Strategic Management Study Guide
STRATEGIC MANAGEMENT TEST 2 (Chapters 3, 4, and 6): STUDY GUIDE •Know definitions and be utilityservicetelling to confess examples of concepts •Test procure be multiple dainty, 45-50 items •Adduce scantron subterfuge and #2 pencil Additional unconditional ward con-aggravate instrument availservicetelling including an interactive rally from the publisher at: http://highered. mcgraw-hill. com/sites/0078029317/student_view0/chapter1/chapter_quiz. html Chapter 3: Assessing the Interior Environment •What is prize fetter resolution? How is it acquisitiontelling ce comprehension competitive utilitys?
Strategic resolution of an construction that truths prize-creating influenceivities. It is acquisitiontelling ce comprehension the architecture blocks of competitive utilitys. •In the prize fetter, what are the 5 earliest influenceivities? Which 4 influenceivities are living influenceivities? Earliest- inbound logistics, operations, outbound logistics, dispenseing and sales, and utility. Living- public admininistration, ethnical media government, technology crop, and procurement. •Relating to earliest influenceivities, what favoring influenceivities are associated with inbound logistics? Operations? Outbound logistics?
Marketing and sales? Utility? Inbound logistics- receiving, storing, and distributing inputs of a issue. Operations- every influenceivities associated with transforming inputs into the last issue cem. Outbound logistics- collecting, storing, and distributing the issue or utility to buyers. Dispenseing and sales- influenceivities associated with purchases of issues and utilitys by object truthrs and the inducements truthd to end them to gain purchases. Utility- influenceions associated with providing utility to augment or live the prize of the issue. •What is a Just-in-duration register scheme? were planned to end fertile inbound logistics. Parts and handies attribute merely hours antecedently they are scarcityed. •Relating to living influenceivities, what favoring influenceivities are associated with procurement? Technology crop? HR government? Public government? Procurement- purchasing inputs truthd in the sturdy’s prize fetter, including exposed materials, eatables, and other consumservicetelling items as polite-behaved-mannered-behaved-behaved-behaved as wealth such as machinery, striveatory equipment, duty equipment, and architectures. Technology crop- crop of fantastic comprehension that is applied to the sturdy’s operations.
HR government- influenceivities implicated in the recruiting, hiring, trailing, crop, and expiation of every types of personnel. Public government- public government, planning, finance, accounting, legitimate and government affairs, virtue government, and referable attributtelling attributableice schemes: influenceivities that living the unimpaired prize fetter and referable attributtelling attributtelling attributtelling indivisible influenceivities. •How has Walgreen’s truthd referable attributtelling attributableice schemes to be a springs of competitive utility? Introduction of a computer naturalized recipe government scheme- automates telephsingle refills, provision to provision recipe transfers, and reftruth reordering.
Also gives referable attributtelling attributableice on reftruth interactions and unconditionals up pharmacists from negotiative tasks to exercise further duration to enduring counseling. •What are the brace flattens of interrelationships unmoulded prize-fetter influenceivities? 1. Interrelationships unmoulded influenceivities amid the sturdy 2. Interrelationships unmoulded influenceivities amid the sturdy and other stakeholders. •What is media-naturalized sight of the sturdy? Perceptions that sturdys’ competitive utilitys are due to their objectowment of strategic instrument that are precious, noble, expensive to mock, and expensive to minister. What are the 3 types of sturdy instrument? Real, Inappreciable, and Constructional Capabilities. •What are the 4 kinds of real instrument? Financial, material, technological, and constructional. •What are the 3 kinds of inreal instrument, Ethnical, Alteration and Creativity, and Temperament. •What examples of constructional capabilities? Ex. Uncollected customer utility. Laudable issue crop capabilities, innovativeness of issues and utilitys. Cece to employ, motivate, and keep ethnical cardinal. What are the foul-mouthed criteria that a sturdy’s instrument must occupy to live a stayservicetelling utility? 1. Media must be valuservicetelling in the meaning that it exploits opportunities and/or neutralizes threats in the sturdy’s environment. 2. It must be noble unmoulded the sturdy’s ordinary and undeveloped adversarys. 3. It must be arduous to mock. 4. Must accept no strategically equiponderant ministers. •How can the aftercited foul-mouthed media characteristics aid stay a competitive utility naturalized on inimitability: material estimableness, pathwayfashion dependency, causal ambiguity, and gregarious perplexity? 1.
Inherently arduous to delineation. 2. Instrument are wanting owing they were adventitious through a estimable course of uniformts. 3. Expensive to mock owing adversary canreferable attributtelling designate what the media is and/or how it can be re-created. 4. Expensive to mock owing the gregarious engineering required is further the faculty of adversarys, including interindivisible kindred unmoulded manipulaters, constructional refinement, and temperament with suppliers and customers. •Substitutvalidity can capture which brace cems? 1. Minister a congruous media that enables it to educe and as-welll the resembling diplomacy. . Very irreferring-to sturdy instrument can beseem strategic ministers. • See extend 3. 7 – what are the implications ce competitiveness naturalized on disagreeing characteristics of a media or faculty? The short precious, short noble, easier to mock, further ministers, the short competitive utility. •What are the foul-mouthed factors that aid disencumbered-up the quantity to which employees procure be utilityservicetelling to earn a proportionally haughty flatten of a sturdy’s proceeds? 1. Employee bargaining rule. 2. Employee resuscitation requires. 3. Employee debouchure requires. 4. Manipulater Bargaining Rule. What are the brace approaches to truth when evaluating a sturdy’s achievement? Financial regardn resolution and preamble a expansive stakeholder sight. •What is financial regard resolution? How can unvarnished comparisons, diligence thread comparisons, and adversary comparisons each service as acquisitiontelling regard points? 1. Technique ce measuring the achievement of a sturdy according to its et subterfuge, proceeds declaration, and dispense valuation. 2. Gives a media of evaluating trends. 3. Assesses referring-to achievement. 4. Gain valuservicetelling insights into a sturdy’s financial and competitive aspect. What is the etd scorecard? Why is it acquisitionable? a manner of evaluating a sturdy’s achievement using achievement appraises from the customers, interior alteration, and scholarship, and financial perspectives. Gives manipulaters with a fixed, beside inclusive resight of the calling (operations appraises that restraintce the restraintthcoming financial achievement). •What are the foul-mouthed explanation perspectives of the etd scorecard? 1. Customer perspective- appraises of sturdy achievement that denote how polite-behaved-mannered-behaved-behaved-behaved sturdys are satisfying customer’s expectations. 2.
Interior calling perspective- appraises of sturdy achievement that denote how polite-behaved-mannered-behaved-behaved-behaved sturdys interior coursees, decisions, and influenceions are contributing to customer content. 3. Alteration and scholarship perspective- appraises of a sturdy achievement that denote how polite-behaved-mannered-behaved-behaved-behaved sturdys are changing their issue and utility extendings to accommodate to changes in the interior and manifest environments. 4. Financial perspective- appraise of sturdy’s financial achievement that denote how polite-behaved-mannered-behaved-behaved-behaved diplomacy, as-welllation and influenceion are contributing bottom-thread proficiency. •What are the limitations of the etd scorecard?
Lack of a disencumbered diplomacy, scant or petty magistreprimand sponsorship, as-well abundantly argument on financial appraises rather than nonfinancial appraises, meagre postulates on express achievement, impertinent links of scorecard appraises to expiation, inconsistent or impertinent orderinology. Chapter 4: Recognizing a Sturdy’s Psychical Wealth: Moving Further a Sturdy’s Real Instrument •What is the comprehension administration? An administration where opulence is constituted through the able government of comprehension achievementers instead of by the fertile regulate of material and financial wealth. How has the argument shifted betwixt inreal and real instrument as a fruit of changes in the competitive environment? Shifted from real instrument such as attribute, equipment, and principal. Efforts were further plained amid the fertile everyocation of strive and cardinal. Now psychical and referable attributtelling attributableice coursees constitute most of the prize ce sturdys in bulky utility industries. •What is the dispense prize of a sturdy? What is the capacity prize of a sturdy? What does the dissonance betwixt the brace prizes resemble? In what types of sturdys does this dissonance tobject to be the exaltedest?
Dispense prize- the prize of a portion-out of its dishonorable minister durations the estimate of portion-outs uncollected. Capacity prize- is chiefly a appraise of the prize of its real instrument: aggregate wealth- aggregate liabilities. The dissonance betwixt the brace resembles the sturdy’s psychical cardinal ( a appraise of the sturdy’s inreal wealth). In sturdys where comprehension and the government of comprehension achievementers are referring-toly main contributors to educeing issues and utilitys and material instrument are short censorious, the regard of dispense to capacity prize nurtures to be abundantly haughtyer. •What is psychical cardinal and how can it be extensiond?
Psychical cardinal= dispense prize of sturdy-capacity prize of the sturdy. To extension: dispose and leverage ethnical cardinal ablely through mechanisms that constitute issues and utilitys of prize aggravate duration. •What is ethnical cardinal? Gregarious cardinal? Open comprehension? Understood comprehension? Ethnical cardinal- the indivisible capabilities, comprehension, aptitudes, and experiment of a sodality’s employees and manipulaters. Gregarious cardinal- the netachievement of friendships betwixt telling populace twain amid and without the construction. Open comprehension- comprehension that is codified, documented, amply reproduced, and distantly nice.
Understood comprehension- comprehension that is in the minds of employees and is naturalized on their experiments and backgrounds. •How is fantastic comprehension constituted? Through the constant interaction of open and understood comprehension. •How has employee completeegiance to the sodality expediteive referring-to to completeegiance to the avowal? Comprehension achievementers attribute avowalal crop and indivisible amplification aggravatehead sodality completeegiance. •What is a principal censorious trudge in the course of of architecture psychical cardinal? What are the other coursees constructions truth to build ethnical cardinal?
Hiring telling indivisibles, educeing them to drift their bountiful undeveloped to maximize their articulation contributions. Keep the best and brightest. •Why do frequent companies truth employee referrals ce fantastic employs? Incentive bonuses remunerated to the referrers are cheaper than what they would accept to constant headhunters to furnish candidates, plus the ordinary employees would furnish good-tempered-tempered candidates owing they are putting their temperament on the thread ce them. •What strategies are truthd to educe ethnical cardinal? Encouraging spiritless involvement, Transferring comprehension, monitoring expedite and crop, and evaluating ethnical cardinal. How as the weight of evaluating ethnical cardinal expediteive in fresh years? Collaboration and intercommunity are animate to constructional achievement. Indivisibles must achievement indiscriminately. Traditional departed schemes evaluate achievement from a unmarried perspective. •What is 360 grade feedback? Eminents, plain reports, colleagues, and uniarrange manifest and interior customers reprimand a person’s achievement. •What are the 6 services of dissonance in a sturdy’s achievementforce? 1. Require argument- sturdys with further able government in dissonance procure accept a require utility aggravate those that are referable attributtelling attributable. 2.
Media merit argument- sturdys with laudable temperaments as prospective employers ce minorities procure accept an utility in the emulation ce culmination faculty. 3. Dispenseing argument- ce multinational sturdys this procure be acquisitionable. 4. Creativity argument- short argument on regularity to threads of the departed and dissonance of perspectives procure amend the flatten of creativity. 5. Problem solving argument- populace with irreferring-to perspectives accept a emend shot at solving suspend problems than those who every fancy resembling. 6. Constructional flexibility argument- senior flexibility administers media emend reactions to environmental changes. What is netachievement resolution? Closure kindredhips? Bridging kindredhips? Resolution of the design of gregarious interactions unmoulded indivisibles. •How can able gregarious networks be utilityous to an indivisible’s success? Private referable attributtelling attributableice now aidful. Access to divers aptitude cemals. Rule. •What is groupthink? – nurtureency in an construction ce indivisibles referable attributtelling attributtelling attributtelling to topic portion-outd beliefts. •What are psychical wealth hues? What influenceions can be capturen to manipulate psychical wealth? Inreal wealth confessed by a sturdy in the cems of patents, delineationrights, trafficmarks, or traffic secrets. What are dynamic capabilities? The cece to meaning and arrest fantastic opportunities, generates fantastic comprehension, and reconfigure corporeal wealth and capabilities. Chapter 6: Municipal-Flatten Diplomacy: Creating Prize Through Shifting •What is municipal-flatten diplomacy? What brace cognate issues does it harangue? a diplomacy that focuses on gaining crave-order enrichment, proceeds, and dispense prize through managing operations in multiple callinges. Merits and incorporaters. •How is cognate shifting irreferring-to than uncognate shifting? What are the undeveloped services of each?
Cognate shifting- a sturdy entering a irreferring-to calling in which it can service from leveraging heart competencies, sharing influenceivities, or architecture dispense rule. Uncognate shifting- a sturdy entering a irreferring-to calling that has unapplicable tasteless interaction with other callinges of a sturdy. •Be intimate with the classifications of Extend 6. 2 3M was using aggravated rebates to retailers, which pushed them into a “monopolistic aspect” and courts ordered 3M to constant 68. 5 pet dollars to another tape sodality. •In cognate shifting, what is meant by economies of drift?
Require savings from leveraging heart competencies, sharing influenceivities, or architecture dispense rule. •What is a heart talents? What are the three criteria ce assessing if a heart talents constitutes prize? Sturdy’s strategic instrument that image the political scholarship in the construction. 1. Must augment competitive utility by creating eminent customer prize. 2. Irreferring-to callinges in the confirmation must be congruous in at last single main fashion cognate to the heart sufficiency. 3. Must be arduous ce adversarys to mock or furnish ministers ce. •What are sharing influenceivities?
What are the brace constantoffs associated with sharing influenceivities. -Having influenceivities of brace or further callinges prize fetters dsingle by single of the callinges. -1. Require savings -2. Enrichment augmentment •In cognate shifting, what is dispense rule? Sturdy’s cece to acquisition through restricting or regulateling minister to a dispense or coordinating with other sturdys to narrow boarding. •What is pooled negotiating rule? the proficiency in bargaining aspect referring-to to customers and suppliers. •What is perpendicular integration, in its associated risks and services? an xpansion or extension of the sturdy by integrating anterior or achievementive issueion coursees (occurs when a sturdy beseems its confess supplier or distributer). Pros- guard minister of exposed materials or arrangement channels. Protection and regulate aggravate assests and utilitys required to amount and hand. Access to fantastic calling opportunities and fantastic cems of technology. Eliminating the scarcity to traffic with a distant multiformity of suppliers and distributors. Cons- requires and expenses associated with extensiond aggravatehead and cardinal expenditures. Loss of flexibility fruiting from bulky boardings.
Problems associated with unbalanced capacities acrave the prize fetter. Additional negotiative requires associated with managing a further suspend cemal of influenceivities. •What 5 issues should be observeed in making perpendicular integration decisions? 1. Is the sodality kind with the virtue of the prize that its extend suppliers and distributors are providing? 2. Are there influenceivities in the diligence prize fetter extendly existence outsourced or consummated inconsequently by others that are a viservicetelling spring of restraintthcoming proceeds? 3. Is there a haughty flatten of stvalidity in the ask-ce ce the construction’s issues? . Does the sodality accept the expedient competencies to consummate the perpendicular integration strategies? 5. Procure the perpendicular integration example accept undeveloped disclaiming impacts on the sturdy’s stakeholders? •What is the duty require perspective? A perspective that the dainty of a duty’s governance construction such as perpendicular integration or dispense duty, is influenced by duty requires, including, inquiry, negotiating, contracting, monitoring, and enforcement requires, associated with each dainty. •What is uncognate shifting? What is a parenting utility?
A sturdy entering a irreferring-to calling that has unapplicable tasteless interaction with other callinges of a sturdy. Parenting utility- the indisputable contributions of the corporeprimand duty to a fantastic calling as a fruit of expertise and living supposing and referable attributtelling attributtelling attributtelling as a fruit of strong changes in wealth, cardinal construction, or government. •What is restructuring? What are the three types of restructuring? The intrusion of the corporeprimand duty in a fantastic calling that strongly changes wealth, cardinal construction and government. 1. Asformal restructuring 2. Cardinal restructuring 3. Government restructuring What is portfolio government?
Manner of assessing the competitive aspect of a portfolio of callinges amid a confirmation, suggesting strategic alternatives ce each calling, and identifying priorities ce the everyocation of instrument resisting the callinges. •What is the Boston Consulting Group’s (BCG) enlargement/portion-out matrix? What are the 4 quadrants in the matrix? What are the suggested strategies associated with each of the quadrants? What are the limitations of the BCG matrix? Each of the sturdy’s strategic calling units is plotted on a brace-dimensional grid in which the axes are applicable dispense portion-out and diligence enlargement reprimand. 1.
Stars-competing in haughty enlargement industries with haughty dispense portion-outs, crave order enlargement undeveloped and should live to assent-to strong boarding capitaling. 2. Topic marks- competing in haughty enlargement industries with beside accept flimsy dispense portion-out, instrument should be invested to augment their competitive aspects. 3. Capital cows- accept haughty dispense portion-outs in reprieved enlargement industries. Accept scant crave ooze undeveloped, beside resemble a spring of ordinary capital flows to capital boardings into starts and topic marks. 4. Dogs- accept flimsy dispense portion-outs in reprieved enlargement industries, flimsy aspects and scant undeveloped.
Most recommobject they beseem divested. Limitations of BCG matrix- 1. the merely collate naturalized on brace bulk. 2. Sight them as a stand-alsingle existence, ignoring dishonorable calling practices and prize creating influenceivities that may repose word ce synergies resisting calling units. 3. The course beseems bulkyly unimpassioned, substituting an aggravately simplified graphical design ce the main contributions of the CEO or other manipulaters experiment. •What are the three earliest media by which a sturdy can alter? 1. Through merits or incorporaters 2.
Pool the instrument of other companies with their media disesteemed, commmerely knconfess as a articulation-chance or strategic everyiance. 3. Alter into fantastic issues, dispenses, and technologies through interior crop. •What are the services and undeveloped of incorporaters and merits? 1. A media of earning valuservicetelling instrument that can aid an construction amplify its issue extendings and utilitys 2. Can give the convenience ce sturdys to compass the three disesteemeds of synergy—leveraging heart competencies, sharing influenceivities, and architecture dispense rule. 3. Can administer to conjunction amid an diligence and can cece other players to incorporate.
Cons- competing sturdys can frequently mock any utilitys realized from the M&A. there can be cultural issues that may convict the adapted services from the objecteavors. •What is a revelation? The debouchure of a calling from a sturdy’s portfolio. •What is a strategic everyiance? Articulation chance? How do they disagree? What are their undeveloped utilitys and downsides? Strategic everyiance- a cooperative kindredhip betwixt brace or further sturdys. Articulation chance- fantastic entities cemed amid a strategic everyiance in which brace or further sturdys, the parents, give equity to cem the fantastic legitimate existence.
A strategic everyiance is a cooperative kindredhip. A articulation chance is a specific condition of everyiances where twain sturdys give equity to cem a fantastic legitimate existence. Pros- Reducing manufacturing or other requires in the prize fetter. Educeing and diffusing fantastic technologies. Cons- frequent trip to confront expectations. Without adapted participator, a sturdy should never obbenefit it. Unapplicable circumspection is frequently absorbed to nurturing the suspend achievementing kindredhips and interindivisible connections that adduce coincidently the participatoring constructions. •What is interior crop?
What are its undeveloped downsides? -Entering a fantastic calling through boarding in fantastic facilities, frequently named corporeprimand entrepreneurship and fantastic chance crop. -It may be duration consuming, sturdys may cefeit the services of expedite that enlargement through incorporaters and merits can give. •How can manipulaterial motives erode prize romance? They may frequently influence in their confess self-interests (CEOS). “enlargement ce enlargement’s end”, extravagant conceit, and the romance of a distant multiformity of antitakeaggravate strategy. •What is meant by enlargement ce enlargement’s end? Conceit? Manipulater’s influenceions to extend the bulk of their sturdys referable attributtelling attributtelling attributtelling to extension crave-order acquisitionability, beside to divide manipulaterial self-interest. -Manager’s influenceions to cast their sturdy’s strategies to service their ungenerous interests rather than to maximize crave-order portion-outholder prize. •What are the antitakeaggravate strategy of greenmail, the hopeful parachute, and envenom pill? Greenmail- a constantment by a sturdy to a antagonistic face ce the sturdy’s minister at a reward, made when the sturdy’s government feels that the antagonistic face is about to gain a nurtureer extend. (manner of love a bonus)