Principles of Management C483 WGU Exam practice | 99 questions with 100% correct solutions.

Describe strategic planning - Making decisions about the organization's long-term goals and strategies Describe strategic goals -major target long-term goals that are effective and efficient describe strategy - pattern of actions and resource allocations designed to achieve the goals of the organization. 1. Where will we be active? 2. How will we get there (increase sales or acquire another company)? 3. How will we win the in the marketplace (keep prices low or offer the best service)? 4. how fast will we move in what sequence will we make the changes? 5.How will we obtain financial returns (low cost or premium prices)? *In setting a strategy, managers try to match the organization's skills and resources to the opportunities found in the external environment. Explain what a Core Competency/ Capability means for an organization. - Core Capability: (or competence) when resources are valuable, rare, inimitable, and organized. Something company does especially well relative to its competitors. (EX: Honda small engine) Core competencies typically refers to a set of skills or expertise in some activity rather than physical or financial assets. Porter's 5 Model - Porter's 5 Model is a method used to help managers analyze the competitive environment and adapt to or influence the nature of their competition. Describe Porter's 5 Model and how it is used in the strategic planning process. - 1. understand the competitive environment, organization's must identify competitors. 2. analyze how to compete. 3. new entrants (Netflix took out blockbuster) 4. substitutes and complements (coke for starbucks; starbucks complement is a cake pop) 5. suppliers: switching costs ( fixed costs buyers face when they change suppliers), supply chain management ( managing of the network of facilities and people that obtain materials from outside the organization, transform them into products, and distribute them to customers.) 6. customers: without customers a company wont survive (final customer ex: mcdonalds) (Intermediate customer ex: customer who purchases raw materials or wholesale products before selling them)Explain a SWOT Analysis - 1. SWOT analysis: assessment of the organization's strengths, weaknesses, opportunities, and threats 2. SWOT analysis helps managers summarize the relevant important facts from their external and internal analysis SWOT analysis strengths and weaknesses - -strength and weaknesses: interal recources EX: organization's strengths might include skilled management, positive cash flow, and well-known highly regarded brands. Weakness might be lack of spare production capacity and the absence of reliable suppliers SWOT analysis opportunities and threats - -SWOT analysis helps managers summarize the relevant, important fats from their external and internal analysis. -they can identify the primary and secondary strategic issues their organization faces. The managers then formulate a strategy that will build on the SWOT analysis to take advantage of available opportunities by capitalizing on the organization's strengths, neutralizing its weakness, and countering potential threats. How SWOT analysis helps managers: - -SWOT analysis helps managers summarize the relevant, important fats from their external and internal analysis. -they can identify the primary and secondary strategic issues their organization faces. The managers then formulate a strategy that will build on the SWOT analysis to take advantage of available opportunities by capitalizing on the organization's strengths, neutralizing its weakness, and countering potential threats. Name the 5 types of corporate strategies that organizations use - 1. corportate strategy 2. concentration strategy 3. vertical integration strategy 4. concentric diversification strategy 5. conglomerate diversification strategy