3 factors that effect planning of organization correct answer: 1) organization level (more heirarchy better with more stability)
2) degree of
... [Show More] uncertainty (more uncertain, shorter planning horizon)
3) length of future commitments (planning horizon should be as long as length of longest commitment by management
4 functions of management correct answer: 1) planning: business goals
2) organizing: allocating resources
3) leading: coordinating and directing
4) controlling: observe and analyze metrics to ensure completion of task
4 types of plans correct answer: 1) strategic: broad plans with missions and goals
2) functional: related to areas of biz that support strategic plans
3) operational/tactical: narrow focus of specific activities
4) contingency: handles risks and what-ifs
business strategy correct answer: Goal directed actions to achieve superior performance and develop competitive advantage
creating competitive advantage correct answer: 1) cost leadership: underprice competition but retain higher profit margin
2) differentiation: charge higher premium than competitors for better value
3) focus (segmentation): market niches -- goes well with differentiation
competitive parity correct answer: When 2 or more firms in the same industry perform at the same level
firm's business model correct answer: Results of prior choices processes and relationships that are unique to the firm that help explain performance along with strategy
components of a business model correct answer: 1) markets service served: selection of markets firm chooses to compete in
2) firm infrastructure: development of core competencies to create competitive advantage
3) economic model and how revenues are generated and sources of cost
core competencies correct answer: Unique capabilities and resources that enable the firm to deliver and support a value proposition to its customer
activity map correct answer: Diagnostic tool that can be used to understand how an organization connects its value prop to the activities that enable the organization to create a competitive advantage
- Darker circles represent foundations of the business model
- Lighter circler show how strategy is implemented through clusters of tightly linked activities
- Useful for strengthening strategic fit and assessing source and strength of competitive advantage
levels of strategy correct answer: 1) corporate level strategy: what businesses company will vest in and what they will do + sets grand strategies
2) business unit level strategy: competitive strategy is developed (small firm -- biz and corp function as one // large firm -- each of biz units develop their own buisness unit level strategy)
3) functional level strategy: activities of different functional areas to help achieve overall biz strategy [Show Less]