STRAMA MIDTERM

Environmental Stability (ES)

Technological changes, rate of inflation, demand variability, price range of competing products, barriers to entry into the market, competitive pressure, ease of exit from the market, price elasticity of demand, risk invovled in business.

SECTION 5. The State as the Primary Duty-Bearer.

The State, as the primary duty-bearer, shall: (a) Refrain from discriminating against women and violating their rights;(b) Protect women against discrimination and from violation of their rights by private corporations, entities, and individuals; and(c) Promote and fulfill the rights of women in all spheres, including their rights to substantive equality and non-discrimination.

Division by Product

The organizations who are often using this kind of strategy are the business that sells a lengthy product line (a lot of different kinds of products). Organizations have a set of different managers and assistants per product that they are selling.

Management Information Systems (MIS)

This is the study of "people, technology, organizations, and relationships among them"

Comprehensive Strategy-Formulation Framework

a good way to formulate a strategy is by following the diagram of

BCG Matrix (Boston Consulting Group)

a portfolio planning model that is based on the observation that a company's business units or product line and can be classified into four categories: A. Cash Cows; B. Stars; C. Question Marks; D.Dogs.

SPACE Matrix

a strategic management tool that focuses on strategy formulation especially as related to the competitive position of an organization.

What is the STEP 3 of BCG Matrix

calculate the relative market share

Discrimination

can happen in an individual from their recruitment, while at work, and for promotion.

Strength and Opportunities (SO)

leverage the internal assets of a company to maximize external opportunities.

Competitive Advantage (CA)

market share, product quality, product life cycle, customer loyalty, capacity utilization, technological know-how, control over suppliers, and distributors.

Sales Department

means they are the ones responsible for bringing clients and eventually sales to the organizations. They are initially assigned to do a face-to-face conversation with their customers. They are also expected to build a deeper relationship between the organization and the client.

Production/Operation Concerns When Implementing Strategies

Production processes typically constitute more than 70 percent of a firm's total assets". This is surely a fact especially for organizations that are in the manufacturing line of business

Republic Act 10173 - Data Privacy Act of 2012

SEC. 12. Criteria for Lawful Processing of Personal Information. - The processing of personal information shall be permitted only if not otherwise prohibited by law, and when at least one of the following conditions exists:

Business Ethics Issues

1. Misleading Advertising or Labeling 2. Leakage of Sensitive Information 3. Discrimination

Feasibility

A strategy must neither overtax available resources nor create unsolvable sub-problems

Advantage

A strategy must provide for the creation and/or maintenance of competitive advantage in a selected area of activity.

Consistency

A strategy should not present inconsistent goals and policies.

Regulation of Sales Acts and Practices

ARTICLE 50. Prohibition Against Deceptive Sales Acts or Practices. — A deceptive act or practice by a seller or supplier in connection with a consumer transaction violates this Act whether it occurs before, during or after the transaction. An act or practice shall be deemed deceptive whenever the producer, manufacturer, supplier or seller, through concealment, false representation or fraudulent manipulation, induces a consumer to enter into a sales or lease transaction of any consumer product or service.

ESOP (employee stock ownership plan)

Another strategy that organizations do is where the management gives/sells the stock of the company to its employees.

Strategic Business Unit (SBU)

As an organization continuous to diversify and expand. It will be hard for the CEO to handle each department very closely.

Matching Structure with Strategies

Changes in strategy lead to changes in an organizational structure. The structure should be designed to facilitate the strategic pursuit of a firm and, therefore, follow strategy

What is the Step 1 in SPACE Matrix?

Choose a set of variables to be used to gauge the competitive advantage (CA), industry strength (IS), environmental stability (ES), and financial strength (FS). In choosing a variable, you can use the following factors as a basis:

What is the STEP 1 of BCG Matrix?

Choose the market

Strengths

Define what a company excels at and separates it from the competition: a strong identity, a loyal customer base a strong balance sheet, advanced technologies, and so on. A hedge fund, for example, may have developed a proprietary trading strategy that returns market-beating results. It then needs to determine whether to make use of those findings to draw new investors.

Misleading Advertising or Labeling

Every business because of wanting to have a competitive advantage emphasize certain value of their business within their advertising and labeling.

Code of Business Ethics

Given that every form of business face different kinds of business ethics issues, one thing a strategist can do to face this correctly is to develop a clear code of business ethics.

Stage 1: The Input Stage

IFE, EFE, CPM

Leakage of Sensitive Information

In the Philippines it is required for non-stock and stock corporations to submit an updated General Information Sheet and audited Financial Statement yearly at the office of Securities and Exchange Commission or SEC. On this note, some information about the organization becomes public. Wherein, any person can access the information input therein anytime.

Strategy Implementation

It means change. In all but the smallest organizations, the transition from strategy formulation to strategy implementation requires a shift in responsibility from strategists to divisional and functional managers

Division by Geographic

Organizations that serve service to different locations tends to have division by geographic or division by location.

Stage 2: The Matching Stage

What we match in this stage is the information that we got from stage 1 of the framework which includes internal resources and skills as well as opportunities and risk created by external factors.

Weakness and Opportunities (WO)

aim to strengthen the internal vulnerabilities by leveraging external opportunities.

Opportunities

apply to advantageous external conditions that may offer a competitive advantage to an enterprise. For example, if a nation cuts tariffs, an automaker will export his cars to a new market, increasing revenue and market share.

Marketing Department

are expected to do a market research, studying customer behaviour, studying competitor's products, formulating marketing strategies to can help to elevate the brand of the organizations etc.

IE Matrix

based on an analysis of internal and external business factors that are combined into one suggestive model, which is a continuation of IE, EFE, and IFE matrix model.

Psychographic Segmentation

buyers are divided into groups on the basis of psychological/personality traits, lifestyle, or values.

Finance/Accounting

considered to be central to the implementation of the strategy, according to David (2011), those are (1) acquiring needed capital; (2) developing projected financial statements; (3) preparing financial budgets; (4) evaluating the worth of a business. managers must develop effective strategy-implementation approaches for that company at low cost and minimum risk.

aggressive

consists of the following strategies: backward, forward, horizontal integration, market penetration, market development, product development, and diversification (related or unrelated)

Competitive

consists of the following strategies: backward, forward, horizontal, integration, market penetration, market development, and product development

Conservative

consists of the following strategies: market penetration, market development, product development, and related diversification

Defensive

consists of the following strategies: retrenchment, divestiture, and liquidation

Weakness and Threat (WT)

defensive tactics intended to reduce internal vulnerabilities and deter external threats.

What is the STEP 2 of BCG Matrix

define the market

strategy

defined by the Cambridge dictionary is how business, government or other organization carefully plans its actions over a period of time to improve its position and achieve what it wants".

Strategy Implementation

directly affects all employees and managers or employees who are not committed to the business may sabotage the strategy implementation

Functional

from the word itself, the department of organizations are divided according to their function in the organization.

Industrial Strength (IS)

growth potential, profit potential, financial stability, extend leveraged, resource utilization, ease of entry into the market, productivity, capacity utilization

Weakness

hinder a company from operating at their highest level. These are areas in which the company needs to change in order to stay competitive: a poor brand, higher than average turnover, high debt rates, insufficient supply chain, or lack of resources.

Strategy Evaluation

is important for the organization's well-being; on-time evaluations can alert or warn the management to present or potential problems before it occurs.

Marketing

is the lifeblood of a business. Not only does build brand awareness, but it can also increase sales, grow businesses, and engage customers.

Division by Process

most likely organization who does this are the businesses that have a lot of processing to do before they could bring out their final product.

Division by Customers

organizations that have a different set of customers (different backgrounds) are the one who usually does this kind of division among organizations.

QSP Matrix

provides an analytical method for comparing feasible alternative actions. This is considered as a high-level strategic management approach for evaluating possible strategies.

Threat

refers to factors that may harm a business. A drought, for example, is a threat to a wheat production business because it can kill or reduce crop yields. Other important threats include rising material prices, increased competition, tight supply of labor, and so forth.

Policies/ Policy

refers to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals

Consonance

refers to the need for strategists to examine sets of trends, as well as individual trends, in evaluating strategies.

Product Positioning

refers to the position a brand occupies in the consumers' minds, and how it is differentiated from the competitors' goods.

Financial Strength (FS)

return on investment, leverage, liquidity, working capital, cash flow, inventory turnover, earning per share, price earning ratio.

Annual Objectives

serve as guidelines for action, directing and channelling efforts and activities of organization members.

SWOT Matrix

stands for Strengths, Weaknesses, Opportunities, and Threats. It is an important matching tool that helps managers develop four types of strategies.

Matrix

the most complex of all designs because it depends upon both vertical and horizontal flows of authority and communication

Dual Bonus System

the percentage of a manager's annual bonus attributable to short-term versus long-term results should vary by hierarchical level in the organization.

Market Segmentation

the subdividing of a market into distinct subsets of customers according to needs and buying habits

Demographic Segmentation

this is where you divide the market according to gender, age, race, marital status, income, education, family size, family life cycle employment, generation, etc.

geographic segmentation

this market is being divided according to location, country, region, state, zip code, city, village, building.

Behavioral Segmentation

this segmentation is about dividing the market according to their behaviour as a customer and their response to product.

Comparing Expected Results with Actual Results

this stage compromises of comparing the forecast to actual results, evaluating departmental performance, looking into a more detailed manner for discrepancies from the plans, and checking into the progress the organization does moving into their objective.

Strength and Threat (ST)

use the strengths of a firm to avoid or diminish the impact of external threats.