SOBA 202 Unit 4

Factor 2

Assess the current reality

In developing its future strategy, CVS is focusing on Amazon, which is expanding into the healthcare business. What stage of the strategic management process does this represent?

Assess the current reality

Strategic position emerges from three sources:

(1) few needs, many customers; (2) broad needs, few customers; and (3) broad needs, many customers.

Rivalry Among Competitors

Changes

Factor 3

Establish the mission, vision, and values statements

Factor 5

Execute the strategies

Apple, a company with a strong product line, probably has strong bargaining power of suppliers.

False

Paige and Parker are writing their values statement for their new consignment shop, Then & Now. Because they want their employees and business to grow and reach goals, Then & Now's values statement should be positive and inspiring, describing what the organization stands for and its core priorities.

False

Several studies found that strategic planning does not benefit smaller companies, as they very seldom see improvements in financial performance from this type of planning.

False

Strategic positioning involves performing the same activities as rivals in a similar way, but at a lower cost.

False

Factor 1

Formulate corporate, business, and functional strategies

Factor 4

Maintain strategic control

Bargaining Powers of Buyers

Online

Jim and his partner are studying the strengths and weaknesses of their construction business, Open Concept Construction, as well as researching the opportunities and threats in the external environment. Jim and his partner are conducting a

SWOT analysis

Threat of Substitute Products or Services

Soda

Threat of New Entrants

Speakers

______________ require(s) a long-term orientation.

Strategic planning

McAllister's Fruit Farm is one of several stores in the county where customers can purchase locally grown fruits and vegetables. However, Mrs. McAllister also offers weekly workshops in her store on topics such as canning, healthy eating, and how to grow a garden, which no other store in the county does. By offering these unique workshops, the McAllisters are engaging in strategic positioning.

True

Strategy implementation is putting strategic plans into effect, which means dealing with roadblocks within the organization's structure and culture and seeing if the right people and control systems are available to execute the plans.

True

The owners of a computer repair shop want to better formulate strategies, so they are doing a SWOT analysis to understand the strengths and weaknesses within their company and the opportunities and threats of the external environment. These are some of the benefits of doing a SWOT analysis.

True

Bargaining Power of Suppliers

Vendors

As the CEO of a mid-size airline, Karyn knows that most commercial airplanes are manufactured by either Airbus or Boeing. To mitigate the __________ of the airline industry, Karyn explores options for her company to manufacture its own airplanes.

bargaining power of suppliers

CVS' purchase of Aetna is a ________ level strategy.

corporate

The least desired spot in the BCG matrix is that of a

dog

Currently, the companies Kodak and Google are examples of _____ and _____ positions, respectively.

dog; star

Kendall's Home Decorators believes that the demand for its services will expand greatly because a real-estate developer has just purchased 100 acres in town. The developer is planning to build 1,000 condominium units on the property. The managers of Kendall's Home Decorators are making a projection for the future, also known as a

forecast

Hunter, who is starting a painting business, plans to write down the purpose of his painting business and his company's reason for being. Hunter is writing his

mission statement

Companies in industries where there is little cost, including time or money, necessary to enter the marketplace are most vulnerable to the threat of

new entrants

Startups in the Internet industry are often considered to be

question marks

Which of Porter's forces is influenced by the other four?

rivalry among competitors

A(n) ________ is the most desired position within the BCG matrix.

star

Adam, the owner of The Toy Box (a toy store), has chosen his products carefully. They are all handmade of wood; none are cheap games made of cardboard and paper. He knows he will be selling his toys to both adults and children; for example, his expensive chess and backgammon sets are quite expensive because the board and pieces are all made of wood by local artists and craftsmen. He knows that his customer base will not include parents who are looking for an inexpensive toy for their children or to give as a birthday gift; there is another store in town that offers mass-produced games. As part of his marketing outreach, Adam offers "game nights" where he sets up game boards and invites local teens and adults to take part in light-hearted competitions, where the winners receive a 10 percent discount to a game at the Toy Box. All of Adam's activities are aimed at giving Adam a sustainable competitive advantage through

strategic positioning

Many customers have visited Patty's Diner for decades because of the diner's friendly service. Most customers feel that Patty's is the friendliest placed around. In a SWOT analysis, the friendly service at Patty's is an example of a company

strength

Assume you are completing a SWOT analysis for CVS. Amazon's entrance into the healthcare business would fall under which part of the analysis?

threats

For domestic or regional airlines or routes, there is always the option of taking a car, bus or train. This describes which of Porter's Five Competing Forces?

threats of substitution

An organization's vision statement states _____. For example, the Cleveland Clinic's vision statement says that it "strives to be the world's leader in patient experience, clinical outcomes, research, and education."

what the company wants to become and where it wants to go strategically