management test 3

What term describes what a firm does well relative to its competitors?

Distinctive competence

Which of the following characteristics relates to a business-level strategy?

The area of responsibility usually assigned to the divisional-level managers

Which of the following characteristics relates to the product life cycle?

The cycle of birth, growth, maturity, and decline of a product

Which of the following refers to the initial stage of the product life cycle when the product is introduced?

Birth

Which of the following characteristics relates to contingency plans?

Alternate courses of action to be undertaken if certain organizational or environmental conditions change

SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis

- evaluating the organization's internal strengths and weaknesses and the opportunities and threats associated with the business's external environment - SWOT analysis emphasizes that the fit between a firm and its environment is of paramount importance, and the firm's strategy should be built around this match

4. Evaluating the Gap between Current Position & Goals (Gap Analysis)

- how much difference there is between the current situation and its goals, the gap between actual and anticipated states - are changes needed to close this gap?

operational goals

- more specific and address activities that must be performed before tactical goals can be fulfilled - short-term goals that are addressed to first-line managers and usually apply to specific work operations that lead to the production of goods or services

business-level strategy

- plan that identifies the specific actions an individual SBU should undertake to meet corporate strategy - usually assigned to the divisional-level managers

strategic control

- the feedback mechanism in the strategic management process - compares the firm's actual performance to its intended performance

2. assess the current situation

-Evaluating the current status of the internal organization - 1st concern is determining the extent of the organization's resources: financial assets, employee skills, technology, and data about the work process - 2nd Concern is the firm's working relationship with its suppliers, financial backers, and consumers.

Strategy Formulation

-happens after SWOT Analysis - and conducted a SWOT analysis, it can formulate a strategy through strategic planning. Top management does the formulation of a firm's overall strategy, with input from lower level managers

steps in planning

1. Create Mission Statement 2. Assess the Current Situation 3. Stating Goals 4. Evaluating the Gap between Current Position & Goals 5. Specifying Assumptions about the Future 6. developing the plan itself 7/8. implementing the plan and evaluating how well it achieved the goals for which it was intended

What is meant by focus?

A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment

1. mission statement

A formal written declaration of the organization's mission

plan(ning)

A set of activities intended to achieve goals, whether for an entire organization, department, or an individual

strategic goals

Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services

what are strategic goals

Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services

What term is used to describe the product life cycle stage characterized by dramatic increases in the product's market share?

Growth

_____ of a plan is where the organization goes from the "thinking" mode to the "doing" mode.

Implementation

What is meant by decline?

The product life cycle stage marked by decreases in the product's market share

strategy

a course of action for implementing strategic plans and achieving strategic goals

diversification

a strategy of increasing sales by introducing new products into new markets

strategic management

all the processes an organization undertakes to develop and implement its strategic plan

contingency plans

contingency plans

The scope and resource deployment components of strategy for the enterprise as a whole

corporate strategy

What term describes a business-level strategy aimed at achieving the overall lowest cost structure in an industry?

cost leadership

The first step in strategic planning is

determining the mission and strategic goals

What name is given to a business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price?

differentiation

When a firm offers a unique good or service to a customer at a premium price, it is following the business-level strategy of

differentiation

MidAmerican Energy Holdings Company has doubled its wind energy capacity by installing windmills and high-tech batteries to make it a "cleaner" utility company. In high-tech renewable energy, this company has a

distinctive competence

What term describes what a firm does well relative to its competitors

distinctive competence

You sell Gourmet Mushrooms (GMs) at $100 an ounce. You have a secret source of supply, jealously guarded. Your GMs are better than your competitors' mushrooms, and only the very wealthiest Americans buy them. You are using the business strategy called

focus

benefits of planning

focus, coordination, motivation

What name is given to the final result that a firm wishes to achieve?

goal

Which of the following refers to a definition of an organization's fundamental purpose and its basic philosophy?

mission

What term is used to describe a formal written declaration of the organization's mission that often includes the firm's philosophy, its primary products and markets, the intended geographic scope, and the nature of the relationships between the firm, its stakeholders, and society?

mission statement

Functional Level Strategy

operations, research and development, finance, and human resources management

...

overall plan for what all the businesses in an organization should be doing

Which of the following refers to a set of activities intended to achieve goals, whether for an entire organization, department, or an individual?

plan

scope

refers to the number of markets in which a company intends to compete or the number of products it intends to sell

four components of strategy

scope resource deployment synergy distinctive competence

goals should be

specific, measurable, achievable, realistic, timely

types of goals

strategic, operational, tactical

Which of the following refers to a general statement of actions an organization intends to take or is taking that is based on the fit of the organization with its external environment?

strategy

synergy

the combined performance of its subunits is greater than if those units were operating alone

tactical goals

the intermediate goals of the firm, are designed to stimulate actions necessary for achieving the strategic goals

distinctive competence

what a firm does well relative to its competitors