BUS 301 Final Exam Study Guide (Chapter 6-12) Questions And Verified Answers Graded A+.

Strategic management - correct answer A five-step process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies. Strategic planning - correct answer The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities Steps for Strategic Management - correct answer Providing Direction & Momentum Encouraging New Ideas Develop a sustainable competition advantage Mission Statement - correct answer a statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions expresses the purpose of the organization Vision Statement - correct answer A long-term goal describing "what" an organization wants to become; it is clear sense of the future and the actions needed to get there. Effective strategy - correct answer a strategy that promotes a superior alignment between the organization and its environment and the achievement of strategic goals. Strategic positioning - correct answer attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company 3 Principles of Strategic Positioning - correct answer Strategy Is the Creation of a Unique & Valuable Position Strategy Requires Trade-offs in Competing Strategy Involves Creating a "Fit" Among Activities Trade-offs - correct answer Alternatives that must be given up when one is chosen rather than another Process for Strategic Management - correct answer Establish the mission and vision Establish the grand strategy with environmental scanning Formulate the strategic plans Carry out the strategic plans Maintain strategic control grand strategy - correct answer after an assessment of current organizational performance, then explains how the organization's mission is being accomplished growth strategy - correct answer a grand strategy that involves expansion as in sales revenues, market share, number of employees, or number of customers, or for nonprofits clients served stability strategy - correct answer grand strategy that involves little or no significant change defensive strategy - correct answer grand strategy involving reduction in the organization's efforts Strategy formulation - correct answer the process of choosing among different strategies and altering them strategy implementation - correct answer putting strategic plans into effect Strategic control - correct answer consists of monitoring the execution of strategy and making adjustments, if necessary Steps to keep a strategic plan on track - correct answer Engage people Keep it simple Stay focused Keep moving Competitive intelligence - correct answer gaining information about one's competitor's activities that you can anticipate their moves and react appropiately SWOT analysis - correct answer strengths, weaknesses, opportunities, threats identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T) organizational strengths - correct answer the skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission organizational weaknesses - correct answer Drawbacks that hinder an organization in executing strategies in pursuit of its mission organizational opportunities - correct answer environmental factors that the organization may exploit for competitive advantage organizational threats - correct answer environmental factors that hinder an organization's achieving a competitive advantage forecast - correct answer a vision or projection about the future trend analysis - correct answer A hypothetical extension of a past series of events into the future Contingency planning - correct answer The process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives. Porter's model for industry analysis - correct answer Business-level strategies originate in five primary competitive forces in the firm's environment: (1) threats of new entrants, (2) bargaining power of suppliers, (3) bargaining power of buyers, (4) threats of substitute products of services, and (5) rivalry among competitors Growth strategy - correct answer a strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business Porter's four competitive strategies - correct answer Cost-leadership Differentiation Cost-focus Focused-differentiation cost-leadership strategy - correct answer keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market differentiation strategy - correct answer offer products that are of unique and superior value compared to those of competitors but to target a wide market cost-focus strategy - correct answer keep the costs of a product below those of competitors and to target a narrow market. focused-differentiation strategy - correct answer offer products or services that are of unique and superior value compared with those of competitors and to target a narrow market single-product strategy - correct answer A company makes and sells only one product within its market diversification - correct answer operating several businesses under one ownership that are not related to one another unrelated diversification - correct answer Operating several businesses under one ownership that are not related to one another related diversification - correct answer A strategy in which an organization operates in several different businesses, industries, or markets that are somehow linked An organization under one ownership operates separate businesses that are related to one another synergy - correct answer the economic value of separate, related businesses under one ownership and management is greater together than the businesses are worth separately BCG matrix - correct answer a means of evaluating strategic business units on the basis of their business growth rates and their share of the market 3 cores Processes of business - correct answer People Strategy Operations decision - correct answer Choosing among two or more alternatives. Decision making - correct answer the process of identifying and choosing alternative courses of action Directive Decision style - correct answer Action oriented Decisive Conceptual Analytical decision making - correct answer Generates alternative solutions, compares solutions to a set of criteria and selects the best course of action. Aims to produce optimal solution by comparing options. Emphasizes analytic reasoning guided b