MBA 502 Quiz 4
What is strategy?
pattern of decisions managers make to realize defined goals
What is a mission statement?
a broad declaration of purpose of an organization
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
What is a SWOT analysis?
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
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
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
What are corporate level strategies?
what industry or market will business compete in
What is vertical integration?
business buys/ acquires all levels of supply chain
What is diversification?
company expands in multiple industries
What is related diversification?
company expands in a market that is similar to the existing company ex: Yum Foods- Pizza Hut, Taco Bell, KFC
What is unrelated diversification?
risk is spread out by investing/ acquiring businesses in totally different industries ex: GE
What are the 3 different levels of corporate level strategies?
What are business related strategies?
How will I beat my competition
What are the two different business level strategies?
low cost- emphasis low cost market
differentiation- target specific customer base/ market
What are functional level strategies?
improving the ability of an organization's departments to create value for the firm
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
Responsiveness to customer needs- modify based upon feedback
What factors affect organizational structure?
MBA 502 Quiz 4
MBA 502 Quiz 4 Management