Chapter 5
Why is a company situation analysis part of the strategic planning process?
A company situation analysis is used at the business level to determine the strategic issues and problems that need to be addressed through the next three steps of the strategic planning process.
What is the difference between a merger and an acquisition?
A merger occurs when two companies form one corporation, whereas an acquisition occurs when one business buys all or part of another business.
Is there a difference between a plan and a strategy?
A strategy is a plan for pursuing a mission and achieving objectives.
What criteria should an objective meet?
An effective objective conforms to four "must" criteria: It expresses a single result that is specific and measurable, and it sets a date for achieving that result. In addition to the four "must" criteria, objectives may conform to three "want" criteria: difficult but achievable (realistic), participatively set, and acceptance and commitment.
Which planning levels and their strategies are part of strategic planning?
Corporate- and business-level planning and their strategies are part of strategic planning.
What is the relationship between the mission statement and developing strategies?
Developing the mission is the first step in the strategic planning process. The mission is the foundation of the other four steps in the strategic planning process.
What are the five planning dimensions?
The five planning dimensions are: (1) management level, (2) type of plan, (3) scope, (4) time, and (5) repetitiveness.
What are the grand strategies?
The grand strategies are growth, stability, and turnaround and retrenchment.
What are the steps in the strategic planning process?
The steps in the strategic planning process are (1) developing the mission, (2) analyzing the environment, (3) setting objectives, (4) developing strategies, and (5) implementing and controlling strategies.
What are the two types of plans?
The two types of plans are strategic plans and operational plans.
What are the common functional strategy areas?
The common functional strategy areas are marketing, operations, human resources, and finance.
What are the competitive strategies?
The competitive strategies are differentiation, cost leadership, and focus.
What is the relationship between grand strategies and adaptive strategies?
The adaptive strategies (prospecting, defending, and analyzing) correspond to the corporate grand strategies of growth, stability, and combination, respectively.
What are the adaptive strategies?
The adaptive strategies are prospecting, defending, and analyzing.
What is the difference between standing plans and single-use plans?
Standing plans are policies, procedures, and rules developed for handling repetitive situations. Single-use plans are programs and budgets developed for handling nonrepetitive situations. Single-use plans, unlike standing plans, are developed for a specific purpose and probably will not be used again in the same form.
What is the "writing effective objectives" model?
The "writing effective objectives" model includes (1) the word to followed by (2) an action verb; (3) a statement of the single, specific, and measurable result to be achieved; and (4) a target date.
