MGT 8803 - Business Strategy
Role of Planning in Firm - answer-Planning (primary) -> organizing & staffing -> leading -
c c c c c c c c c c c c c c
> controlling
c
External Context for Planning - answer-regulators | partners & shareholders |
c c c c c c c c c c
competitors | suppliers | tech, econ, labor, society | communities | customers
c c c c c c c c c c c c
Internal Context for Planning - answer-mgt's vision | mission/values | culture | people &
c c c c c c c c c c c c c
cworkforce diversity | technology | physical assets | intellectual property
c c c c c c c c c
Planning is important because it... - answer-1. provides direction & basis for coordination
c c c c c c c c c c c c
2. minimize waste & redundancy
c c c c
3. reduces uncertainty
c c
4. establishes goals
c c
5. involves & engages all levels of firm
c c c c c c c
Residual Uncertainty - answer-the unknowable; uncertainty that remains...important in
c c c c c c c c
assessing risk
c c
Hierarchical (Tall) Organizational Structure - answer-many layers of middle mgt | senior
c c c c c c c c c c c
mgrs make most operational decisions | information flows from top-down | stable
c c c c c c c c c c c c
environment
c
Flat (Networked) Organizational Structure - answer-front-line employees empowered to
c c c c c c c c
make decisions | information flows top-down AND bottom-up | few levels of middle mgt |
c c c c c c c c c c c c c c c
decentralized decision making | dynamic environment
c c c c c c
Strategic Plans - answer-1. broadly impacts firm
c c c c c c
2. new markets to enter or existing to leave
c c c c c c c c
3. concerns overall scope of firm
c c c c c
4. identifies initiative to create & sustain competitive advantage
c c c c c c c c
5. driven by mgt's vision, mission, values
c c c c c c
Functional Plans - answer-1. implementing strategic plans
c c c c c c
2. interrelated
c
3. aligned to business unit level planning
c c c c c c
4. shorter term
c c
5. drive budget development & staffing plans
c c c c c c
, Tactical/Operations Plans - answer-1. narrow, specific to firm c c c c c c c
2. allocation of specific resources to specific tasks or operations
c c c c c c c c c
SMART - answer-Specific, Measurable, Attainable, Realistic, Timely
c c c c c c
Main objective of business strategy - answer-achieve superior performance in
c c c c c c c c c
marketplace
c
Strategy - answer-goal-directed actions a firm takes to gain & sustain superior
c c c c c c c c c c c
performance relative to competitors.
c c c c
Competitive advantage - answer-superior performance relative to other competitors in
c c c c c c c c c
same industry OR industry average | temporary
c c c c c c c
*people prefer your brand over another's so they are willing to pay more (ie, Apple)
c c c c c c c c c c c c c c
Elements of Good Business Strategy - answer-1. diagnosis of competitive challenge
c c c c c c c c c c
2. guiding policy to address competitive challenge
c c c c c c
3. set of coherent actions to implement
c c c c c c
Cost Leadership - answer-lowest-cost producer in industry | pricing at or below industry
c c c c c c c c c c c c
avg while leveraging a low "cost" advantage
c c c c c c c
Differentiation - answer-economic value created is greater than competitors |
c c c c c c c c c
uniqueness in an industry with broad market | making products unique to allow charging
c c c c c c c c c c c c c c
premium price
c c
How Tesla does Differentiation - answer-battery technology, autonomous driving, high
c c c c c c c c c
performance, supercharger network, wow factor
c c c c c
Focus strategy - answer-establish either a cost leadership OR differentiation competitive
c c c c c c c c c c
advantage but focused in a narrow market segment (ex: Rolex, Louis Vuitton)
c c c c c c c c c c c c
Vision - answer-mgt's description of business model, technology, workforce, strategic
c c c c c c c c c
positioning, and goals | for inspiring employees & stakeholders
c c c c c c c c c
Mission - answer-how firm will achieve vision | product OR customer market focus
c c c c c c c c c c c c
Core Values - answer-guiding principles of firm | support company's vision, shape
c c c c c c c c c c c
culture, & reflect company's identity & personality
c c c c c c c
Business Model Framework - answer-Value Delivery
c c c c c
Value Creation c
Value Capture c
(DCC)
Role of Planning in Firm - answer-Planning (primary) -> organizing & staffing -> leading -
c c c c c c c c c c c c c c
> controlling
c
External Context for Planning - answer-regulators | partners & shareholders |
c c c c c c c c c c
competitors | suppliers | tech, econ, labor, society | communities | customers
c c c c c c c c c c c c
Internal Context for Planning - answer-mgt's vision | mission/values | culture | people &
c c c c c c c c c c c c c
cworkforce diversity | technology | physical assets | intellectual property
c c c c c c c c c
Planning is important because it... - answer-1. provides direction & basis for coordination
c c c c c c c c c c c c
2. minimize waste & redundancy
c c c c
3. reduces uncertainty
c c
4. establishes goals
c c
5. involves & engages all levels of firm
c c c c c c c
Residual Uncertainty - answer-the unknowable; uncertainty that remains...important in
c c c c c c c c
assessing risk
c c
Hierarchical (Tall) Organizational Structure - answer-many layers of middle mgt | senior
c c c c c c c c c c c
mgrs make most operational decisions | information flows from top-down | stable
c c c c c c c c c c c c
environment
c
Flat (Networked) Organizational Structure - answer-front-line employees empowered to
c c c c c c c c
make decisions | information flows top-down AND bottom-up | few levels of middle mgt |
c c c c c c c c c c c c c c c
decentralized decision making | dynamic environment
c c c c c c
Strategic Plans - answer-1. broadly impacts firm
c c c c c c
2. new markets to enter or existing to leave
c c c c c c c c
3. concerns overall scope of firm
c c c c c
4. identifies initiative to create & sustain competitive advantage
c c c c c c c c
5. driven by mgt's vision, mission, values
c c c c c c
Functional Plans - answer-1. implementing strategic plans
c c c c c c
2. interrelated
c
3. aligned to business unit level planning
c c c c c c
4. shorter term
c c
5. drive budget development & staffing plans
c c c c c c
, Tactical/Operations Plans - answer-1. narrow, specific to firm c c c c c c c
2. allocation of specific resources to specific tasks or operations
c c c c c c c c c
SMART - answer-Specific, Measurable, Attainable, Realistic, Timely
c c c c c c
Main objective of business strategy - answer-achieve superior performance in
c c c c c c c c c
marketplace
c
Strategy - answer-goal-directed actions a firm takes to gain & sustain superior
c c c c c c c c c c c
performance relative to competitors.
c c c c
Competitive advantage - answer-superior performance relative to other competitors in
c c c c c c c c c
same industry OR industry average | temporary
c c c c c c c
*people prefer your brand over another's so they are willing to pay more (ie, Apple)
c c c c c c c c c c c c c c
Elements of Good Business Strategy - answer-1. diagnosis of competitive challenge
c c c c c c c c c c
2. guiding policy to address competitive challenge
c c c c c c
3. set of coherent actions to implement
c c c c c c
Cost Leadership - answer-lowest-cost producer in industry | pricing at or below industry
c c c c c c c c c c c c
avg while leveraging a low "cost" advantage
c c c c c c c
Differentiation - answer-economic value created is greater than competitors |
c c c c c c c c c
uniqueness in an industry with broad market | making products unique to allow charging
c c c c c c c c c c c c c c
premium price
c c
How Tesla does Differentiation - answer-battery technology, autonomous driving, high
c c c c c c c c c
performance, supercharger network, wow factor
c c c c c
Focus strategy - answer-establish either a cost leadership OR differentiation competitive
c c c c c c c c c c
advantage but focused in a narrow market segment (ex: Rolex, Louis Vuitton)
c c c c c c c c c c c c
Vision - answer-mgt's description of business model, technology, workforce, strategic
c c c c c c c c c
positioning, and goals | for inspiring employees & stakeholders
c c c c c c c c c
Mission - answer-how firm will achieve vision | product OR customer market focus
c c c c c c c c c c c c
Core Values - answer-guiding principles of firm | support company's vision, shape
c c c c c c c c c c c
culture, & reflect company's identity & personality
c c c c c c c
Business Model Framework - answer-Value Delivery
c c c c c
Value Creation c
Value Capture c
(DCC)
