BAD 4013 Exam 1 | Study Guide, Practice Questions & Business Exam
Review
Steps in the Strategic Management Process - ✔✔1. Establish a vision, mission statement, and
objectives
2. Do internal and external analysis
3. Formulate strategy
4. Implement strategy
5. Evaluate performance
Vision - ✔✔A picture of what the firm wants to be and what it wants to ultimately achieve.
This should be customer focused.
Mission Statement - ✔✔Encompasses the purpose of the company and the way the firm
competes and its sources of competitive advantage. Less general than the vision.
Objectives - ✔✔Operationalization of the mission statement. This is the most specific with a
short time horizon.
Performance Metric - ✔✔A metric which organizations can be gauged in an attempt to better
understand how well their organizations are competing in the market.
, Performance Referent - ✔✔A benchmark used to make sense of an organization's standing
along a performance measure. Comparing your performance to a referent tells you how you're
doing.
Balance Scorecard - ✔✔Provides a "balance" between financial measures and other measures
that are important for understanding organizational activities that lead to sustained, long-term
performance.
Balance Scorecard - Financial - ✔✔How are our financial returns (ROA, profits, etc.)?
Balance Scorecard - Customer - ✔✔How are our customers feeling about this (# of new or
repeat customers, same store sales, etc.)?
Balance Scorecard - Internal Business Process - ✔✔How efficient are we in how we do what we
do (speed of service, etc.)?
Balance Scorecard - Learning and Growth - ✔✔What new skills learned by each employee
(trainings offered, etc.)?
Triple Bottom Line - ✔✔1. People
2. Planet
3. Profits
Competitive Advantage - ✔✔Doing things differently or similar things in different ways than
competitors.
Review
Steps in the Strategic Management Process - ✔✔1. Establish a vision, mission statement, and
objectives
2. Do internal and external analysis
3. Formulate strategy
4. Implement strategy
5. Evaluate performance
Vision - ✔✔A picture of what the firm wants to be and what it wants to ultimately achieve.
This should be customer focused.
Mission Statement - ✔✔Encompasses the purpose of the company and the way the firm
competes and its sources of competitive advantage. Less general than the vision.
Objectives - ✔✔Operationalization of the mission statement. This is the most specific with a
short time horizon.
Performance Metric - ✔✔A metric which organizations can be gauged in an attempt to better
understand how well their organizations are competing in the market.
, Performance Referent - ✔✔A benchmark used to make sense of an organization's standing
along a performance measure. Comparing your performance to a referent tells you how you're
doing.
Balance Scorecard - ✔✔Provides a "balance" between financial measures and other measures
that are important for understanding organizational activities that lead to sustained, long-term
performance.
Balance Scorecard - Financial - ✔✔How are our financial returns (ROA, profits, etc.)?
Balance Scorecard - Customer - ✔✔How are our customers feeling about this (# of new or
repeat customers, same store sales, etc.)?
Balance Scorecard - Internal Business Process - ✔✔How efficient are we in how we do what we
do (speed of service, etc.)?
Balance Scorecard - Learning and Growth - ✔✔What new skills learned by each employee
(trainings offered, etc.)?
Triple Bottom Line - ✔✔1. People
2. Planet
3. Profits
Competitive Advantage - ✔✔Doing things differently or similar things in different ways than
competitors.
