MBA 502 Quiz 4
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What is strategy?
pattern of decisions managers make to realize defined goals
What is a mission statement?
a broad declaration of purpose of an organization
What makes a good mission statement?
- -it will identify market/ industry that company competes in
- -state what makes the company different from competition
- -it's brief and inspiring
What is a SWOT analysis?
What makes up the Five Forces Model to identify threats?
- 1.Level of Rivalry-creates competition with price
- 2.Potential for Entry-ease of entering the market
- 3.Power of Suppliers-having multiple sources for suppliers is better for business
- 4.Power of Buyers- fewer buyers the more the company has to compete to provide for buyer
- 5.Substitutes- the extent to which your product is similar to others
Strategy Implementation: What are the time horizon for plans?
- Long-term- 5 or more years
- Intermediate term- 1 to 5 years
- Short term- up to 1 year
- Rolling Plans- constantly being updated
What are the 3 types of plans?
- Standing plans- placed indefinitely
- Single use plans- non program use, one time use developed to address unique
- Scenerio plan- generate hypothetical situations; imagine what could happen
What are corporate level strategies?
what industry or market will business compete in
What is vertical integration?
business buys/ acquires all levels of supply chain
What is diversification?
company expands in multiple industries
What is related diversification?
company expands in a market that is similar to the existing company ex: Yum Foods- Pizza Hut, Taco Bell, KFC
What is unrelated diversification?
risk is spread out by investing/ acquiring businesses in totally different industries ex: GE
What are the 3 different levels of corporate level strategies?
- business concentration
- international strategy
What are business related strategies?
How will I beat my competition
What are the two different business level strategies?
- low cost- emphasis low cost market
- differentiation- target specific customer base/ market
What are functional level strategies?
improving the ability of an organization's departments to create value for the firm
What are the 4 criteria to add value to an organization in functional level strategies?
- Efficiency-speed or delivery of product or service
- Quality- performance or reliability
- Responsiveness to customer needs- modify based upon feedback
What factors affect organizational structure?
- the environment
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