Finalstudyguide.txt

Set of managerial decisions and actions that determines the long-run performance of a firm.

• 1. Basic financial planning
• 2. Forecast-based planning
• 3. Externally-oriented planning
• 4. Strategic Management

• 1. Environmental Scanning
• 2. Strategy Formulation
• 3. Strategy Implementation
• 4. Evaluation and Control

A strategy is a consciously intended course of action, a guideline how to pursue an organizations mission and achieve objectives.

• 1. Threat of Substitute Products or Services
• 2. Bargaining Power of Buyers
• 3. Bargaining Power of Suppliers
• 4. Rivalry among competitors
• 5. Threat of New Entrants

A benefit that exists when a firm has a product or service that is seen by its target market as better than those of competitors.

• 1. Growth
• 2. Stability
• 3. Retrench

• 1. (Domestic company) domestic company exports through local dealers in foreign country
• 2. (Domestic company with export division) Establish sales company in other countries to eliminate middleman
• 3. (Primarily domestic company with international division) Open manufacturing facilities in other countries
• 4. (Multinational corporation with multidomestic emphasis) Establishes local operating divisions, such as Ford of Britain
• 5. (MNC with global emphasis) Worldwide strategies

• 1. Question marks - (problem child or wildcats)
• 2. Stars- Market leaders that are at the peak of their product life cycle
• 3. Cash cows- High market share/low growth (in the declining stage)
• 4. Dogs- low market share and low potential

• 1. Defenders - limited product line focus on improving efficiency
• 2. Prospectors - Broad product line focus on innovation
• 3. Analyzers - operate in two different markets
• 4. Reactors - lack consistent strategy - structure - culture

• 1. Birth - Concentration in a niche/Entrepreneur dominated
• 2. Growth - Horizontal and vertical growth/Functional management emphasized
• 3. Maturity - Concentric and conglomerate diversification/Decentralization into profit or investment centers.
• 4. Decline - Profit strategy followed by retrenchment/Structural surgery
• 5. Death - Liquidation or bankruptcy/Dismemberment of structure

• 1. Mission is the organizations reason for existence
• 2. Vision is what the organization would like to become
• 3. Strategic plans are the courses of action used to obtain objectives