MGT 8803 - Business Strategy
Terms in this set (110)
Role of Planning in Firm Planning (primary) -> organizing & staffing -> leading -> controlling
regulators | partners & shareholders | competitors | suppliers | tech, ec
External Context for Planning
labor, society | communities | customers
mgt's vision | mission/values | culture | people & workforce diversity |
Internal Context for Planning
technology | physical assets | intellectual property
1. provides direction & basis for coordination
2. minimize waste & redundancy
Planning is important because it... 3. reduces uncertainty
4. establishes goals
5. involves & engages all levels of firm
Residual Uncertainty the unknowable; uncertainty that remains...important in assessing risk
Hierarchical (Tall) Organizational many layers of middle mgt | senior mgrs make most operational decisi
Structure information flows from top-down | stable environment
front-line employees empowered to make decisions | information flow
Flat (Networked) Organizational
top-down AND bottom-up | few levels of middle mgt | decentralized
Structure
decision making | dynamic environment
, MGT 8803 - Business Strategy
1. broadly impacts firm
2. new markets to enter or existing to leave
Strategic Plans 3. concerns overall scope of firm
4. identifies initiative to create & sustain competitive advantage
5. driven by mgt's vision, mission, values
1. implementing strategic plans
2. interrelated
Functional Plans 3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
1. narrow, specific to firm
Tactical/Operations Plans
2. allocation of specific resources to specific tasks or operations
SMART Specific, Measurable, Attainable, Realistic, Timely
Main objective of business strategy achieve superior performance in marketplace
goal-directed actions a firm takes to gain & sustain superior performan
Strategy
relative to competitors.
, MGT 8803 - Business Strategy
superior performance relative to other competitors in same industry O
industry average | temporary
Competitive advantage
*people prefer your brand over another's so they are willing to pay mo
(ie, Apple)
1. diagnosis of competitive challenge
Elements of Good Business Strategy 2. guiding policy to address competitive challenge
3. set of coherent actions to implement
lowest-cost producer in industry | pricing at or below industry avg whi
Cost Leadership
leveraging a low "cost" advantage
economic value created is greater than competitors | uniqueness in an
Differentiation industry with broad market | making products unique to allow charging
premium price
battery technology, autonomous driving, high performance, supercha
How Tesla does Differentiation
network, wow factor
establish either a cost leadership OR differentiation competitive advan
Focus strategy
but focused in a narrow market segment (ex: Rolex, Louis Vuitton)
mgt's description of business model, technology, workforce, strategic
Vision
positioning, and goals | for inspiring employees & stakeholders
Terms in this set (110)
Role of Planning in Firm Planning (primary) -> organizing & staffing -> leading -> controlling
regulators | partners & shareholders | competitors | suppliers | tech, ec
External Context for Planning
labor, society | communities | customers
mgt's vision | mission/values | culture | people & workforce diversity |
Internal Context for Planning
technology | physical assets | intellectual property
1. provides direction & basis for coordination
2. minimize waste & redundancy
Planning is important because it... 3. reduces uncertainty
4. establishes goals
5. involves & engages all levels of firm
Residual Uncertainty the unknowable; uncertainty that remains...important in assessing risk
Hierarchical (Tall) Organizational many layers of middle mgt | senior mgrs make most operational decisi
Structure information flows from top-down | stable environment
front-line employees empowered to make decisions | information flow
Flat (Networked) Organizational
top-down AND bottom-up | few levels of middle mgt | decentralized
Structure
decision making | dynamic environment
, MGT 8803 - Business Strategy
1. broadly impacts firm
2. new markets to enter or existing to leave
Strategic Plans 3. concerns overall scope of firm
4. identifies initiative to create & sustain competitive advantage
5. driven by mgt's vision, mission, values
1. implementing strategic plans
2. interrelated
Functional Plans 3. aligned to business unit level planning
4. shorter term
5. drive budget development & staffing plans
1. narrow, specific to firm
Tactical/Operations Plans
2. allocation of specific resources to specific tasks or operations
SMART Specific, Measurable, Attainable, Realistic, Timely
Main objective of business strategy achieve superior performance in marketplace
goal-directed actions a firm takes to gain & sustain superior performan
Strategy
relative to competitors.
, MGT 8803 - Business Strategy
superior performance relative to other competitors in same industry O
industry average | temporary
Competitive advantage
*people prefer your brand over another's so they are willing to pay mo
(ie, Apple)
1. diagnosis of competitive challenge
Elements of Good Business Strategy 2. guiding policy to address competitive challenge
3. set of coherent actions to implement
lowest-cost producer in industry | pricing at or below industry avg whi
Cost Leadership
leveraging a low "cost" advantage
economic value created is greater than competitors | uniqueness in an
Differentiation industry with broad market | making products unique to allow charging
premium price
battery technology, autonomous driving, high performance, supercha
How Tesla does Differentiation
network, wow factor
establish either a cost leadership OR differentiation competitive advan
Focus strategy
but focused in a narrow market segment (ex: Rolex, Louis Vuitton)
mgt's description of business model, technology, workforce, strategic
Vision
positioning, and goals | for inspiring employees & stakeholders
