Business Policy Midterm TOTAL REVIEW

1. Internal strengths/weaknesses 2. external opportunities/threats 3. Mission Statement

3 things that provide the basis for establishing objectives and strategies

distinctive competencies

A firm's strengths that cannot be easily matched or imitated by competitors. Building competitive advantages involves taking advantage of these

E. Mission Statement

As indicated in the strategic-management model, a clear _______ is needed before alternate strategies can be formulated and implemented. a. long-term objective e. evaluation strategy b. short-term objective d. policy e. mission statement

Synergy

Can be developed through planning. exists when everyone pulls together as a team that knows what it wants to achieve. can result in powerful competitive advantages

Changes in consumer demand

Changes in external forces translate into ________ ___ ___________ ___________ for both industrial and consumer products and services.

consumer demand

Changes in external forces translate into changes in ____________ ____________ for both industrial and consumer products and services.

A. Formulation

During what stage of strategic management are a firm's specific internal strengths and weaknesses determined? a.Formulation b.Implementation c.Evaluation d. Goal-Setting e. Feedback

1. Economic Forces 2. Social, cultural, demographic, and natural environment forces 3. political, governmental and legal forces 4. technological forces 5. competitive forces

External forces can be divided into five broad categories:

gather competitive intelligence and information

First step to performing an external audit:

Break it down into smaller tasks

If your task or goal is large and seems overwhelming what is an effective way to manage your approach to achieving that goal?

Communication

May be the most important word in management

Organizational Culture

Relationships among a firm's functional business activities perhaps can be exemplified best by focusing on ___________ ________________ , an internal phenomenon that permeates all departments and divisions of an organization

aging, population

The ________ American ___________ affects the strategic orientation of nearly all organizations. Ex: Apartment complexes for the elderly, with one meal a day, transportation, and utilities included in the rent, have increased nationwide

Major business functions

The effectiveness of strategy formulation, implementation, and evaluation activities hinges upon a clear understanding of how ___________ __________ __________ affect one another

finite

The purpose of an external audit is to develop a _________ list of opportunities that could benefit a firm and threats that should be avoided.

E. What do we want to become?

The vision statement answers which question? a. How can we increase profitability? b. How can we improve ourselves? c. What is our business? d. Who are our stakeholders? e. What do we want to become?

Top Level: 2-5 years Lower Level: 6 months

Time Horizon for Planning for Top Level Management vs. Lower-level management

True

True/False A declaration of an organization's "reason for being" is the mission statement.

True

True/False A sense of shared expectations among all levels and generations of employees is promoted with a mission statement

False

True/False A vision statement is, in essence, a company's game plan

False

True/False According to Peter Drucker, asking the question "What is our business?" is synonymous with asking the question "What is our vision?"

True

True/False Activities that don't support your goals should be eliminated

True

True/False An objective, logical, systematic approach for making major decisions in an organization is a way to describe the strategic-management process.

True

True/False Analytical and intuitive thinking should complement each other.

True

True/False Anything the firm does especially well compared to rival firms could be considered a competitive advantage.

True

True/False Culture can be a major strength or weakness for the firm

True

True/False For strategies to succeed, a coordinated effort among all the functional areas of business is needed.

True

True/False Goals should support the strategy of the firm

False

True/False If an organization chooses to have both a mission and a vision, the mission statement should be established first.

False

True/False In order to be seen as a high performer you should accept any task before you consider whether you have the time to do it.

True

True/False In order to motivate a workforce effectively, both profit and vision are needed.

True

True/False Mission statements are sometimes difficult to derive because top management may disagree over company objectives

False

True/False Once a firm acquires a competitive advantage, they are usually able to sustain the competitive advantage for an extended period of time.

False

True/False Once you have set your goals there is no need to review them until they are completed

True

True/False One of the fundamental strategy evaluation activities is reviewing external and internal factors that are the bases for current strategies.

False

True/False Resource allocation is included in strategy-formulation activities.

True

True/False Strategy implementation is often considered to be the most difficult stage in the strategic-management process because it requires personal discipline, commitment and sacrifice.

False

True/False Taking on your subordinate's work leads to good employee development

False

True/False The mission statement should be short - preferably one sentence.

True

True/False The process of performing an external audit must involve as many managers and employees as possible.

False

True/False The process of performing an internal audit does NOT closely parallels the process of performing an external audit.

True

True/False The underpinnings of strategic management hinge on managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders and customers worldwide.

False

True/False Top down is the BEST way to create goals

True

True/False Vision and Mission Statements can often be found in the front of annual reports

False

True/False You should never say no to your boss no matter how much work he or she puts on your desk

1. Recognized by everyone as important 2. Clear and Easy to understand 3. Measurable and framed in time 4. Aligned with organizational strategies 5. Achievable but challenging 6. Supported by appropriate rewards

What are characteristics of effective goals (only have to name 3)

Writing them down. (Keep a log)

What is the first step in understanding how you spend your time?

Planning

What is the foundation of management task that managers neglect the most?

Change

What is the only thing certain about the future of any organization?

New jobs

What is the primary reason people move across state lines?

Internal Audit

What provides more opportunity for participants to understand how their jobs, departments, and divisions fit into the whole organization? Internal or External Audit

Swift Adaptation

__________ ___________ is needed today more than ever because changes in markets, economies, and competitors worldwide are accelerating.

External forces

affect the types of products developed, the nature of positioning and market segmentation strategies, the type of services offered, and the choice of businesses to acquire or sell.

Objectives and strategies

are established with the intention of capitalizing upon internal strengths and overcoming weaknesses.

Organizational culture

can be defined as a pattern of behavior that has been developed by an organization as it learns to cope with its problem of external adaptation and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think, and feel.

Identifying and evaluating external opportunities and threats

enables organizations to develop a clear mission, to design strategies to achieve long-term objectives, and to develop policies to achieve annual objectives.

Planning

essential bridge between the present and the future that increases the likelihood of achieving desired results. Enables one to avoid the trap of working extremely hard but achieving little

Financial ratio analysis

exemplifies the complexity of relationships among the functional areas of business.

external audit

focuses on identifying and evaluating trends and events beyond the control of a single firm, such as increased foreign competition, population shifts to the Sunbelt, an aging society, consumer fear of traveling, and stock market volatility. Reveals key opportunities and threats confronting an organization so that managers can formulate strategies

Strategic management

highly interactive process that requires effective coordination among management, marketing, finance/accounting, production/operations, R&D, and management information systems managers.

Organizing

means determining who does what and who reports to whom. Purpose g is to achieve coordinated effort by defining task and authority relationships.

Internal Audit

requires gathering and assimilating information about the firm's management, marketing, finance/accounting, production/operations, research and development (R&D), and management information systems operations