Mod 9

strategic alternatives

Reduce costs and adapt to local markets.

What is a characteristic of a traditional strategic planning approach?

The CEO and the head of planning get together to devise a corporate plan, which is then handed to the operating people for execution.

strategic planning

The process by which an organization determines where it is going in the future, how it will get there, and how it will assess whether and to what extent it has achieved its goals is known as

What is a disadvantage of bottom-up planning?

There is no guarantee that the sum total of all the affiliates' goals will coincide with those of headquarters.

How have the new directions in planning affected companies?

They have brought operating managers into the planning process.

International strategy can be described as

a plan that guides the way firms makes choices about developing and deploying resources.

Jefferson Materials Corp. has developed a fire-resistant fabric that no one else has been able to replicate. It is used throughout the world in firefighting equipment and supplies. Since it is the only company making the product, customers are willing to pay a premium for the fabric. In this scenario, the fire-resistant fabric has helped the company develop a(n)

competitive advantage.

Timmerman Holding Corp. created a business recovery center 20 miles from its headquarters where employees could work if anything should happen to their main office. This would allow the company to continue doing business without interruption in the wake of a critical event. The business recovery center is an example of a

contingency plan.

To create a competitive advantage that is sustainable over time, the international company should try to develop competencies that

create value for customers and for which they are willing to pay.

Knowledge that is easy for an individual to express clearly in words, pictures, or formulas is known as

explicit.

Lexon Corp. produces high-nutrition breakfast products. As it enters into foreign markets, it faces strong pressures for both reducing costs and adapting products for local markets. Based on this, the company should use a

global strategy.

Companies pursuing a transnational strategy usually

have less decentralized manufacturing operations.

Companies pursuing a transnational strategy usually

have simple organizational structures and processes within and across regions.

Performance measures are done to assess

if the strategy and its implementation are proceeding successfully.

Changes in the way corporate planning is done today include

interaction with important customers, distributors, and suppliers.

The planning method that appears to be becoming more popular is

iterative.

The practices that organizations and their managers use for identifying, creating, acquiring, developing, dispersing, and exploiting competitively valuable knowledge is known as

knowledge management.

Companies pursuing a global strategy typically have

low levels of transportation and tariff costs.

A broad statement that defines the organization's purpose and scope is known as a

mission statement

Tactical plans are also known as

operational plans.

In terms of quantifying objectives and goals, most top managers

prefer nonquantifiable, directional goals.

Following the merger of Hintz Corp. and Minor Holdings Corp., the new company issued a list of broad guidelines that managers should use when dealing with problems. These were viewed as general guides that were left to the interpretation of managers. These guidelines are an example of

procedures

Scenarios allow a business to

project possible outcomes of business decisions.

What part of the strategic plan provides managers with an estimate of future revenue to be received and the units to be sold, and also serves as the basis for planning in the other functional areas?

sales forecast

A company would create procedures in order to

specify how certain activities will be carried out.

According to a survey by Bain & Company, since 1993 the management tool most commonly used among global executives is

strategic planning.

Knowledge that an individual has but that is difficult to express clearly in words, pictures, or formulae, and therefore difficult to transmit to others is known as

tacit.

When the international company's planning committee has completed the internal audit aspect of strategic planning, it is ready to examine

the company's international strategy.

What are two important differentiators of strategic plans?

the level of the organization for which it is made and the plan's time horizon

Managers of international companies that are attempting to develop a competitive advantage face a formidable challenge because

time, talent, and money are scarce.

Camille is frustrated at work. The company headquarters is based in the UK and she works in the New York office. Headquarters is constantly changing the directives the company is taking and isn't interested in her thoughts on what's happening in the U.S. market. She knows that the new directives won't help in the U.S. market, but no one will listen to her. Which method of planning does her company use?

top-down

An assessment conducted on the chain of interlinked activities of an organization or set of interconnected organizations, intended to determine where and to what extent value is added to the final product or service is known as

value chain analysis.

A clear, concise description of the fundamental beliefs and priorities expected of the organization's members, reflecting how they are to behave with each other and with the company's customers, suppliers, and other members of the global community is known as a

value statement

A description of the company's desired future position if it can acquire the necessary competencies and successfully implement its strategy is known as a

vision statement.

When managers are analyzing the corporate controllable variables, the three key questions they must address about their business include

who are the company's target customers?