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Bus Policy and Strategy MidTerm Kocur

Terms in this set (32)

Strategic Management
the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives
1. Formulating
2. Implementing
3. Evaluating
Three main parts in creating a strategy
Formulating strategy
part of creating a strategy where you are taking all internal and external things in to consideration to create the plan
Implenting strategy
part of creating a strategy where you are putting it in motion
-this might end up being a 5-10 year plan
Cross Functional Decisions
making decisions that are affecting the entire organization (everyone who works in the organization)
-SO these decisions require input from different areas
Figuring out where they want to go
Most difficult thing organizations face in strategic planning?
Participation
Contribution
Teamwork
Availability
Communication
5 pieces of evaluative criteria for teamwork
External Audit
Focuses on identifying and evaluating trends and events beyond the control of a single firm
-reveals key opportunities and threats confronting and organization
1. Economic
2. Social demographic, cultural, natural environment
3. Political government, legal
4. Technological
5. Competitive
Five Major External Forces
Out of control
The price of oil (per barrel) is -4% YGO (in or out of control?)
out of control
E-commerce spending among American shoppers +13% during the 2017 holiday season (in or out of control?)
out of control
growth in the 24-25 age demographic is expected to outpace all other groups in 2024 (in or out of control?)
Opportunities and Threats
What does the external audit reveal?
Strengths and Weaknesses
What does the internal audit reveal?
Internal Audit
focuses on identifying factors that are in control of the firm
1. Marketing
2. Finance
3. Operations
4. R & D
5. I.T. and I.S.
Five Key Internal Forces
Distinctive Competencies
things about a firm that cannot be easily matchd or imitated by competitors
-something other companies cannot replicate
Objectives
These are what you need in order to achieve a mission
strategy(ies)
These are what you need in order to achieve your objectives
Tactic(s)
These are what you need in order to achieve your strategies
Specific
Measurable
Achievable
Realistic
Timely
SMART Goals
This is a SMART objective, BUT could be more time-bound
"Increase revenue by 10% annually"
-is this a SMART Goal? Is there anything missing?
Fairly SMART, but needs more measurementm and achievability and reality of the goal could be debated
"Grow sales to existing cusomter by year-end 2018"
-is this a SMART Goal? Is there anything missing?
Forward Integration
Business strategy that involves gaining ownership or increased control over distributors or retailers
-American Eagle does this
Backwards Integration
Business strategy of seeking ownership or increased control of firm's suppliers
-Ben and Jerry's
Horizontal Integration
Business Strategy where you are concerned with what is on your playing field --> what are your competitor's doing?
-trying to gain control over your competition (almost like a monopoly)
-Anheuser-Busch
Vertical Integration
Business Strategy of gaining ownership of entities in the supply chain either before or after the firm
-Having control over every step of the process
-Andrew Carnegie and the steel mills
Market Penetration Strategy
Intensive strategy that seeks to increase market share for present products or services in present markets through GREATER MARKETING efforts
-Nicoderm --> advertising differently to get more sales happening than just in January
Market Development
An Intensive business strategy which involves introducing present products or services into NEW GEOGRAPHIC AREAS
-"Goody's" only being popular in the South --> trying to change that
Product Development Strategy
Intensive Business Strategy which seeks to increase sales by IMPROVING or MODIFYING present products or services
-Tums --> big variety instead of just chalky crumbly chews
Related Diversification
a diversification business strategy where there is a competitively valuable cross-business strategic fit
-Dr. Pepper-Snapple and Keurig all pairing togther
Unrelated diversification
Diversification business strategy where there is no competitively valuable cross-business relationship
-Berkshire Hathaway
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