Mgmt 490 Strategic Management Paper
MGMT 490 - STRATEGIC MANAGEMENT
Review Topics for Final Exam
1.
The goal of strategic management. (ch. 1)
Integration of the functional areas of business. (ch. 1)
2.
The three stages of the strategic management. (ch. 1)
3
Stage of strategic management that the firm's internal strengths and weaknesses are determined. (ch. 1)
Stage of strategic management that the firm's long-term objectives are especially important. (ch. 1)
4.
Strategic management stage that corrective actions are taken. (ch. 1)
5.
Examples of activities at the strategy formulation stage of strategic management. (ch. 1)
Examples of activities at the implementation …show more content…
stage of strategic management. (ch. 1)
Examples of activities at the evaluation stage of strategic management. (ch. 1)
6.
The necessity and reason for the evaluation stage of strategic management. (ch. 1)
7.
Components (decisions) of the strategic management model. (ch. 1)
8.
Characteristics of a good objective. (ch. 1)
9.
Which is more likely to influence a firm's performance: an effective strategy formulation and implementation versus competitors' strenghts and weakness. (ch. 1)
10.
Activities of an external audit. (ch. 3)
The first step in performing an external audit. (ch. 3) Competitive analysis
11.
The influce of environmental forces on the firm's performance - e.g., social, political, economic, technological and competitive forces. (ch. 3)
12.
Examples of environmental factors that can influence the firm's performance. (ch. 3)
The influence of a strong dollar versus a weak dollar on the value of U.S. exports. (ch. 3)
Strong-high price and weak
13.
What is a comparative advantage? (examples) (ch. 3)
14.
The I/O approach (i.e., theory) to the competitive advantage of the firm. (ch. 3)
The I/O approach (i.e., theory) to the influence of internal/external factors to the firm's performance. (ch. 3) industrial organization =i/o felt external has a greater effect on success
15.
What is competitive intelligence? (ch. 3) gathering information about your …show more content…
competitors
What are the objectives of competitive intelligence? (ch. 3)
16.
Michael Porter's five competitive forces. (ch. 3) rival among other companies is the most important
According to Michael Porter, which is the most powerful of the five competitive forces. (ch. 3)
17.
What is the effect (on industry competition) of ease of entry into an industry? (ch. 3)
Very intense competition
18.
Examples of the different strategies of integration: backward, forward, and horizonal. (ch. 3) vertical integration- backward or forward
19.
Examples of when it is appropriate for a firm to implement a: backward/forward/horizonatal integration strategy. (ch. 3)
20.
What is an internal strength? (examples) (ch. 4)
21.
What is an internal weakness? (examples) (ch. 4)
22.
What are distinctive competencies? (ch. 4) a technology or something you have or the way you do things; something cannot be easily copied
23.
What is an external opportunity? (examples) (ch. 4) existence of a market segment no one is satisfying; if you can get it first, a consumer need that cannot be satisfied
What is oppornutiy analysis? (ch. 4)
Which function of business conducts opportunity analysis? (ch. 4) analysis is done in the marketing department
24.
What is an external threat? (examples) (ch. 4) new businesses entering, government regulations; strong U.S. dollar
25.
The degree of influence/control on external opportunities and threats by a single firm. (ch. 4) one firm has very little influence, but will have a influence
26.
Financial Decisions - investment, capital budgeting, dividend, financing. (ch. 4)
Investment-put money in the business
Capital- borrowing money 27.
Financial ratios - liquity, profitablity, actvity, growth. (ch. 4)
ROE will be on test- type of profitability ratio 28.
What is value chain analysis? (ch. 4) measure everything you do from raw materials to final product
29.
What are Market Development, Product Development, Marketing Penetration, and Diversification strategies? (ch. 5) Market penetration to increase market shares, using exist product in existing market ;Market Development to target new market segments; Diversification- related or unrelated , new product into new market
Examples of Market Development, Product Development, Marketing Penetration, and Diversification strategies? (ch. 5)
30.
What kind of strategy is retrenchment? (ch. 5) retrenchment-a turnaround strategy; close down some business; fire some employees; make adjustments, but remain in industry
What is a Divestiture strategy. (ch. 5) get out of industry not making money
What is the difference between a retrenchment and divestiture strategy? (ch. 5)
31.
Cost leadership (low cost) versus differentiation strategies. (ch. 5)
Examples of when a firm should adopted a cost leadership (low cost) strategy. (ch. 5) wal-mart
Examples of when a firm should adopted a differentiation strategy.
(ch. 5) customers willing to pay more to get services or products; not trying to be the cheapest; Dillards or JCPenny
32.
What is outsourcing? (ch. 5) all activates you can do in-house send out externally, can still be in the country will be on test
Examples of outsourcing? (ch. 5)
33.
According to BCG matrix : will be on test Boston Consultant Group
What is a cash cow? (ch. 6) high growth firm low/no growth industry
What is a question mark (aka problem child)? (ch. 6) low/no growth firm high growth industry
What is a star? (ch. 6) high growth both firm and industry
What is dog? (ch. 6) low/no growth firm and industry
34.
Example of an appropriate strategy for a business classify as a star? (ch. 6) do both backward and forward integration ensure supply and customers are getting the product
Example of an appropriate strategy for a business classify as a dog? (ch. 6) get out of the business or do horizontal integration- combine or buy with a another come in industry
35.
What is market segmentation? (ch. 8) breaking up of large market different consumers want different
things
What are market segments? (ch. 8)
36.
What is the goal of product positioning? (ch. 8) products different from everyone else
37.
What is the effect of too much debt in the capital structure on stockholders return? (ch. 8) too much debt lowers the ROE b/c you are paying a lot of interest so reduces stockholder returns
38.
If the cost (interest rate) of capital is too high, how can a firm raise needed capital? (ch. 8) issue stocks will be on test
What is a drawback of using only equity to raise capital? (ch. 8) EPS will go down
39.
If a firm incurs a loss during a particular year, what happens to the Retained Earning amount? (ch. 8) net loss will reduce amt. in the retained earning account
40.
How can a firm gain competitive advantage? (ch. 9) by doing almost everything better than everyone else
41.
During the strategy evaluation stage, are corrective actions always needed? (ch. 9)
When are corrective actions needed, and when are they not needed?
Not needed when the strategy works and when there is no change in the internal and external environment no changes in opportunities and threats
42.
What activity is defined as having alternative plans that can be put into effect if certain key events do not occur as expected? (ch. 9)
Plan B is called contingency plan
Review Topics for Final Exam
1.
The goal of strategic management. (ch. 1)
Integration of the functional areas of business. (ch. 1)
2.
The three stages of the strategic management. (ch. 1)
3
Stage of strategic management that the firm's internal strengths and weaknesses are determined. (ch. 1)
Stage of strategic management that the firm's long-term objectives are especially important. (ch. 1)
4.
Strategic management stage that corrective actions are taken. (ch. 1)
5.
Examples of activities at the strategy formulation stage of strategic management. (ch. 1)
Examples of activities at the implementation …show more content…
stage of strategic management. (ch. 1)
Examples of activities at the evaluation stage of strategic management. (ch. 1)
6.
The necessity and reason for the evaluation stage of strategic management. (ch. 1)
7.
Components (decisions) of the strategic management model. (ch. 1)
8.
Characteristics of a good objective. (ch. 1)
9.
Which is more likely to influence a firm's performance: an effective strategy formulation and implementation versus competitors' strenghts and weakness. (ch. 1)
10.
Activities of an external audit. (ch. 3)
The first step in performing an external audit. (ch. 3) Competitive analysis
11.
The influce of environmental forces on the firm's performance - e.g., social, political, economic, technological and competitive forces. (ch. 3)
12.
Examples of environmental factors that can influence the firm's performance. (ch. 3)
The influence of a strong dollar versus a weak dollar on the value of U.S. exports. (ch. 3)
Strong-high price and weak
13.
What is a comparative advantage? (examples) (ch. 3)
14.
The I/O approach (i.e., theory) to the competitive advantage of the firm. (ch. 3)
The I/O approach (i.e., theory) to the influence of internal/external factors to the firm's performance. (ch. 3) industrial organization =i/o felt external has a greater effect on success
15.
What is competitive intelligence? (ch. 3) gathering information about your …show more content…
competitors
What are the objectives of competitive intelligence? (ch. 3)
16.
Michael Porter's five competitive forces. (ch. 3) rival among other companies is the most important
According to Michael Porter, which is the most powerful of the five competitive forces. (ch. 3)
17.
What is the effect (on industry competition) of ease of entry into an industry? (ch. 3)
Very intense competition
18.
Examples of the different strategies of integration: backward, forward, and horizonal. (ch. 3) vertical integration- backward or forward
19.
Examples of when it is appropriate for a firm to implement a: backward/forward/horizonatal integration strategy. (ch. 3)
20.
What is an internal strength? (examples) (ch. 4)
21.
What is an internal weakness? (examples) (ch. 4)
22.
What are distinctive competencies? (ch. 4) a technology or something you have or the way you do things; something cannot be easily copied
23.
What is an external opportunity? (examples) (ch. 4) existence of a market segment no one is satisfying; if you can get it first, a consumer need that cannot be satisfied
What is oppornutiy analysis? (ch. 4)
Which function of business conducts opportunity analysis? (ch. 4) analysis is done in the marketing department
24.
What is an external threat? (examples) (ch. 4) new businesses entering, government regulations; strong U.S. dollar
25.
The degree of influence/control on external opportunities and threats by a single firm. (ch. 4) one firm has very little influence, but will have a influence
26.
Financial Decisions - investment, capital budgeting, dividend, financing. (ch. 4)
Investment-put money in the business
Capital- borrowing money 27.
Financial ratios - liquity, profitablity, actvity, growth. (ch. 4)
ROE will be on test- type of profitability ratio 28.
What is value chain analysis? (ch. 4) measure everything you do from raw materials to final product
29.
What are Market Development, Product Development, Marketing Penetration, and Diversification strategies? (ch. 5) Market penetration to increase market shares, using exist product in existing market ;Market Development to target new market segments; Diversification- related or unrelated , new product into new market
Examples of Market Development, Product Development, Marketing Penetration, and Diversification strategies? (ch. 5)
30.
What kind of strategy is retrenchment? (ch. 5) retrenchment-a turnaround strategy; close down some business; fire some employees; make adjustments, but remain in industry
What is a Divestiture strategy. (ch. 5) get out of industry not making money
What is the difference between a retrenchment and divestiture strategy? (ch. 5)
31.
Cost leadership (low cost) versus differentiation strategies. (ch. 5)
Examples of when a firm should adopted a cost leadership (low cost) strategy. (ch. 5) wal-mart
Examples of when a firm should adopted a differentiation strategy.
(ch. 5) customers willing to pay more to get services or products; not trying to be the cheapest; Dillards or JCPenny
32.
What is outsourcing? (ch. 5) all activates you can do in-house send out externally, can still be in the country will be on test
Examples of outsourcing? (ch. 5)
33.
According to BCG matrix : will be on test Boston Consultant Group
What is a cash cow? (ch. 6) high growth firm low/no growth industry
What is a question mark (aka problem child)? (ch. 6) low/no growth firm high growth industry
What is a star? (ch. 6) high growth both firm and industry
What is dog? (ch. 6) low/no growth firm and industry
34.
Example of an appropriate strategy for a business classify as a star? (ch. 6) do both backward and forward integration ensure supply and customers are getting the product
Example of an appropriate strategy for a business classify as a dog? (ch. 6) get out of the business or do horizontal integration- combine or buy with a another come in industry
35.
What is market segmentation? (ch. 8) breaking up of large market different consumers want different
things
What are market segments? (ch. 8)
36.
What is the goal of product positioning? (ch. 8) products different from everyone else
37.
What is the effect of too much debt in the capital structure on stockholders return? (ch. 8) too much debt lowers the ROE b/c you are paying a lot of interest so reduces stockholder returns
38.
If the cost (interest rate) of capital is too high, how can a firm raise needed capital? (ch. 8) issue stocks will be on test
What is a drawback of using only equity to raise capital? (ch. 8) EPS will go down
39.
If a firm incurs a loss during a particular year, what happens to the Retained Earning amount? (ch. 8) net loss will reduce amt. in the retained earning account
40.
How can a firm gain competitive advantage? (ch. 9) by doing almost everything better than everyone else
41.
During the strategy evaluation stage, are corrective actions always needed? (ch. 9)
When are corrective actions needed, and when are they not needed?
Not needed when the strategy works and when there is no change in the internal and external environment no changes in opportunities and threats
42.
What activity is defined as having alternative plans that can be put into effect if certain key events do not occur as expected? (ch. 9)
Plan B is called contingency plan