Terms in this set (64)
I CAN recreate the grid of Porter's Generic Strategies (including Integrated Cost Leadership/Differentiation), recreate Ansoff's Product/Mission Matrix, and discuss the SWOT Matrix
Porters Generic Strategies
Ansoff's Product/Mission Matrix
I CAN define the term "strategy".
Plan or method for achieving a particular goal, usually over a long period of time; a unifying ideal or theme that informs and directs the decisions of an organization; how we get from here to there. - How we win!
I CAN recall the 8 basic elements of strategy formulation in this order:
Mission, Vision, Objectives, Strategic Analysis, Strategic Alternatives, Strategic Choice, Implementation Plan, Strategic Controls.
I CAN name at least three qualities of an effective mission statement.
Unique and representative of the company's identity, easy to memorize, actionable and even measurable, applicable to every aspect of the company's daily functions.
I CAN briefly explain how culture can become self-perpetuating through the passionate buy-in of the team
Clan control; culture has become so strong; people take ownership.
I CAN list the terms that make up the acronym "SMARTA".
Specific, Measurable, Achievable,relevant, timely, aligned
I CAN recall the most important task a leader has and tell what a leader's most important job or role is.
Most important task a leader has is communication, communicating. Role: inspire the people and unite them around the purpose (of the company)
I CAN recall the five forces of competition listed in Michael Porter's model
Cost leadership, differentiation, cost focus, differentiation focus, and integrated cost leadership.
I CAN discuss KSF's! I know what they are. I know what questions a firm asks to determine what they are. And I remember what some common KSF's are.
Key success factors! A firm must be good at in order to thrive. Question: "What must we be good at to survive in the industry". KSF's are: Location, quality, service, price, innovation, speed, safety.
I CAN recall the 4 Criteria of the RBV (Resource-Based View of internal analysis).
Valuable, rare, imitable, non-substitutable.
I CAN recall the 5 common types of resources a firm might possess.
Finacial, technological-organizational, physical, reputational, human capital.
I CAN define "resource" and "capability".
Resource: everything a company possesses, tangible and intangible.
Capability: the output of a combination
I CAN name a core competence of several of the major firms we discussed in class.
United Supermarkets: service, culture, training.
Walmart: cost control, logistics, transportation.
Apple: quality, innovation, service, marketing.
I CAN recall and understand the meaning of terms like "retrenchment" and "harvesting".
retrenchment: shrink to grow, Harvesting: see the end coming and you ride it out; no life span that is going on.
I CAN recall the two basic ways a firm can approach gaining competitive advantage by offering customers superior value.
Offering a good product at a superior price (simular product, lower cost), offer a superior product at a superior price.
I CAN explain the purpose of implementation plans and strategic controls.
Plan to set forth initiatives (proceeds from strategy) that are designed to achieve company objectives.
I CAN name three characteristics of differentiation strategy.
Emphasis on branding and brand marketing, design, service, and quality.
I CAN explain two ways that a firm with a cost advantage over rivals can use that advantage to its benefit.
Take cost advantage -- superior price
I CAN identify the appropriate strategy for any one of the four quadrants in the BCG Matrix.
I CAN also identify the correct growth/share combination for each quadrant in the BCG Matrix.
I CAN remember and recognize the different reasons Mintzberg thought formal strategic planning was problematic.
Time is the biggest hurdle - dealing with the complexity of issues, a mist change and the rapid place of change. Fallacy-prediction, fallacy-detachment.
Fallacy- formalization, more detailed your plane is the less availability for flexibility, spontaneity, institutional and leaning.
I CAN remember that vision, mission, values, and culture address the questions, "Who do we want to be?" and "What is our purpose?"
"Who do we want to be?" and "What is our purpose?"
I CAN remember that there is always a tension between financial objectives and strategic objectives within a firm.
I CAN remember what the important concept of "identity" means.
Come from leaders!
I CAN identify the main components of external and internal analysis.
For internal analysis: examine vision, mission, values, and culture, identify ways competitors are being successful.
I CAN identify what causes buyer power to be high.
There are few buyers compared to sellers; differentiation is low; price sensitivity; threat of backward integration
I CAN identify what conditions make rivalry among firms stronger.
Number of firms is high; similarly is great; market growth is slow; response to new entrants; industry and market conditions affect competitors behaviors.
I CAN recall what the "value chain" concept is all about (activities, value, and cost).
Value chain is the sequence of activities used to add value to the offering; consists of the structure of activities that a firm used to add value to the offering. *Everything adds a cost to the ultimate price (value). Value=client benefits.
I CAN identify an example of forward and backward integration.
United Supermarkets opening a warehouse: backward integration. Little Debby selling to suppliers then deciding to open up a Little Debby retail store.
I CAN remember what the resource-based view (RBV) examines.
It examines what a firm has. In other words it looks at the firm as sum of its resources.
I CAN remember the difference between the basic question asked by corporate strategy and business strategy.
I CAN recognize the basic attributes of a good, sound strategy. (You really can.)
Having the right goal!
I CAN discuss the law of comparative advantage - whose idea it was, and what point he was trying to make regarding international trade with less developed nations.
Is an economic law referring to the ability of any given economic actor to produce goods and services at a lower opportunity cost than other economic actors. David Ricardo's ideal. Under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.
I CAN recall that Marx's vision of a communist society has never been able to be truly tested, because no significant society has ever been able to dissolve the central state and its powerful hold over the system.
I CAN remember the emphasis Smith put on the power and role of self-interest as the single greatest motivator humanity has.
A society built on individual pursuit of self-interest will thrive far beyond a society built around anything else. The ideal of "The invisible hand".
I CAN remember the three ways in which Smith said division of labor increases output
1.) Workers who specialize in one job become much better at doing it.
2.) With specilization, the time that it would take people to switch between jobs is eliminated.
3.) Workers who specilize on one job often invent more affective ways for performing that job.
I CAN remember Mill's concept of "workfare" instead of welfare and why he believed it was important to add an expectation of work in order to receive welfare payments.
Believed that an expectation of work should be attached to a system of welfare payments for all except those who are disabled or severely damaged.
I CAN regurgitate on demand the first six points of Marx's 10-point plan. Because by the time we've gotten through the first six, I'm pretty sure we all recognize that this is not a plan we like.
Abolish private property, heavy progressive income tax, abolish all right of inheritance, confiscate all property of all emigrants and rebels, central bank, government control of communication and transportation.
I CAN name the two main points of Marshall's Law of Demand.
Price declines, quantity of demand increase; when price increases, quantity of demand decreases.
I CAN define opportunity cost as used by Ricardo.
What you must give up in order to get something else.
I CAN define "economics" using the definition used in class.
How we do better than we are right now.
I CAN recall Marx's and Mill's stances on inheritance, remembering also that many think inheritance is part of personal property and should therefore be rightly owned and passed on without penalty.
I CAN remember what Keynes said is the most important component of overall demand. And I CAN remember what is the main determinant of how much that component spends.
Households who buy the majority of products. Income.
I CAN remember what Adam Smith says is the standard by which national wealth should be measured.
The standard living of households.
I CAN recall Smith's nickname for the free market forces that guide a seller's decision making.
The invisible hand.
I CAN identify what Smith believed to be the chief engine of economic growth.
I CAN identify all of the beliefs Adam Smith held about protectionism and regulation.
I CAN identify why Mill did not like progressive taxes and preferred proportional taxes
Disliked progressive tax because it could discourage work. Preferred proportional taxes because he believed in fairness.
I CAN identify what Marx saw as the key to capitalism's functioning.
I CAN recognize Malthus' beliefs about overpopulation, reducing relief to the poor, and preventative checks.
Population would double every 25 years; preventative checks was to urge restrictions on food export and imports.
I CAN remember what the Mercantilists believed about trade, namely their protectionist beliefs.
Nations can keep a solid structure by offering monopolies, privileges, patents and subsidies to those loyal to the crown.
Nations should pursue colonies for the pursuit of precious resources.
Restrict foreign trade in order to export more than you import.
I CAN remember that economics is all about trade-offs, choices, and consequences.
All about trade-offs, choices, and consequences.
I CAN remember about marginal utility - namely what Marshall said to do if $1 spent on A brings more pleasure than $1 spent on B.
I CAN remember what Keynes said was the best way to end a recession.
Decrease government spending.
I CAN identify the effects that altering prices or tax rates can have on the revenue generated by that elastic item or tax. (Remember? The section stating that elasticity is an important concept to understand for those trying to generate revenue?)
I CAN recall how Ricardo said a nation or individual should choose that activity in which to specialize
Goods they have a comparative advantage in.
I CAN identify the economic system that, throughout history, can be credited with the greatest improvements in standard of living for the greatest number of people.