MBA 502 Quiz 4

  1. What is strategy?
    pattern of decisions managers make to realize defined goals
  2. What is a mission statement?
    a broad declaration of purpose of an organization
  3. What makes a good mission statement?
    • -it will identify market/ industry that company competes in¬†
    • -state what makes the company different from competition
    • -it's brief and inspiring
  4. What is a SWOT analysis?
    • Strengths
    • Weaknesses
    • Opportunities
    • Threats
  5. What makes up the Five Forces Model to identify threats?
    • 1.Level of Rivalry-creates competition with price
    • 2.Potential for Entry-ease of entering the market
    • 3.Power of Suppliers-having multiple sources for suppliers is better for business
    • 4.Power of Buyers- fewer buyers the more the company has to compete to provide for buyer
    • 5.Substitutes- the extent to which your product is similar to others
  6. Strategy Implementation: What are the time horizon for plans?
    • Long-term- 5 or more years
    • Intermediate term- 1 to 5 years
    • Short term- up to 1 year
    • Rolling Plans- constantly being updated
  7. What are the 3 types of plans?
    • Standing plans- placed indefinitely
    • Single use plans- non program use, one time use developed to address unique
    • Scenerio plan- generate hypothetical situations; imagine what could happen
  8. What are corporate level strategies?
    what industry or market will business compete in
  9. What is vertical integration?
    business buys/ acquires all levels of supply chain
  10. What is diversification?
    company expands in multiple industries
  11. What is related diversification?
    company expands in a market that is similar to the existing company ex: Yum Foods- Pizza Hut, Taco Bell, KFC
  12. What is unrelated diversification?
    risk is spread out by investing/ acquiring businesses in totally different industries ex: GE
  13. What are the 3 different levels of corporate level strategies?
    • business concentration
    • diversification
    • international strategy
  14. What are business related strategies?
    How will I beat my competition
  15. What are the two different business level strategies?
    • low cost- emphasis low cost market
    • differentiation- target specific customer base/ market
  16. What are functional level strategies?
    improving the ability of an organization's departments to create value for the firm
  17. What are the 4 criteria to add value to an organization in functional level strategies?
    • Efficiency-speed or delivery of product or service
    • Quality- performance or reliability
    • Innovation
    • Responsiveness to customer needs- modify based upon feedback
  18. What factors affect organizational structure?
    • the environment
    • Strategy
    • Technology
Card Set
MBA 502 Quiz 4
MBA 502 Quiz 4 Management