslavement in Egypt
Intended strategy
The plan that an organization hopes to execute
How does a company examine their opportunities and threats?
Through external events and trends
How do companies examine their strengths and weaknesses?
Through firm resources
Step 1 in the strategic management process
Understanding of strategy and performance
Strategy's Five P's
1. Plan 2. Ploy 3. Pattern 4. Position 5. Perspective
Define Plan:
A carefully crafted set of steps that a firm intends to follow in order to be successful
Define strategic plans
A carefully crafted set of steps that a firm intends to follow to be successful.
Two pivotal events that firmly established management as a field of study took place in 1980. What were these two events?
1. The creation of the Strategic Management Journal 2. The publication of Competitive Strategy: Techniques for Analyzing Industries and Competitors by Harvard professor Michael Porter
Franchising
An organization (called a franchisor) grants the right to use its brand name, products, and processes to other organizations (franchisees) in exchange for an up-front payment (franchise fee) and a percentage of the franchisees' revenues (royalty fee)
Emergent Strategy
An unplanned direction that arises in response to unexpected opportunities and challenges
"Winning a ____ without ____ is the best way to win" - Sun Tzu
Battle, fighting
Step 2 in the strategic management process
Environmental and internal scanning for trends and events that affect the overall economy
Strategic management
Examines how actions and events involving top executives (such as Steve Jobs), firms (Apple), and industries (the tablet market) influence a firm's success or failure.
T/F: All strategic ploys are legal
FALSE
T/F: Strategic management is a process that does NOT require the ability to manage change
FALSE --> Strategic management is a process that requires the ability to manage change
T/F: when firms try and please everyone, business often thrives
FALSE --> When businesses try to please everyone they often find themselves without a competitive positioning that is needed or long-term success
Define: strategos
Greek verb for "army leader"; refers to defeating an enemy by effectively using resources
Two examples of a franchises in the food industry
McDonald's and Subway
Deliberate Strategy
Parts of the intended plan that an organization continues to pursue over time.
What is the Greek Trojan horse an example of regarding to strategy?
Ploy
What is a more subtle but equally important aspect of a business model?
Providing customers with a good or service more cheaply than they can create it themselves.
Define Trojan horse in modern times?
Refers to gestures that appear on the surface to be beneficial to the recipient but that mask a sinister intent --> example: computer viruses
Non-realized Strategy
Refers to the abandoned parts of the intended strategy
What is the essence of strategy?
Strategic plans
Step 3 in the strategic management process
Strategy formulation by developing specific strategies and actions
Step 4 in the strategic management process
Strategy implementation via crafting an effective organizational structure and corporate culture
Define SWOT
Strengths, Weaknesses, Opportunities, and Threats
T/F: Ethics have long been an important issue within the strategic management field
TRUE
T/F: Firms can carve out a position by performing certain activities in a different manner than their rivals
TRUE
China strategist and philosopher Sun Tzu thoughts on strategy wrote _____ that is still carefully studied today by business and military leaders.
The Art of War
What key motivator led US universities to create strategic management courses in their undergrad and masters of business administration programs?
The Ford Foundation 'capstone' course
Define Pattern:
The degree of consistency in a firm's strategic actions
Strategic pattern
The extent to which a firm's actions over time are consistent
Economics of sales
A cost advantage created when a firm can produce a good or service per unit at a lower price due to producing a g/s in large quantities.
Define Position:
A firm's place in the industry relative to its competitors
Strategic position
A firm's place in the industry relative to its competitors
Define business model
A model that describes the process through which a firm hopes to earn profits
Realized Strategy
A plan of action that an organization actually follows
Define Ploy:
A specific move designed to outwit or trick competitors
Strategic ploy
A specific move designed to outwit or trick competitors