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Strat Management Midterm Exam

Terms in this set (37)

The key question examined by strategic management is
Why do some firms outperform other firms?
_____________ _____________________ examines how actions and events involving top executives influence a firms success or failure.
strategic management
Formal tools are not enough, ______________ is just as important as strategic management. Mastering strategy is therefore part art and part science.
creativity
A ____________ is typically a higher level, broad goal without a ton of specifics.
strategy
___________ is a complex concept that involves many different processes and activities within an organization. It involves goals and objectives that an organization needs to achieve to be successful in the marketplace.
strategy
An _____________ strategy is the strategy that an organization hopes to execute. These strategies are described in detail within an organization's strategic plan
intended
When a strategic plan (Intended strategy) is created for a new venture, it is called a
business plan
An ______________ strategy is an unplanned strategy that arises in response to unexpected opportunities and or challenges. Sometimes these strategies end up in disasters, but can also lead to tremendous success.
emergent
A _______________ strategy is the strategy that an organization actually follows. These strategies are a product of a firm's intended strategy, the firm's deliberate strategy, and its emergent strategy.
realized
An ________________ strategy refers to the abandoned part of the strategy
unrealized
The word _____________ has its roots in warfare. The Greek verb strategos means "army leader" and the idea of stratego (from which we get the word strategy) refers to defeating an enemy by effectively using resources
strategy
In collaboration with other stakeholder, leadership sets the ______________ for the firm.
Vision
The _______________ is what the organization aspires to be, the big goal it wants to accomplish.
vision
The vision is developed within the organization's _________________: its purpose for being.
mission
Well-written ____________ statements effectively capture an organization's identity and provide answers to the fundamental question: Who are we?
mission
While a _____________ looks to the future, a mission captures the key elements of the organization's past and present
vision
A ______________ statement should explain to stakeholders why they should support the organization by making clear what important role or purpose the organization plays in society. They are now usually short and concise.
mission
__________________ ______________________ refers to how well an organization is doing to reach its vision, mission, and goals.
organizational performance
Two important considerations of organizational performance are what?
performance measures and performance benchmarks
To organize performance measures, Professor Robert Kaplan and Professor David Norton of Harvard University developed a tool called the ________________ ________________.
balanced scorecard
Using the ______________ ___________________ helps managers resist the temptation to fixate on financial measures and instead monitor a diverse set of important measures
balanced scorecard
_____________ ______________ ________________ (EVC) is the difference between what a customer is willing to pay (WTP) for a product and the cost incurred to produce the product
economic value creation
A firm has a ____________ ________________ over a competitor if it has a larger economic value creation than that competitor.
competitive advantage
______________ analysis is one important tool that executives can rely on to organize factors within the general environment and to identify how these factors influence industries and the firms within them.
PESTEL
PESTEL reflects the names of the six segments of the _____________ ___________________.
general environment
What does PESTEL stand for?
Political
Economic
Sociocultural
Technological
Environmental
Legal
Wise executives carefully examine each of the six segments of _______________ analysis to identify major opportunities and threats and then adjust their firms' strategies accordingly
PESTEL
For PESTEL analysis, ____________ factors include elements such as tax policies, changes in trade restrictions and tariffs, and the stability of governments.
political
For PESTEL analysis, _______________ factors include elements such as interest rates, inflation rates, gross domestic product, unemployment rates, levels of disposable income, and the general growth or decline of the economy.
economic
For PESTEL analysis, ___________________ factors include trends in demographics such as population size, age, and ethnic mix, as well as cultural trends such as attitudes toward obesity and consumer activism.
socio-cultural
For PESTEL analysis, __________________ factors include, for example, changes in the rate of new product development, increases in automation, and advancements in service industry delivery.
ecological
For PESTEL analysis, ______________________ factors, also called ecological factors, include, for example, natural disasters, global warming, pollution, and weather patterns.
environmental
For PESTEL analysis, ____________ factors include laws involving issues such as employment, health and safety, discrimination, and antitrust.
legal
What are Porter's five forces?
1. Threat of potential entrants
2. Bargaining power of suppliers
3. Bargaining power of buyers
4. Threat of substitutes
5. Rivalry of industry competitors
The Five Forces that determine the profit potential of a particular industry is called
Porter's five forces
Porters Five Forces, Rivalry of Industry competitors: The ___________________ in an industry are firms that produce similar products or services.
competitors
Porters Five Forces, Rivalry of Industry competitors: __________________ use a variety of moves such as advertising, new offerings, and price cuts to try to outmaneuver one another to retain existing buyers and to attract new ones.
competitors
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