Which of the following strategies pertains to the major functional departments within the business unit?

Glossary Chapter 7 BCG matrix A concept developed by the Boston Consulting Group that evaluates strategic business units with respect to the dimensions of business growth rate and market share. business-level strategy The level of strategy concerned with the question “How do we compete?” Pertains to each business unit or product line within the organization. competitive advantage What sets the organization apart from others and provides it with a distinctive edge in the marketplace. core competence A business activity that an organization does particularly well in comparison to competitors. corporate-level strategy The level of strategy concerned with the question “What business are we in?” Pertains to the organization as a whole and the combination of business units and product lines that make it up. cost leadership A type of competitive strategy with which the organization aggressively seeks efficient facilities, cuts costs, and employs tight cost controls to be more efficient than competitors. differentiation A type of competitive strategy with which the organization seeks to distinguish its products or services from that of competitors. diversification A strategy of moving into new lines of business. dynamic capabilities Leveraging and developing more from the firm’s existing assets, capabilities, and core competencies in a way that will provide a sustained competitive advantage. focus A type of competitive strategy that emphasizes concentration on a specific regional market or buyer group. functional-level strategy The level of strategy concerned with the question “How do we support the business-level strategy?” Pertains to all of the organization’s major departments. globalization The standardization of product design and advertising strategies throughout the world. multidomestic strategy The modification of product design and advertising strategies to suit the specific needs of individual countries. portfolio strategy The organization’s mix of strategic business units and product lines that fit together in such a way as to provide the corporation with synergy and competitive advantage. related diversification Moving into a new business that is related to the company’s existing business activities. strategic business unit (SBU) A division of the organization that has a unique business mission, product line, competitors, and markets relative to other SBUs in the same corporation. strategic management The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals. strategy The plan of action that prescribes resource allocation and other activities for dealing with the environment, achieving a competitive advantage, and attaining organizational goals. strategy execution The stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes. strategy formulation The stage of strategic management that involves the planning and decision making that lead to the establishment of the organization’s goals and of a specific strategic plan. SWOT analysis Analysis of the strengths, weaknesses, opportunities, and threats (SWOT) that affect organizational performance synergy The condition that exists when the organization’s parts interact to produce a joint effect that is greater than the sum of the parts acting alone. transnational strategy A strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries. unrelated diversification Expanding into a totally new line of business. vertical integration Expanding into businesses that either produce the supplies needed to make products or that distribute and sell those products.

____ are called the action steps by which an organization intends to attain its strategic goals

Of the strategic management functions, which is considered the most fundamental

The planning process starts with:

a formal mission that defines the organization's purpose

A statement that identifies distinguishing characteristics of an organization is know as a ____

To remain competitive, companies should develop strategies that focus on core competencies, providing synergy, and creating value for ____

____ refers to a desired future state that an organization attempts to realize

The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as:

Which of the following is a business activity that an organization does especially well relative to is competition?

____ level strategy pertains to the major functional departments within the business unit.

Sears' decision to sell off much of its financial services division is an example of a:

When Coca-Cola introduced Surge, a new citrus soft drink, what type of strategy was being pursued?

____ specify future ends and ____ specify today's means

Managers are often referred to as:

Which of the following is a choice made from available alternatives

Programmed decisions are made in response to ____ organizational problems

Examples of non-programmed decisions would include the decision to:

develop a new product or service

Which of the following means that all the information the decision-maker needs is fully available?

Which of the following means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to chance?

Which of the following refers to the deployment of organizational resources to achieve strategic goals?

Organizational structure is defined as the:

framework in which the organization defined how tasks are divided, resources are deployed, and departments are coordinated

The adoption of a new idea or behavior by an organization is known as organizational ____.

____ refers to innovations in products, services, or processes that radically change an industry's rules of the game for producers and consumers.

The innovation strategy for changing products and technologies that involves designing the organization to encourage creativity and the initiation of new ideas is known as ____.

all of the following are characteristics of creative individuals except ____.

4 levels of goal planning

mission statement, strategic goals/ plans (senior management), tactical goals/ plans (middle management), operational goals/plans (departments)

Set goals, develop action plans, review process, appraise overall performance.

focuses manager and employee efforts on activities that will lead to goal attainment. Can improve performance at all company levels. Improves employee motivation, and aligns individual and departmental goals with company goals.

Criteria for effective goals

specific and measurable, defined time period, cover key result areas, challenging but realistic, linked to rewards.

Organizational Planning Process

1. develop the plan
2. translate the plan
3. plan operations
4. execute the plan
5. monitor and learn

set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.

Elements of competitive advantage

target customers, achieve synergy, create value, exploit core competence

Global Corporate Strategies

Globalization: treats world as a single market, standardizes global product/advertising
Transnational: seeks to balance global efficiencies and local responsiveness, combines standardization and customization
Export: domestically focused, exports a few domestically produced products to selected countries
Multidomestic: handles markets independently for each country, adapts products/ advertising

Functional Level Strategy

action plans used by major departments to support the execution of business-level strategy

Boston Consulting Group: Stars: rapid growth and expansion. Question marks: new ventures, risky-few become stars, Cash Cows: milk to finance question marks and starts, Dogs: no investment, keep if some profit, consider disvestment

involve situations that have occurred often enough to enable decision rules to be developed and applied in the future. Ex. reorder paper

made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization. Ex. Sprint carrying the iPhone

6 steps in the decision making process

1. recognition of decision requirement
2. diagnosis and analysis of causes
3. development of alternatives
4. selection of desired alternative
5. implementation of chosen alternative
6. evaluation and feedback

Personal decision framework

Situation: programmed/nonprogrammed, classical, administrative, political, decision steps
+
Personal Decision: directive, analytical, conceptual, behavioral
=
Decision Choice: best solution to the problem

is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.

is the duty to perform the task or activity as assigned.

means that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.

the process managers use to transfer authority and responsibility to positions below them in the hierarchy

Tactics for overcoming resistance to change

communication/education, participation, negotiation, coercion, top management support

Concept of force field analysis

change is a result of the competition between driving and restraining forces.

Which strategies relate to the different functional areas which a strategic business unit has such as marketing production and operations finance and human resources?

Which level of strategy pertains to each business unit or product line?

Which of the following is a type of corporate level strategy that pertains to the organizations mix of strategic business units?

Which of the following are functional aspects of strategic management?