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Define the term "strategic management".
Set of managerial decisions and actions that determines the long-run performance of a firm.
List four phases of strategic management.
1. Basic financial planning
2. Forecast-based planning
3. Externally-oriented planning
4. Strategic Management
List four basic elements of strategic management.
1. Environmental Scanning
2. Strategy Formulation
3. Strategy Implementation
4. Evaluation and Control
Define the term "strategy".
A strategy is a consciously intended course of action, a guideline how to pursue an organizations mission and achieve objectives.
Identify the five forces that shape competition as described by Porter.
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
Explain what is meant by the term "competitive advantage".
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.
List three directional strategies.
List the five stages of international development.
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
Describe the Boston Consulting Group (BCG) model of product and service.
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
List and explain Miles and Snow's typology of alternative strategies.
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
List and describe the stages in an organizational life cycle.
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
Explain the relation between Mission statements, Vision Statements, and Strategic Plans.
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