front 1 What are the two perspectives of Leadership? | back 1 Romantic view and External control perspective |
front 2 Romantic view | back 2 Leader is the key force in organization's success |
front 3 Leaders can make a difference by being aware of _________ and _________ faced in the _________ environment. | back 3 Opportunities; threats; external |
front 4 External control perspective | back 4 Focus is on external factors that affect an organization's success |
front 5 Leaders can make a difference by having a thorough understanding of the firm's ______________ and __________. | back 5 resources; capabilities |
front 6 Strategic Management | back 6 The analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. |
front 7 Strategic management must become both a ________ and a ___ ___ _________ throughout the organization. | back 7 process; way of thinking |
front 8 Strategic management is used to compete in order to create... | back 8 competitive advantages in the market place-unique, valuable and difficult to copy. |
front 9 What are the three processes of strategic management? | back 9 Analysis, strategic decisions, and actions |
front 10 analysis | back 10 (1)strategic goals (vision, mission, strategic objectives) (2) Internal and external environment of the firm |
front 11 Strategic decisions | back 11 What industries should we compete in? How should we compete in those industries? |
front 12 Actions | back 12 Implementation; allocate necessary resources; design the organization to bring intended strategies to reality |
front 13 operational effectiveness | back 13 means performing similar activities better than rivals |
front 14 stakeholders | back 14 individuals, groups and organizations who have a stake in the success of the organization, including owners, employees, customers, suppliers, and the community at large. |
front 15 Sustainable competitive advantage | back 15 is possible only by performing different activities from rivals or performing similar activities in different ways. |
front 16 What is the essence of strategic management? | back 16 Study of why some firms outperform others-not operational effectiveness |
front 17 What are the 4 key attributes of strategic management? | back 17 (1) Directs the organization toward overall goals and objectives; (2) Includes multiple stakeholders in decision making; (3) Needs to incorporate short-term and long-term perspectives; (4) Recognizes trade-offs between efficiency and effectiveness. |
front 18 Corporate Governance | back 18 The relationship among various participants in determining the direction and performance of corporations. Ex. Shareholders, Mgmt (CEO) Board of Directors. |
front 19 What are the three mechanisms to ensure effective corporate governance (internal)? | back 19 (1) An effective and engaged Board of Directors; (2) Shared activism; (3) Proper managerial rewards and incentives |
front 20 What are the external controls of corporate governance? | back 20 Banks, analysts, financial press, takeovers |
front 21 Stakeholder Management | back 21 Firm's strategy for recognizing and responding to the interests of all its salient stakeholders. |
front 22 What are the two view of stakeholder management? | back 22 Zero-sum view and stakeholder symbiosis view |
front 23 Zero-sum view | back 23 Stakeholders compete for attention and resources of the organization; gain of one is a loss to the other |
front 24 Stakeholder symbiosis view | back 24 Stakeholders are dependent upon each other for their success and well-being; mutual benefits |
front 25 Outback Steakhouse has developed a sophisticated quantitative model and found that there were positive relationships between employee satisfaction, customer satisfaction, and financial results. This is an example of ________. | back 25 Stakeholder symbiosis |
front 26 What is the responsibility of managers in a strategic management perspective? | back 26 Managers must make a major effort to effect transformational change, which involves extensive communication, incentives, training and development |
front 27 Hierarchy of goals | back 27 Goals ranging from those that are less specific yet able to evoke powerful and compelling mental images to those that are more specific and measurable. |
front 28 What is a representation of a destination that is driven by and evokes passion. | back 28 Organizational goals. |
front 29 Disneyland's vision to be the happiest place on earth is an example of what strategic direction? | back 29 organization vision |
front 30 Environmental Awareness | back 30 Managers must recognize opportunities and threats in their firm's external environment |
front 31 What are three important processes used used to develop forecasts? | back 31 Environmental Scanning, External Monitoring, and Competitive Intelligence |
front 32 Environmental Scanning | back 32 Surveillance of a firm's external environment |
front 33 Environmental scanning consists of... | back 33 predicting environmental changes to come, detect changes already under way, and proactive mode |
front 34 Alerting the firm to critical trends before changes have been developed to a discernible pattern and before competitors recognize them relates to what environmental awareness process? | back 34 Environmental Scanning |
front 35 External Monitoring | back 35 Track evolution of environmental trends, sequence of events or streams of activities. |
front 36 Competitive Intelligence | back 36 Helps firms define and understand a firm's industry |
front 37 Which one of the three processes helps identify rival's strengths and weaknesses? | back 37 Competitive Intelligence |
front 38 True or False. Intelligence gathering is an example of Environmental Scanning? | back 38 False. it is an example of competitive intelligence |
front 39 True or False. Interpretation of intelligence data is an example of competitive intelligence. | back 39 True |
front 40 What cautions are there for competitive intelligence? | back 40 Caution to avoid unethical and illegal behavior and don't spend all time on traditional competitors that you ignore new competitors. |
front 41 Porter's Five Forces Model | back 41 Potential entrants, Buyers, Industry Competitors, Substitutes, and Suppliers |
front 42 Why should managers need to know the 5 forces model? | back 42 Helps determine whether to remain in an industry or exit, provides rationale for increasing or decreasing resource commitment, helps assess how to improve firm's competitive position relative to each of the 5 forces |
front 43 The General Environment | back 43 Factors external to an industry, usually beyond a firm's control. Demographic, sociocultural, legal/political, technological, economic, global. |
front 44 Examples of Demographic segment | back 44 Aging population, rising or declining affluence, changes in ethnic composition, geographic distribution of population, greater disparities in income levels. |
front 45 Examples of sociocultural segment | back 45 more women in the workforce,dual-income families, increase in temporary workers, greater concern for healthy diets and physical fitness, greater interest in the environment, postponement of having children. |
front 46 Examples of political/legal segment | back 46 Health care reform, Americans with Disabilities Act, Increased regulation of banking, Deregulation of utility and other industries, increases in federally mandated minimum wages, taxation at local, state, federal levels, legislation on corporate governanc |
front 47 Examples of Technological segment | back 47 genetic engineering, emergence of internet technology, computer-aided design/computer-aided mftg, wireless communication, nanotechnology |
front 48 Examples of Economic segment | back 48 Interest rates, unemployment, consumer price index, trends in GNP, Changes in stock market valuations. |
front 49 Examples of Global Segment | back 49 Increasing global trade, currency exchange rates, emergence of the Indian and Chinese economics, trade agreements, and creation of WTO |
front 50 Five forces analysis is essentially a __________ analysis, meaning it gives a point in time, but doesn't show changes over time | back 50 static |
front 51 Economies of scale | back 51 Spreading costs of production over number of units-costs decline as volume increases |
front 52 What are the sources of entry barriers? | back 52 Economies of scale, product differentiation, and capital requirements, switching costs, access to distribution channels, and cost disadvantages independent of scale |
front 53 Capital requirements | back 53 need to invest large financial resources is barrier. |
front 54 How do buyers threaten an industry? | back 54 (1) Forcing down prices, (2) Bargaining for higher quality or more services, (3) Playing competitors against each other |
front 55 In what ways is a buyer group powerful? | back 55 (1) It is concentrated or purchases large volumes relative to seller sales, (2) The products it purchases from the industry are standard or undifferentiated, (3) The buyer faces few switching costs, (4) It earns low profits |
front 56 The bargaining power of suppliers | back 56 Suppliers can exert power by threatening to raise prices or reduce the quality of purchased goods and services. |
front 57 When is a supplier group powerful? | back 57 (1) The supplier group is dominated by a few companies and is more concentrated than the industry it sells to, (2) The supplier group is not obligated to contend with substitute products for sale to the industry, (3) The industry is not an important custo |
front 58 How is a supplier group powerful? | back 58 (1) The supplier's product is an important input to the buyer's business, (2) The suppler group's products are differentiated or it has built up switching costs for the buyer, (3) The supplier group poses a credible threat of forward integration. |
front 59 What are 4 limitations of SWOT analysis? | back 59 Strengths may not lead to an advantage, SWOT's focus on the external environment is too narrow, SWOT gives a one-shot view of a moving target, and SWOT overemphasizes a single dimension of strategy. |
front 60 what is the amount that buyers are willing to pay for what a firm provides them and is measured by total revenue? | back 60 value |
front 61 what is the key concept used in analyzing a firm's competitive position? | back 61 creating value for buyers that exceeds the cost of production |
front 62 What is a strategic analysis of an organization that uses value creating activities? | back 62 value-chain analysis |
front 63 The value-chain analysis has two different categories of activities...what are they? | back 63 Primary and secondary activities |
front 64 What contributes to the physical creation of the product or service, its sale and transfer to the buyer, and its service after the sale? | back 64 The primary activities |
front 65 What do the primary activities consist of? | back 65 Inbound logistics, operations, outbound logistics, marketing and sales, and service |
front 66 What are activities of the value chain that either add value by themselves or add value through important relationships with both primary activities and other support activities? | back 66 secondary activities |
front 67 What do the secondary activities consist of? | back 67 procurement, technology development, humane resource management, and general administration |
front 68 Which primary activity is associated with collecting, storing, and distributing the product or service to buyers? | back 68 Outbound Logistics |
front 69 Machining, packaging, assembly, testing, printing and facility operations are all associate with which primary activity? | back 69 Operations |
front 70 True or False. Inbound Logistics is associated with purchases of products and services by end users and the inducements used to get them to make purchases? | back 70 False. Inbound Logistics is associated with receiving, storing, and distributing inputs to the product.` |
front 71 What does procurement refer to? | back 71 It is the function of purchasing inputs used in the firm's value chain, not to the purchased inputs themselves. |
front 72 Tangible resources are... | back 72 organizational assets that are relatively easy to identify, including physical assets, financial resources, organizational resources, and technological resources. |
front 73 What are the three types of intangible resources? | back 73 Human, Innovation and creativity, and Reputation |
front 74 Organizational capabilities combines _______ and __________ resources, using __________ processes to attain desired end. | back 74 tangible; intangible; and organizational |
front 75 The balanced scorecard | back 75 A method of evaluating a firm's performance using performance measures from the customer's, internal, innovation, and learning and financial perspectives. |
front 76 What are 4 key perspectives associated with the balance scorecard? | back 76 (1) How do customers see us? (cust perspective); (2) What must we excel at? (internal biz perspective); (3)Can we continue to improve and create value?; (4) How do we look to shareholders? (financial perspective) |
front 77 What is the customer perspective in relation to the balance scorecard? | back 77 How a company is performing from customer's perspective; Time, Quality, Performance and service, and Cost |
front 78 What is the internal business perspective in relation to the balance scorecard? | back 78 What must the firm do internally to meet customer's expectations. Processes, decisions, actions, coordination, and resources and capabilities |
front 79 Explicit Knowledge | back 79 Documented and widely distributed |
front 80 Tacit Knowledge | back 80 in the minds of the employees |
front 81 Social Capital | back 81 Relationships among individuals |
front 82 Porter's three generic strategy | back 82 Cost leadership, Differentiation, Focus |
front 83 Overall cost leadership | back 83 Low-cost position, managing relationships through the value chain |
front 84 Differentiation | back 84 Unique products and services, non-price attributes |
front 85 Focus | back 85 narrow product lines, targeted demographic |
front 86 experience cure | back 86 Productions is more efficient and costs less over time |
front 87 Competitive parity | back 87 on par with competitors but with low costs |
front 88 Pitfalls of Cost leadership | back 88 lack of parity, focus too much on one step in the value chain |
front 89 Pitfalls of Differentiation | back 89 No value in uniqueness, too high of price, differentiation can be imitated |
front 90 Pitfalls of focus | back 90 Focus too much on buyer needs |
front 91 Diversification | back 91 Create value for shareholders through: Mergers, Joint Ventures, internal development |