MGT 8803 ALL ANSWERS AND QUESTIONS SET A+
Role of Planning in Firm - ✔✔Planning (primary) -> organizing & staffing -> leading ->
controlling
✔✔External Context for Planning - ✔✔regulators | partners & shareholders |
competitors | suppliers | tech, econ, labor, society | communities | customers
✔✔Internal Context for Planning - ✔✔mgt's vision | mission/values | culture | people &
workforce diversity | technology | physical assets | intellectual property
✔✔Planning is important because it... - ✔✔1. provides direction & basis for coordination
2. minimize waste & redundancy
3. reduces uncertainty
4. establishes goals
5. involves & engages all levels of firm
✔✔Residual Uncertainty - ✔✔the unknowable; uncertainty that remains...important in
assessing risk
✔✔Hierarchical (Tall) Organizational Structure - ✔✔many layers of middle mgt | senior
mgrs make most operational decisions | information flows from top-down | stable
environment
✔✔Flat (Networked) Organizational Structure - ✔✔front-line employees empowered to
make decisions | information flows top-down AND bottom-up | few levels of middle mgt |
decentralized decision making | dynamic environment
✔✔Strategic Plans - ✔✔1. broadly impacts firm
2. new markets to enter or existing to leave
3. concerns overall scope of firm
4. identifies initiative to create & sustain competitive advantage
5. driven by mgt's vision, mission, values
✔✔Functional Plans - ✔✔1. implementing strategic plans
, 2. interrelated
3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
✔✔Tactical/Operations Plans - ✔✔1. narrow, specific to firm
2. allocation of specific resources to specific tasks or operations
✔✔SMART - ✔✔Specific, Measurable, Attainable, Realistic, Timely
✔✔Main objective of business strategy - ✔✔achieve superior performance in
marketplace
✔✔Strategy - ✔✔goal-directed actions a firm takes to gain & sustain superior
performance relative to competitors.
✔✔Competitive advantage - ✔✔superior performance relative to other competitors in
same industry OR industry average | temporary
*people prefer your brand over another's so they are willing to pay more (ie, Apple)
✔✔Elements of Good Business Strategy - ✔✔1. diagnosis of competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
✔✔Cost Leadership - ✔✔lowest-cost producer in industry | pricing at or below industry
avg while leveraging a low "cost" advantage
✔✔Differentiation - ✔✔economic value created is greater than competitors | uniqueness
in an industry with broad market | making products unique to allow charging premium
price
✔✔How Tesla does Differentiation - ✔✔battery technology, autonomous driving, high
performance, supercharger network, wow factor
✔✔Focus strategy - ✔✔establish either a cost leadership OR differentiation competitive
advantage but focused in a narrow market segment (ex: Rolex, Louis Vuitton)
✔✔Vision - ✔✔mgt's description of business model, technology, workforce, strategic
positioning, and goals | for inspiring employees & stakeholders
✔✔Mission - ✔✔how firm will achieve vision | product OR customer market focus
✔✔Core Values - ✔✔guiding principles of firm | support company's vision, shape
culture, & reflect company's identity & personality
Role of Planning in Firm - ✔✔Planning (primary) -> organizing & staffing -> leading ->
controlling
✔✔External Context for Planning - ✔✔regulators | partners & shareholders |
competitors | suppliers | tech, econ, labor, society | communities | customers
✔✔Internal Context for Planning - ✔✔mgt's vision | mission/values | culture | people &
workforce diversity | technology | physical assets | intellectual property
✔✔Planning is important because it... - ✔✔1. provides direction & basis for coordination
2. minimize waste & redundancy
3. reduces uncertainty
4. establishes goals
5. involves & engages all levels of firm
✔✔Residual Uncertainty - ✔✔the unknowable; uncertainty that remains...important in
assessing risk
✔✔Hierarchical (Tall) Organizational Structure - ✔✔many layers of middle mgt | senior
mgrs make most operational decisions | information flows from top-down | stable
environment
✔✔Flat (Networked) Organizational Structure - ✔✔front-line employees empowered to
make decisions | information flows top-down AND bottom-up | few levels of middle mgt |
decentralized decision making | dynamic environment
✔✔Strategic Plans - ✔✔1. broadly impacts firm
2. new markets to enter or existing to leave
3. concerns overall scope of firm
4. identifies initiative to create & sustain competitive advantage
5. driven by mgt's vision, mission, values
✔✔Functional Plans - ✔✔1. implementing strategic plans
, 2. interrelated
3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
✔✔Tactical/Operations Plans - ✔✔1. narrow, specific to firm
2. allocation of specific resources to specific tasks or operations
✔✔SMART - ✔✔Specific, Measurable, Attainable, Realistic, Timely
✔✔Main objective of business strategy - ✔✔achieve superior performance in
marketplace
✔✔Strategy - ✔✔goal-directed actions a firm takes to gain & sustain superior
performance relative to competitors.
✔✔Competitive advantage - ✔✔superior performance relative to other competitors in
same industry OR industry average | temporary
*people prefer your brand over another's so they are willing to pay more (ie, Apple)
✔✔Elements of Good Business Strategy - ✔✔1. diagnosis of competitive challenge
2. guiding policy to address competitive challenge
3. set of coherent actions to implement
✔✔Cost Leadership - ✔✔lowest-cost producer in industry | pricing at or below industry
avg while leveraging a low "cost" advantage
✔✔Differentiation - ✔✔economic value created is greater than competitors | uniqueness
in an industry with broad market | making products unique to allow charging premium
price
✔✔How Tesla does Differentiation - ✔✔battery technology, autonomous driving, high
performance, supercharger network, wow factor
✔✔Focus strategy - ✔✔establish either a cost leadership OR differentiation competitive
advantage but focused in a narrow market segment (ex: Rolex, Louis Vuitton)
✔✔Vision - ✔✔mgt's description of business model, technology, workforce, strategic
positioning, and goals | for inspiring employees & stakeholders
✔✔Mission - ✔✔how firm will achieve vision | product OR customer market focus
✔✔Core Values - ✔✔guiding principles of firm | support company's vision, shape
culture, & reflect company's identity & personality
