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  1. Define the term "strategic management".
    Set of managerial decisions and actions that determines the long-run performance of a firm.
  2. List four phases of strategic management.
    • 1. Basic financial planning
    • 2. Forecast-based planning
    • 3. Externally-oriented planning
    • 4. Strategic Management
  3. List four basic elements of strategic management.
    • 1. Environmental Scanning
    • 2. Strategy Formulation
    • 3. Strategy Implementation
    • 4. Evaluation and Control
  4. Define the term "strategy".
    A strategy is a consciously intended course of action, a guideline how to pursue an organizations mission and achieve objectives.
  5. 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
  6. 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.
  7. List three directional strategies.
    • 1. Growth
    • 2. Stability
    • 3. Retrench
  8. 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
  9. 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
  10. 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
  11. 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
  12. 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
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