WGU C483 Principles of Management
Latest 2022 Already Passed
Describe strategic planning ✔✔Making decisions about the organization's long-term goals and
strategies
Describe strategic goals ✔✔major target long-term goals that are effective and efficient
describe strategy ✔✔pattern of actions and resource allocations designed to achieve the goals of
the organization. 1. Where will we be active? 2. How will we get there (increase sales or acquire
another company)? 3. How will we win the in the marketplace (keep prices low or offer the best
service)? 4. how fast will we move in what sequence will we make the changes? 5.How will we
obtain financial returns (low cost or premium prices)? *In setting a strategy, managers try to match
the organization's skills and resources to the opportunities found in the external environment.
Explain what a Core Competency/ Capability means for an organization. ✔✔Core Capability: (or
competence) when resources are valuable, rare, inimitable, and organized. Something company
does especially well relative to its competitors. (EX: Honda small engine) Core competencies
typically refers to a set of skills or expertise in some activity rather than physical or financial assets.
Porter's 5 Model ✔✔Porter's 5 Model is a method used to help managers analyze the competitive
environment and adapt to or influence the nature of their competition.
Describe Porter's 5 Model and how it is used in the strategic planning process. ✔✔1. understand
the competitive environment, organization's must identify competitors.
2. analyze how to compete.
3. new entrants (Netflix took out blockbuster)
4. substitutes and complements (coke for starbucks; starbucks complement is a cake pop) 5.
suppliers: switching costs ( fixed costs buyers face when they change suppliers), supply chain
,management ( managing of the network of facilities and people that obtain materials from outside
the organization, transform them into products, and distribute them to customers.)
6. customers: without customers a company wont survive (final customer ex: mcdonalds)
(Intermediate customer ex: customer who purchases raw materials or wholesale products before
selling them)
Explain a SWOT Analysis ✔✔1. SWOT analysis: assessment of the organization's strengths,
weaknesses, opportunities, and threats
2. SWOT analysis helps managers summarize the relevant important facts from their external and
internal analysis
SWOT analysis strengths and weaknesses ✔✔-strength and weaknesses: interal recources
EX: organization's strengths might include skilled management, positive cash flow, and well-
known highly regarded brands.
Weakness might be lack of spare production capacity and the absence of reliable suppliers
SWOT analysis opportunities and threats ✔✔-SWOT analysis helps managers summarize the
relevant, important fats from their external and internal analysis.
-they can identify the primary and secondary strategic issues their organization faces. The
managers then formulate a strategy that will build on the SWOT analysis to take advantage of
available opportunities by capitalizing on the organization's strengths, neutralizing its weakness,
and countering potential threats.
How SWOT analysis helps managers: ✔✔-SWOT analysis helps managers summarize the
relevant, important fats from their external and internal analysis.
-they can identify the primary and secondary strategic issues their organization faces. The
managers then formulate a strategy that will build on the SWOT analysis to take advantage of
available opportunities by capitalizing on the organization's strengths, neutralizing its weakness,
and countering potential threats.
, Name the 5 types of corporate strategies that organizations use ✔✔1. corportate strategy
2. concentration strategy
3. vertical integration strategy
4. concentric diversification strategy
5. conglomerate diversification strategy
define corporate strategy ✔✔identifies the set of businesses, markets, or industries in which the
organization competes and the organization competes and the distribution of resources among
those businesses shows basic alternatives for a corporate strategy, ranging from very specialized
to highly diverse
Concentration Strategy ✔✔focuses on a single business competing in a single industry
vertical integration strategy ✔✔involves expanding the domain of the organizatoin into supply
channel or to distributors
concentric diversification strategy ✔✔involves moving into a new business that are related to the
company's original core business
conglomerate diversification strategy ✔✔a corporate strategy that invovles expansioin into
unrelated businesses
Name the two kinds of business strategies that companies can use to gain competitive advantage
✔✔1. Low-cost strategy
2. Differentiation Strategy
Define Low-cost strategy ✔✔business attempt to be efficient and offer a standard, no-frills product
ex: walmart
Latest 2022 Already Passed
Describe strategic planning ✔✔Making decisions about the organization's long-term goals and
strategies
Describe strategic goals ✔✔major target long-term goals that are effective and efficient
describe strategy ✔✔pattern of actions and resource allocations designed to achieve the goals of
the organization. 1. Where will we be active? 2. How will we get there (increase sales or acquire
another company)? 3. How will we win the in the marketplace (keep prices low or offer the best
service)? 4. how fast will we move in what sequence will we make the changes? 5.How will we
obtain financial returns (low cost or premium prices)? *In setting a strategy, managers try to match
the organization's skills and resources to the opportunities found in the external environment.
Explain what a Core Competency/ Capability means for an organization. ✔✔Core Capability: (or
competence) when resources are valuable, rare, inimitable, and organized. Something company
does especially well relative to its competitors. (EX: Honda small engine) Core competencies
typically refers to a set of skills or expertise in some activity rather than physical or financial assets.
Porter's 5 Model ✔✔Porter's 5 Model is a method used to help managers analyze the competitive
environment and adapt to or influence the nature of their competition.
Describe Porter's 5 Model and how it is used in the strategic planning process. ✔✔1. understand
the competitive environment, organization's must identify competitors.
2. analyze how to compete.
3. new entrants (Netflix took out blockbuster)
4. substitutes and complements (coke for starbucks; starbucks complement is a cake pop) 5.
suppliers: switching costs ( fixed costs buyers face when they change suppliers), supply chain
,management ( managing of the network of facilities and people that obtain materials from outside
the organization, transform them into products, and distribute them to customers.)
6. customers: without customers a company wont survive (final customer ex: mcdonalds)
(Intermediate customer ex: customer who purchases raw materials or wholesale products before
selling them)
Explain a SWOT Analysis ✔✔1. SWOT analysis: assessment of the organization's strengths,
weaknesses, opportunities, and threats
2. SWOT analysis helps managers summarize the relevant important facts from their external and
internal analysis
SWOT analysis strengths and weaknesses ✔✔-strength and weaknesses: interal recources
EX: organization's strengths might include skilled management, positive cash flow, and well-
known highly regarded brands.
Weakness might be lack of spare production capacity and the absence of reliable suppliers
SWOT analysis opportunities and threats ✔✔-SWOT analysis helps managers summarize the
relevant, important fats from their external and internal analysis.
-they can identify the primary and secondary strategic issues their organization faces. The
managers then formulate a strategy that will build on the SWOT analysis to take advantage of
available opportunities by capitalizing on the organization's strengths, neutralizing its weakness,
and countering potential threats.
How SWOT analysis helps managers: ✔✔-SWOT analysis helps managers summarize the
relevant, important fats from their external and internal analysis.
-they can identify the primary and secondary strategic issues their organization faces. The
managers then formulate a strategy that will build on the SWOT analysis to take advantage of
available opportunities by capitalizing on the organization's strengths, neutralizing its weakness,
and countering potential threats.
, Name the 5 types of corporate strategies that organizations use ✔✔1. corportate strategy
2. concentration strategy
3. vertical integration strategy
4. concentric diversification strategy
5. conglomerate diversification strategy
define corporate strategy ✔✔identifies the set of businesses, markets, or industries in which the
organization competes and the organization competes and the distribution of resources among
those businesses shows basic alternatives for a corporate strategy, ranging from very specialized
to highly diverse
Concentration Strategy ✔✔focuses on a single business competing in a single industry
vertical integration strategy ✔✔involves expanding the domain of the organizatoin into supply
channel or to distributors
concentric diversification strategy ✔✔involves moving into a new business that are related to the
company's original core business
conglomerate diversification strategy ✔✔a corporate strategy that invovles expansioin into
unrelated businesses
Name the two kinds of business strategies that companies can use to gain competitive advantage
✔✔1. Low-cost strategy
2. Differentiation Strategy
Define Low-cost strategy ✔✔business attempt to be efficient and offer a standard, no-frills product
ex: walmart
