Management 3000 - Exam 2 - Chapter 5 & 7
Strategic Intent
Focuses organizational energies on achieving a compelling goal
Timely
Goals need to be ______ by linking to specific timetables and "due dates"
Specific
Goals need to be ________ by clearly targeting key results and outcomes to be accomplished
Challenging
Goals need to be __________ by including a stretch factor that moves toward real gains (stretch goals are challenging)
Measurable
Goals need to be ___________ by describing results so they can be measured without ambiguity (i.e. objectively, facts, figures, data)
Attainable
Goals need to be _____________, although challenging, realistic, and possible to achieve
action oriented.....advantage oriented
Good planning makes us ___________, priority oriented, ____________, and change oriented
Priority oriented
Making sure the most important things get first attention
Planning
Many people claim that controlling is the most difficult management process to achieve, while __________ is the most important
Liquidation
Occurs when a business closes and sells it assets to pay creditors. Most extreme form of retrenchment.
Competitive Advantage
Operating in successful ways that are difficult to duplicate. (Want this to be sustainable)
Stretch goals
Performance targets that require hard work
Focused Differentiation Strategy
Porter's Competitive Strategies. Offers a unique products to a specific market segment. (i.e. NetJets offering air travel by fractional ownership of private jets to wealthy customers)
Differentiation Strategy
Porter's Competitive Strategies. Offers products and services that are unique and different from competitors. (Strategic objective is to attract customers who stay loyal to the firm's products and lose interest in competitors)
Focused Cost Leadership Strategy
Porter's Competitive Strategies. Seeks the lowest costs of operations within a special market segment
Cost Leadership Strategy
Porter's Competitive Strategies. Seeks to operate with lower costs than competitors. Succes with this strategy requires tight cost and managerial controls
Planning
Process of setting goals and objectives and determining how best to accomplish/achieve them
Retrenchment strategy
Radical changes in operations to correct weaknesses. Can be either by Liquidation or restructuring strategies
SWOT analysis.......organizational........environmental
______________ is a tool used in strategic planning to determine the current status of the organization. Involves internal assessment of the _____________ strengths and weaknesses, as well as external assessment of _____________ opportunities and threats.
Qualitative forecasting
_________________ is a forecasting method that relies on expert opinion
Change oriented
anticipating problems and opportunities so they can be best dealt with
Complacency trap
being lulled into inaction by current successes or failures
Advantage oriented
ensuring that all resources are used to best advantage
Policy
A ________ communicates broad guidelines for making decisions
Procedure (rules)
A __________ defines specific actions to be taken in specific situations
Financial budgets
A ___________ is a budget that projects cash flows and expenses
Operating budgets
A ____________ is a budget that anticipates sales and revenue
Zero-based budget
A _____________ allocates resources as if each budget was brand new
Strategy
A comprehensive plan guiding resource allocation to achieve long-term organization goals
Core Competency
A special strength that gives an organization a competitive advantage (ie. Harpos=igniting nostalgic memories)(Wendys=speed and order fulfillment)(Mizzou=teachers, upper level education NOT parking/transportation)
Crowdsourcing
A special type of social media strategy that strategically uses the internet to engage customers and potential customers in providing opinions and suggestions on products and their design. (i.e. Threadless allows customers to submit t-shirt designs which are voted on, with top ones selected for production)
Non-monetary
____________ budgets allocate resources
Production plans
_____________ are plans that deal with methods of technologies needed by people in their work
Operational plans
_____________ identify activities to implement strategic plans
Financial plans
______________ are plans that deal with money required to support various operations
Strategic plans......Vision
______________ identify long-term directions for the organization. __________ is the purpose for the organization and also expresses what it should do in the future.
Functional plans
___________ identify roles of functional areas
activities...... projects
Budgets commit resources to ____________, programs, or ____________
Corporate strategy
Directions and guidelines for use of resources. Asks "In what industries and markets should we compete?"
Vertical Integration strategy
Expansion by acquiring existing suppliers (i.e. automobile industry buying parts suppliers) or distributors (i.e. Pepsi purchasing some of their major bottlers)
Diversification strategy
Expansion occurs by entering new business areas (i.e. pepsico began as pepsi; now much more; related~same industry, unrelated~different industries)
Growth Strategy
Expansion through current operations
Concentration strategy
Expansion within an existing business area that the firm has experience and expertise in (i.e. diet coke as a growth market)
Functional Strategy
Guides activities within one specific area of operations. Asks "How can we best utilize resources within the function to support implementation of the business strategy?"
Business Strategy
Identifies how a strategic business unit or division will compete in its product or service domain. Asks "How are we going to compete for customers within this industry and in this market?"
Action oriented
Keeping a results-driven sense of direction
three or more years
Long-range plans usually cover __________. Few people are comfortable planning this far ahead
Restructuring strategy
Reduces the scale or mix of operations. Less extreme and more common form of retrenchment
year or less
Short-range plans usually cover a _______________
Implement and evaluate the plan
Steps in Management Process. Fifth step that involves taking action; measure progress and revise plan if needed
Define objectives
Steps in Management Process. First step that establishes where you want to go, when you get there, and how far off you are along the way. Involves stretch goals
Analyze alternatives and make a plan
Steps in Management Process. Fourth step that involves choosing the alternatives most likely to accomplish objectives
Determine Current status compared to objectives
Steps in Management Process. Second step that looks at where you presently stand in reaching objectives. Identify strengths and weaknesses
Develop premises regarding future conditions
Steps in Management Process. Third step that generates alternative scenarios for what may happen. Identify for each scenario things that may help or hinder
e-business strategy
Strategically using the internet to gain competitive advantage.
Strategy formulation
The process of creating strategies (review current situation, analyze organizational and external environment, develop new strategies)
Strategic Management
The process of formulating and implementing strategies
Strategy Implementation
The process of putting strategies into action
Quantitative forecasting
___________ is a forecasting method that relies on mathematical models and statistical analysis
Marketing plans
____________ are plans that deal with the requirements of selling and distributing goods or services
Downsizing
Type of Restructuring Strategy. Decreasing the size of operations. Often makes the news. Research shows that this is most successful when cutbacks are done selectively and focused on key performance objectives.
Divesture
Type of Restructuring Strategy. Involves the selling off of parts of the organization to refocus attention on core business areas (cut costs, improve operating efficiency)
Chapter 11 Bankruptcy
Type of Restructuring Strategy. Protects an insolvent firm from creditors during a period of reorganization to restore profitability. Goal is to emerge as a strong and profitable business (like GM and Chrysler)
B2C Strategy (Business to Customer)
Type of e-business strategy that uses IT and web portals to vertically link organizations with customers
B2B Strategy (Business to Business)
Type of e-business strategy that uses IT and web portals to vertically link organizations with members of their supply chains.
Social Media Strategy
Type of e-business strategy that uses social media to better engage with an organizations customers. clients, and audiences in general
high barrier to entry..... weak supplier and buyer power
Under Porter's Five Forces an attractive industry involves low rivalry, _________________, few or no substitue products, _______________
intense rivalry......substitute products
Under Porter's Five Forces an unattractive industry involves ____________, easy entry, ___________, powerful suppliers and customers.
internal strengths.....external threats
When conducting a SWOT analysis we should match ________________ to external opportunities and avoid internal weaknesses possible exposure to _______________
Forecasting..... substitutes
_________ attempts to predict the future. Relies on human judgement, which could be wrong.They are plaining aides, not planning __________
Facilities plans
___________ are plans that deal with facilities development and work layouts
Human resource plans
___________ are plans that deal with the recruitment, selection, and placement of people into various jobs