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Integration and Stra
for bus5000
| Term | Definition |
|---|---|
| Sustainable competitive advantage is | the ability of an organization to orchestrate a value-creating strategy that other firms are unable to replicate and find it too costly to imitate. |
| Strategic management attempts to understand how organizations | create, capture, and sustain competitive advantage. |
| Strategic management is characterized by: | criticality, uncertainty, complexity, alternatives, commitment of resources, irreversibility |
| The glue that holds the integration process is | leadership. |
| The ultimate goal of an organization is to create and provide | value to customers |
| While firms place considerable emphasis on technology and process, the greatest differentiator is | people |
| The five-step approach to strategy involves | developing a mission, setting objectives, formulating a strategy, implementing the strategy, and evaluating performance. Constant feedback and corrective action completes the system. |
| The two generic strategies are | cost leadership and differentiation. |
| growth can be through | market penetration, market development, product development, and diversification |
| Specifically, strategy is an organization’s game plan to: | Create satisfied customers (Peter Drucker) Be ahead of competition (Michael Porter) Achieve performance targets (ROI, RONA) Develop an eco-system that satisfies all stakeholders (Shared Value, Shared Purpose)(Porter and Kramer) |
| A Mission is a statement that provides | the rationale for an organization’s existence. |
| A Vision is | an aspirational future state that an organization desires to be in. |
| Objectives represent the transition from | the mission (purpose of business) into objectives. |
| Goals are generic or qualitative (Example: We want to make profits) while objectives are | specific and measurable. |
| stretch objectives – | those that need the organization to be on the lookout for new opportunities and higher performance than normal. |
| criteria of VRIN | Valuable – helps to exploit opportunities and neutralize threats. Rare – a capability not possessed by many others. Inimitable – difficult to imitate Non-substitutable – cannot be performed any other way. |
| Vision is | usually the overarching goal that the founder or entrepreneur has for the business. It is embedded in the values, beliefs, and aspiration of the promoter. |
| Mission is | a team exercise carried out by executives from different functions. The idea is to provide a road map to realize the vision. |
| value proposition – | what do we have to offer to different stakeholders – customers, suppliers, employees, society, and even competitors, and how do we preserve and protect the environment? |
| strategy scholar Gary Hamel suggests that | objectives must “stretch” every individual, function, department, and division. |
| Michael Porter suggested two approaches to achieving competitive advantage – | cost leadership and differentiation. |
| Cost leadership is | the ability of an organization to improve operational efficiency and reduce unit cost to a level that is lower than that of competitors |
| Differentiation is | the ability of a firm to provide unique features, characteristics, service, brand image, and exclusivity, all of which combine to enable the firm to charge a premium price and thus earn above-industry-average returns |
| focused cost leadership and focused differentiation | address small markets or a market segment or a part of a segment called a niche |
| “stuck-in-the-middle.” | Many companies fail in their attempt to implement a hybrid strategy. In the process, they lose both positions – cost leadership and differentiation |
| Situation analysis involves: | External factors – the macroenvironment (industry and competitive conditions) Internal factors – the organization’s resources, capabilities, and distinctive competencies. |
| Tools that are useful in carrying out a situation analysis are: | SWOT (Strengths, Weaknesses, Opportunities, and Threats). Porter’s Five Forces Model. |
| Sources of competitive pressure are: | Competitive rivalry within an industry. Threat of new entrants. Threat of substitutes. Bargaining power of buyers (customers). Bargaining power of suppliers. |
| Strategic groups are | firms in an industry that follow similar strategies such as low cost and acceptable quality |
| growth in four stages: | Single business serves a local or regional market. Geographic expansion. Vertical integration – backward or forward. Diversification – growth slows and the firm enters new industries – related or unrelated. |
| Ansoff’s model of growth strategies deals with | new or existing markets and new or existing products. |
| The implementation of any strategy – generic or growth – requires: | Adequate resources to support the strategy. transparent screening of requests for new capital projects Shifting resources based on strategic priorities – downsizing some processes, upsizing some, and eliminating the unnecessary ones. |
| strategy answers these questions: | Where are we now? Where do we want to go? How do we get there? How will we know if we got there? |
| ______________________ are firms in an industry that follow similar strategies such as low cost and acceptable quality | strategic groups |
| leadership is the ability to: | Set and achieve challenging goals, Make timely and clear decisions, Outperform the competition, and Inspire others to perform well and reach their potential. |
| Strategic leadership is the ability to | think, act, and influence others in ways that ensure the enduring success of the organization. |
| Strategic leadership is therefore as much about managing conflicting expectations of people (stakeholders) as it is about | spotting and exploiting opportunities. |
| An adaptive strategic leader combines | resoluteness with flexibility. |
| Organizational change is | any transition that requires a change in human performance. |
| A flatter organization has | fewer boxes for C-suite or Executive level VPs near the top and more boxes for salaried staff and hourly employees down below. |
| A hierarchical organization is an organizational structure where | every entity in the organization, except one, is subordinate to a single other entity. |
| Somewhere in between hierarchies and flat organizations lie | flatarchies. |
| Technology, Globalization, and __________________________ are ever-changing variables that spark a need for change amongst organizations. | changing markets |
| Internal customers are | those within an organization that your work impacts |
| To be useful, a market segment should be: | Measurable, Accessible, Substantial, Differentiable, and Actionable. |
| best way to increase customer loyalty | remove obstacles, make it easy for the customer |
| The characteristics that render the measurement of service quality difficult are | Intangibility, Heterogeneity, and Inseparability. |
| _______________________ show consumer perceptions of brands versus competing products on important buying dimensions. | positioning maps |
| The competitive environment of the 21st century has three key components – | complexity, ambiguity, and rapid change. |
| Psychological safety is | an environment that encourages divergent views to be expressed without the fear of ridicule or retribution. |
| The Balanced Score Card looks at organizational performance through four prisms: | financial, customer focus, internal processes, organizational capacity |
| By focusing on cost drivers, ABC isolates activities that do not _____ and paves the way for managers to either eliminate them or at the least to reduce such costs | create value |
| The objective of an effective SCM system is to minimize _____ at every stage. | inventories |
| SCM flows are comprised of: | Product or Service flow. Data and Information flow, and Finance flow. |
| an organization has to grapple with three questions/choices constantly: | market or customer choices, product or service choices, sustainability choices |
| Continual improvement refers to | general processes of improvement and encompassing “discontinuous” or “non-linear” improvements – that is, many different approaches, covering different areas. |
| Continuous improvement is | a subset of continual improvement, with a specific focus on linear, incremental improvement within an existing process. |
| The characteristics and attributes that customers look for in products and services can be termed | Customer Requirements |
| PDCA cycle | Plan – Identify an opportunity and plan for change Do – Implement the change on a small scale Check – Use data to analyze results and determine whether it made a difference Act – If the change was successful, implement it on a wider scale |
| An AAR(after action review) is centered on four questions: | What was expected (or supposed) to happen? What actually happened? What went well and why? What can be improved and how? |
| At the heart of Six Sigma | is the DMAIC approach (Define, Measure, Analyze, Improve, and Control). Processes require inputs (x) and produce outputs (y). If you control the inputs, you will control the outputs. This is expressed as: y = f(x). |
| Poka-yoke is the Japanese term for | mistake-proofing |
| A _____________________ can provide the framework for continual improvement to increase the probability of enhancing the customer experience even while meeting the expectations of other stakeholders (shareholders, employees, suppliers, and society). | quality management system |
| ___________________ is a method that provides organizations with the tools to improve the capability of their business processes. | six sigma |
| The value chain is comprised of two types of activities – | primary activities that directly create value, and support activities that facilitate the primary activities. |
| Inbound Logistics is | the process of ensuring that raw materials, components, consumables, maintenance equipment, and everything required for manufacturing a product are available in time, at the lowest cost, and meeting quality requirements |
| Outbound Logistics is | the process of delivering the product to the customer either through a distribution channel or directly |
| Flexible Manufacturing Systems (FMS) have evolved to such an extent that | even one or a small number of units can be produced without driving up costs |
| Enterprise resource planning (ERP) is | a business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services, and human resources. |
| The objective of integration is to create _____– the concept of the whole being greater than the sum of the parts. | synergy |
| The value chain is comprised of two types of activities. Match those activities to their descriptors below. | primary activities, secondary activities |
| ________________________________ is a business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions | erp |
| The value chain is comprised of two types of activities – primary activities that directly create value, and support activities that facilitate the primary activities. | primary activities that directly create value, and support activities that facilitate the primary activities. :/ |
| strategic leaders must search for opportunities to ____ | create value (r) |
| strategic leadership is about ___ in the process of exploiting opportunities | managing conflicting expectations of people (r) |
| today's competitive environment is characterized by rapid change, ___, and ambiguity | complexity (r) |
| according to the service value chain, customer satisfaction drives -___ | customer loyalty (r) |
| who are an organization's internal customers? | employees whose work is impacted by or dependent on the work of others in the organization (w) |
| positioning maps show __ of brands verses competing brands on important buying decisions | customer perceptions (r) |
| ____is an integral part of supply chain management | logistics and inventory management (r) |
| a low performance orientation with high psychological safety leads to ___ | complacency (r) |
| a performance oriented system embedded in an organizational culture of ___leads to a learning environment | high psychological safety (r) |
| a firm has many goals and a set of ___ that shape the achievement of the goals | values (w) |
| a copper producing company acquiring copper ore mines to ensure a steady supply of raw materials is pursuing a ___strategy | vertical backward integration (r) |
| checkers drive in and redbox are examples of a ___ strategy | focus cost leadership (w) |
| in terms of value chain integration, leadership provides the mission, vision, ____, and ____ | strategies; objectives (r) |
| the ability to manufacture a small number of units without increasing costs is a feature of __ | flexible manufacturing systems (r) |
| the primary aim of operations is to ___ | maximize efficiency (r) |
| innovation is responsible for both ___ and ___ innovation | product; process (r) |
| at the heart of six sigma is the ___ process | DMAIC (w) |
| while evaluating alternatives, one needs to look at whether the proposed course of action is legal, ethical, ___, and ___ | economic; practical (r) |
| continuous monitoring and evaluation of system performance requires a ____ mechanism | feedback (r) |
| helpful techniques to define a problem are flow charts to depict the process and ___to identify the root cause | cause and effect diagrams (w) |
| cinnabon and kopi luwak are examples of a ___strategy | focus differentiation (r) |
| according to ansoff, a firm that introduces new products into new markets is engaged in _____ | diversification (r) |
| a ___ is a statement that provides insights into the reason for a firm's existence | mission (r) |
| when leaders are unable to achieve competitive advantage either through cost leadership or differentiation, the organization ___ | is stuck in the middle (r) |
| strategic leaders can prepare people for change through ____ | counseling and training (r) |
| the purpose of ____ in leadership is to synthesize conflicting viewpoints | interpretation (w) |
| strategic leaders can mitigate people-oriented resistance to change by _____ | empowering people (r) |
| toyota's relationship with its suppliers and dealers is a classic example of the ___model of organization | network (w) |
| a compelling unique value or unique selling proposition is the building block of ___ | differentiation (r) |
| firms such as ebay and tophatter offer a ___ value proposition | less for much less (r) |
| a strategy map outlines the ___ along each of the four dimensions of the balanced scorecard | strategic approaches (w) |
| by focusing on cost drivers, activity based costing isolates activities that | do not create value (r) |
| to be instruments for purposeful change, strategy maps should be a part of __ | strategy formulation (r) |
| the building blocks of competitive advantage are efficiency, quality, __ and ___ | innovation and customer responsiveness (r) |
| michael porter's value chain concept categorizes organizational processes into __ and ___ activities | primary; support (r) |
| optimizing an enterprise's strategic value is dependent on the ___between various levels and across domains | degree of alignment (r) |
| return on investment in the realm of quality denotes the rate of ___to ___ resulting from the improvement initiatives | benefits; costs (r) |
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bitchalaureateofscience
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