C483 STUDY GUIDE - NOTES EXAM QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES

C483 STUDY GUIDE -
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NOTES EXAM QUESTIONS AND CORR
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ECT DETAILED ANSWERS WITH RATI
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ONALES

,Section 1: Strategic Planning jv jv jv




Lesson 1: Basics of Strategic Planning
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Describe the steps in the formal planning process
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Chapter 4- "The Basic Planning Process"
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Focus on= Exhibit 4.1 and steps involved.
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1. Situational Analysis - jv jv

A process planners use, within time and resource constraints, to gather, interpret, and summari
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ze all information relevant to the planning issue under consideration.
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2. Alternative Goals and Plans – jv jv jv jv

generate multiple goals that could be pursued and the plan on how to achieve them.
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3. Goal and Plan Evaluation – jv jv jv jv

managers will evaluate the advantages, disadvantages, and potential effects of each goa
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l and plan. jv jv

4. Goal and Plan Selection – jv jv jv jv

after they asses the goals and plans, they will pick the best one they seem fit.
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5. Implementing – jv

must understand the plan, have the resources to implement it, and be motivated to do so.
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6. Monitoring and controlling – jv jv jv

must continually monitor the performance to make sure it is working and develop control syste
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ms to measure performance and take corrective action when needed.
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Describe the concepts of strategic vision (intent), mission, and goals
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Chapter 4- “Strategic Planning”
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Focus on= Establishing Mission, Vision and Goals section
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• Strategic vision – The long-term 5 direction and strategic intent of a company.
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• Mission – An organization’s basic purpose and scope of operations
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• Goal – A target or end that management desires to reach
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Explain the components of a SWOT analysis and how it is used in the strategic planning process
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Chapter 4- “SWOT Analysis and Strategy Formulation”
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Focus on= familiarizing yourself with the External and Internal environments and putting it together in a
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SWOT analysis.
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• SWOT analysis – jv jv

A comparison of strengths, weaknesses, opportunities, and threats that helps executives formul
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ate strategy jv

• Strengths and Weaknesses – refer to internal resources jv jv jv jv jv jv jv

• Opportunities and Threats – arise in the macroenvironment and competitive environment.
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• Used to help formulate a strategy that capitalizes on the organization’s strengths, neutralizes its
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weaknesses, and counters potential threats, and pursues and creates opportunities.
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, Describe the types of corporate strategies that organizations can use
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Chapter 4- “Corporate Strategy” under section on SWOT Analysis
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Focus on= Exhibit 4.10 and each of the components and what they mean.
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• A Concentration strategy (the purple center of the figure) focuses on a single business
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competing in a single industry. jv jv jv jv

• A vertical integration strategy (horizontal arrows in the figure) expands the company’s domain
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vto include supplier and distributers
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• A strategy of concentric diversification (expanded center of the figure) moves into new but
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vrelated business jv

• Conglomerate diversification (Multiple arrows pointing outside the primary industry) expandsjv jv jv jv jv jv jv jv jv jv

into unrelated business.
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Understand the two kinds of business strategies that companies can use to gain competitive adv
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antage.
Chapter 4- “Business Strategy” section
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Focus on= both the low-cost and differentiation strategies and what they mean
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• the major actions by which an organization builds and strengthens its competitive position in the
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marketplace.
• Low-cost strategy – jv jv

A strategy an organization uses to build competitive advantage by being efficient and offerin
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g a standard, no-frills product.
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• Differentiation strategy – jv jv

A strategy an organization uses to build competitive advantage by being unique in its industry or
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market segment along one or more dimensions. jv jv jv jv jv jv




Explain what a Core Competency/Capability means for an organization.
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Chapter 4- “Resources and Core Capabilities”
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Focus on= Exhibit 4.8 and the concept of core competency/capability
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• When resources are valuable, rare, inimitable, and organized, they
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compromise a company’s core capabilities. jv jv jv jv

• Core competence - jv jv

A unique skill and/or knowledge an organization possesses that give
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s it an edge over competitors
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