Management Exam 2 ACTUAL UPDATED QUESTIONS AND CORRECT ANSWERS
Strategic Positioning Protecting what makes you special so you can keep beating your competitors.
Corporate Level Strategy Deciding which businesses the company should own and how they all fit together.
Business Level Strategy Deciding how to win against rivals in a specific market.
Functional Level Strategy The "how-to" plan for specific departments to support the business goals.
Strategic Management Process A five-step loop used to create, put in place, and fix a company's long-term plan.
SWOT Analysis A tool to list a company's Strengths, Weaknesses, Opportunities, and Threats.
Forecasting Predicting the future
Benchmarking Comparing the best
Growth Strategies a grand strategy that involves expansion
Stability Strategy a grand strategy that involves little or no change
Defensive Strategey a grand strategy that involves a decrease in the organization's efforts.
BCG Matrix Stars- they are the future winners.
Cash Cows- Milk these for cash to fund other projects.
Question Marks- Risky-could become stars or fail.
Dogs- Get rid of them—they drain resources.
Diversification growing your company by entering new markets with new products
Vertical Integration When a company expands by buying its suppliers or its distributors
, Porter's 5 Competitive Forces Model 1. Threat of new entrants.
2. Bargaining power of suppliers.
3. Bargaining power of buyers.
4. Threats of substitute products or services.
5. Rivalry among competitors.
Porter's 4 competitive strategies 1. Cost-Leadership Strategy: Keeping costs and prices low for a wide market.
2. Differentiation Strategy: Offering unique and superior value for a wide market.
3. Cost-Focus Strategy: Keeping costs and prices low for a narrow market.
4. Focused-Differentiation Strategy: Offering unique and superior value for a
narrow market.
Strategic Implementation and control Carrying out the plan and then checking to see if it's actually working.
Decision and Decision Making Choosing between different options to solve a problem or take an opportunity.
Rational Model of Decision Making A step-by-step logical way to make the "perfect" choice.
Constraints of Rational Decision Making Real-world obstacles that stop us from making a "perfect" logical choice.
Bounded Rationality Accepting that we can't know everything, so we make the best decision we can
with what we have.
Nonrational Decision Making Making decisions based on uncertainty and risk rather than perfect logic.
Satisficing Picking the first option that is "good enough" rather than searching for the
absolute best.
Intuition making a choice off of a gut feeling.
Ethical Decision Making Choosing the path that is not only legal but also morally right.
Business Analytics Using data and math to find patterns that help managers make better decisions.
Big Data Massive collections of information that are too big and complex for regular
software to handle.
Big Data Analytics The process of actually studying Big Data to find secret patterns or trends.
Artificial Intelligence (AI) Computer systems designed to do things that usually require human intelligence.
General Decision Making styles The way an individual perceives and responds to information when making a
choice.
Strategic Positioning Protecting what makes you special so you can keep beating your competitors.
Corporate Level Strategy Deciding which businesses the company should own and how they all fit together.
Business Level Strategy Deciding how to win against rivals in a specific market.
Functional Level Strategy The "how-to" plan for specific departments to support the business goals.
Strategic Management Process A five-step loop used to create, put in place, and fix a company's long-term plan.
SWOT Analysis A tool to list a company's Strengths, Weaknesses, Opportunities, and Threats.
Forecasting Predicting the future
Benchmarking Comparing the best
Growth Strategies a grand strategy that involves expansion
Stability Strategy a grand strategy that involves little or no change
Defensive Strategey a grand strategy that involves a decrease in the organization's efforts.
BCG Matrix Stars- they are the future winners.
Cash Cows- Milk these for cash to fund other projects.
Question Marks- Risky-could become stars or fail.
Dogs- Get rid of them—they drain resources.
Diversification growing your company by entering new markets with new products
Vertical Integration When a company expands by buying its suppliers or its distributors
, Porter's 5 Competitive Forces Model 1. Threat of new entrants.
2. Bargaining power of suppliers.
3. Bargaining power of buyers.
4. Threats of substitute products or services.
5. Rivalry among competitors.
Porter's 4 competitive strategies 1. Cost-Leadership Strategy: Keeping costs and prices low for a wide market.
2. Differentiation Strategy: Offering unique and superior value for a wide market.
3. Cost-Focus Strategy: Keeping costs and prices low for a narrow market.
4. Focused-Differentiation Strategy: Offering unique and superior value for a
narrow market.
Strategic Implementation and control Carrying out the plan and then checking to see if it's actually working.
Decision and Decision Making Choosing between different options to solve a problem or take an opportunity.
Rational Model of Decision Making A step-by-step logical way to make the "perfect" choice.
Constraints of Rational Decision Making Real-world obstacles that stop us from making a "perfect" logical choice.
Bounded Rationality Accepting that we can't know everything, so we make the best decision we can
with what we have.
Nonrational Decision Making Making decisions based on uncertainty and risk rather than perfect logic.
Satisficing Picking the first option that is "good enough" rather than searching for the
absolute best.
Intuition making a choice off of a gut feeling.
Ethical Decision Making Choosing the path that is not only legal but also morally right.
Business Analytics Using data and math to find patterns that help managers make better decisions.
Big Data Massive collections of information that are too big and complex for regular
software to handle.
Big Data Analytics The process of actually studying Big Data to find secret patterns or trends.
Artificial Intelligence (AI) Computer systems designed to do things that usually require human intelligence.
General Decision Making styles The way an individual perceives and responds to information when making a
choice.
