MGT 8803 Final Exam Question with Verified
Correct Answers
3 factors that effect planning of organization
1) organization level (more heirarchy better with more stability)
2) degree of uncertainty (more uncertain, shorter planning horizon)
3) length of future commitments (planning horizon should be as long as length of longest
commitment by management
4 functions of management
1) planning: business goals
2) organizing: allocating resources
3) leading: coordinating and directing
4) controlling: observe and analyze metrics to ensure completion of task
4 types of plans
1) strategic: broad plans with missions and goals
2) functional: related to areas of biz that support strategic plans
3) operational/tactical: narrow focus of specific activities
4) contingency: handles risks and what-ifs
business strategy
Goal directed actions to achieve superior performance and develop competitive advantage
creating competitive advantage
,1) cost leadership: underprice competition but retain higher profit margin
2) differentiation: charge higher premium than competitors for better value
3) focus (segmentation): market niches -- goes well with differentiation
competitive parity
When 2 or more firms in the same industry perform at the same level
firm's business model
Results of prior choices processes and relationships that are unique to the firm that help
explain performance along with strategy
components of a business model
1) markets service served: selection of markets firm chooses to compete in
2) firm infrastructure: development of core competencies to create competitive advantage
3) economic model and how revenues are generated and sources of cost
core competencies
Unique capabilities and resources that enable the firm to deliver and support a value
proposition to its customer
activity map
Diagnostic tool that can be used to understand how an organization connects its value prop to
the activities that enable the organization to create a competitive advantage
- Darker circles represent foundations of the business model
- Lighter circler show how strategy is implemented through clusters of tightly linked
activities
,- Useful for strengthening strategic fit and assessing source and strength of competitive
advantage
levels of strategy
1) corporate level strategy: what businesses company will vest in and what they will do + sets
grand strategies
2) business unit level strategy: competitive strategy is developed (small firm -- biz and corp
function as one // large firm -- each of biz units develop their own buisness unit level
strategy)
3) functional level strategy: activities of different functional areas to help achieve overall biz
strategy
grand strategies (business strategies)
1) growth strategy: organization attempts to increase level of its operations to increase
revenue and profitability
2) stability strategy: absence of significant change -- maintaining market share (small firm --
reduces risk and defends position // large firm -- use in comb of other strategies while
pursuing expansion for others)
3) renewal strategy: defensive strategy -- reducing in size or seeking stability (retrenchment:
short run strategy for minor performance problems // turnaround: for more serious issues like
bankruptcy)
4 ways firms grow
1) concentration: focusing on core business and increasing volume of products offered or
number of markets served
2) diversification: growth via different industry -- determined at corp level
, 3) vertical integration: growing by gaining control of either firm inputs or outputs
4) horizontal integration: growing by combining with a competitor
AFI framework
1) analysis: vision, mission, values, external and interal analysis
2) formulation: corporate, business, and functional strategy
3) implementation: structure, culture, processes, capabilities, tech, governance, and business
ethics
strategic management process
1) identify organization's mission, obj, and strategies
2) analyze external environment
3) evaluated internal resources
^^ SWOT analysis
4) managers formulate strategies
5) implementation of strategies
6) managers evaluate results
vision statement
Expression about what the organization ultimately wants to accomplish
strategic intent
Staking out of a desired leadership position in the industry -- focus on future and attainment
of ambitious, challenging goals
strategic planning process
Correct Answers
3 factors that effect planning of organization
1) organization level (more heirarchy better with more stability)
2) degree of uncertainty (more uncertain, shorter planning horizon)
3) length of future commitments (planning horizon should be as long as length of longest
commitment by management
4 functions of management
1) planning: business goals
2) organizing: allocating resources
3) leading: coordinating and directing
4) controlling: observe and analyze metrics to ensure completion of task
4 types of plans
1) strategic: broad plans with missions and goals
2) functional: related to areas of biz that support strategic plans
3) operational/tactical: narrow focus of specific activities
4) contingency: handles risks and what-ifs
business strategy
Goal directed actions to achieve superior performance and develop competitive advantage
creating competitive advantage
,1) cost leadership: underprice competition but retain higher profit margin
2) differentiation: charge higher premium than competitors for better value
3) focus (segmentation): market niches -- goes well with differentiation
competitive parity
When 2 or more firms in the same industry perform at the same level
firm's business model
Results of prior choices processes and relationships that are unique to the firm that help
explain performance along with strategy
components of a business model
1) markets service served: selection of markets firm chooses to compete in
2) firm infrastructure: development of core competencies to create competitive advantage
3) economic model and how revenues are generated and sources of cost
core competencies
Unique capabilities and resources that enable the firm to deliver and support a value
proposition to its customer
activity map
Diagnostic tool that can be used to understand how an organization connects its value prop to
the activities that enable the organization to create a competitive advantage
- Darker circles represent foundations of the business model
- Lighter circler show how strategy is implemented through clusters of tightly linked
activities
,- Useful for strengthening strategic fit and assessing source and strength of competitive
advantage
levels of strategy
1) corporate level strategy: what businesses company will vest in and what they will do + sets
grand strategies
2) business unit level strategy: competitive strategy is developed (small firm -- biz and corp
function as one // large firm -- each of biz units develop their own buisness unit level
strategy)
3) functional level strategy: activities of different functional areas to help achieve overall biz
strategy
grand strategies (business strategies)
1) growth strategy: organization attempts to increase level of its operations to increase
revenue and profitability
2) stability strategy: absence of significant change -- maintaining market share (small firm --
reduces risk and defends position // large firm -- use in comb of other strategies while
pursuing expansion for others)
3) renewal strategy: defensive strategy -- reducing in size or seeking stability (retrenchment:
short run strategy for minor performance problems // turnaround: for more serious issues like
bankruptcy)
4 ways firms grow
1) concentration: focusing on core business and increasing volume of products offered or
number of markets served
2) diversification: growth via different industry -- determined at corp level
, 3) vertical integration: growing by gaining control of either firm inputs or outputs
4) horizontal integration: growing by combining with a competitor
AFI framework
1) analysis: vision, mission, values, external and interal analysis
2) formulation: corporate, business, and functional strategy
3) implementation: structure, culture, processes, capabilities, tech, governance, and business
ethics
strategic management process
1) identify organization's mission, obj, and strategies
2) analyze external environment
3) evaluated internal resources
^^ SWOT analysis
4) managers formulate strategies
5) implementation of strategies
6) managers evaluate results
vision statement
Expression about what the organization ultimately wants to accomplish
strategic intent
Staking out of a desired leadership position in the industry -- focus on future and attainment
of ambitious, challenging goals
strategic planning process
