MGMT 309 Exam 2 - Questions and Answers Scope Specifies the range of markets in which an organization will compete Resource Deployment How a firm
... [Show More] distributes its resources across the areas in which it competes Levels of Strategy Business-level strategy Corporate-level strategy Business-level Strategy The set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market Corporate-level Strategy The set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets Strategy Formulation Is the set of processes involved in creating or determining the strategies of the organization (focuses on the content of strategies) Strategy Implementation Is the methods of which strategies are executed within the organization (focuses on the process which achieve strategies) Deliberate Strategy -is a chosen plan of action implemented to support specific goals -rational systematic and planned Emergent Strategies -is a developed pattern of actions in the absence of mission and goals or despite of mission and goals -(restrategizing and reactant to something that has happened) SWOT S: Strengths W: Weaknesses O: Opportunities T: Threats SWOT analysis -used to formulate strategies that support the mission -internal analysis: strengths (distinctive competition) & weaknesses -external analysis: opportunities & threats What makes a good strategy? -supports the mission -exploits opportunities & strengths -neutralizes threats -avoids weaknesses Organizational Strengths skills and capabilities enabling an organization to conceive of and implement its strategies Common Strength a skill or capability held by numerous competing firms Competitive parity a large number of competing firms can implement the same strategy Strategic Imitation duplicating another's competence into a valuable strategy Sustained competitive advantage exists after all attempts at strategic imitation have ceased -other organizations have tried but they don't do it as well as you Organizational weaknesses are skills and capabilities that do not enable (and may limit) an organization to choose and implement strategies that support its mission What are the two ways to address organizational weaknesses? 1. invest to obtain strengths 2. modify mission Competitive Disadvantage exists when a firm is not implementing valuable strategies implemented in competing firms Organizational Opportunities areas in the environment that, if exploited, may generate higher performance Organizational Threats areas in the environment that increase the difficulty of an organization's achieving high performance What are the three approaches to formulating business-level strategy? -Porter's Generic Strategies -The Miles and Snow Typology -Product Life Cycle Strategies Porter's Generic Strategies -differentiation strategy -overall cost leadership strategy -focus strategy Differentiation Strategy (Porter's) -seeks to distinguish itself from competitors through the quality of its products and services -product or service customers are willing to pay more for (perceived value) -(ex Rolls Royce) Overall cost leadership strategy (Porter's) -seeks to gain a competitive advantage by reducing its costs below competing firms -(ex Amazon putting bookstore out of business) Focus Strategy (Porter's) -concentrates on a specific regional market, product line, or group of buyers -can have a differentiation focus (setting products apart) or an overall cost leadership focus (selling products cheaper than competitors) -(ex HEB only in TX) The Myles and Snow Typology -prospector strategy -defender strategy -analyzer strategy -reactor strategy Prospector Strategy (Miles/Snow) -encourages creativity and flexibility and os often decentralized (ex Google) -is a highly innovative firm that is constantly seeking out new markets ad new opportunities and is oriented toward growth and risk taking Defender Strategy (Miles/Snow) [Show Less]