mgmt test #2 Section #3

  1. strategic planning
    a set of procedures for making decisions about the organization's long term survival
  2. strategic goals
    major targets or end results relating to the organization's long-term survival, value, or growth
  3. strategy
    a pattern of actions and resources allocations designed to achieve the organization's goals
  4. step 1 of the strategic management process
    establishment of mission, vision, goals
  5. mission
    organizations basic purpose and scope of operations
  6. vision
    the strategic vision describes the long-term direction and strategic intent of the company
  7. step 2 of strategic management process
    analysis of external opportunities and threats (accurate evaluation of the competitive environment and macroenvironment)
  8. stakeholders
    groups and individuals who affect and affected by the achievement of the organization's mission, vision, goals and strategies
  9. step 3 of strategic management process
    analysis of internal strengths and weaknesses (core competence- unique skill and/or knowledge over competitors, and benchmarking)
  10. want goods/services to be (4 things)
    • valuable
    • rare
    • difficult to imitate
    • organize
  11. step 4 of strategic management process
    SWOT analysis (also look at corporate strategy, business strategy, BCG matrix)
  12. Corporate strategy
    identifies a set of businesses, markets or industries in which an organization competes and the distribution of resources among those entities
  13. types of corporate strategies
    • concentration
    • vertical integration
    • concentric diversification
    • conglomerate diversification
  14. concentration
    strategy employed for an organization that operates a single business and competes in a single industry
  15. vertical integration
    acquisition or development of new businesses that produce parts or components of the organization's products
  16. concentric diversification
    strategy used to add new businesses that product related products or are involved in related markets and activities
  17. Conglomerate diversification
    strategy used to add new businesses that product unrelated products or are involved in unrelated markets and activities
    • stars (high growth/strong competition)
    • question marks (high growth, weak competition)
    • Cash Cows (low growth, strong competition, funds other things)
    • Dogs (low growth, weak competition)
  19. business strategy (3 types)
    • describes the major actions by which a business competes in a particular market
    • 3 types: low-cost strategy, differentiation strategy, functional strategy
  20. step 5 of strategic management process
    implementation- define strategic risk, organization capabilities, develop agenda, create a plan
  21. step 6 of strategic management process
    strategic control (system designed to support managers in evaluating the organization's progress regarding its strategy and when problems exists correcting them)
  22. ethics
    system of rules that governs the ordering of values, beliefs about what is right and what is wrong, good or bad, tells us what we ought to do- moral principals/values
  23. ethical issues
    situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong
  24. business ethics
    moral principals and standards that guide behavior in the business world
Card Set
mgmt test #2 Section #3
mgmt test #2 Section #3