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Chapter 8-Quản trị học
Chapter 8-Quản trị học
EXCUTION
1) What is strategic management?
Strategic management refers to the set of decisions and actions
used to formulate and execute strategies that will provide a
competitively superior fit between the organization and its
environment to achieve organizational goals
*2) What is competitive advantage?
Competitive advantage is the organization’s distinctive edge for
meeting customer needs
*3) What are the characteristics of strategy?
- Strategy must be compared with other competitors
- Strategy must be suitable with all the factors of the
environment
- Strategy must affect the organization in long-term
*4) What are the elements of competitive advantage?
- Target customers: defines the customers and which of their
needs are to be served by the company
- Exploit core competencies (A core competence is something
that the organization does especially well in comparison to its
competitors): leader identifies what their company does especially
well and builds strategy around it
- Build synergy: when organizational parts interact to produce a
joint effect that is greater than the sum of the parts acting alone,
synergy occurs
- Create value: managers help their companies create
value by devising strategies that exploit core competencies and
attain synergy
*5) What are the 3 levels of strategy in organization?
- Corporate-level strategy (What business are we in?):
Strategic actions at this level usually relate to the acquisition of
new businesses; additions or divestments of business units,
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plants, or product lines; and joint ventures with other corporations
in new areas
- Business-level strategy (How do we compete?): Strategic
decisions at this level concern the amount of advertising,
direction, and extent of R&D; product changes; new-product
development; equipment and facilities; and expansion or
contraction of product and service lines.
- Functional-level strategy (How do we support the business-
level strategy?): Functional strategies involve all of the major
functions, including finance, R&D, marketing, and manufacturing
6) What are strategy formulation and strategy execution?
- Strategy formulation includes assessing the external
environment and internal problems to identify strategic issues,
then integrating the results into goals and strategy
- Strategy execution is the use of managerial and organizational
tools to direct resources toward accomplishing strategic results
*7) What is SWOT?
- SWOT stands for strengths, weaknesses, opportunities, threats
- Managers obtain external information about opportunities and
threats from a variety of sources, including customers,
government reports, suppliers, friends in other organizations, or
association meetings. Executives require information about
internal strengths and weaknesses from a variety of report,
including budgets, financial ratios, profit and loss statements, and
surveys of employee attitude and satisfaction
*8) What are the 3 ways to formulate the coporate-level
strategy?
- Portfolio strategy:
+ Corporations like to have a balanced mix of business
divisions called strategic business units (SBUs)
+ Portfolio strategy pertains to the mix of business units and
product lines that fit together in a logical way to provide synergy
and competitive advantage for the corporation
+ Organizations should not become too dependent on one
business (focus on or invest into 2 businesses are better than 1)
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- The Boston Consulting Group (BCG) matrix:
+ The BCG matrix organizes businesses along two dimensions:
business growth rate and market share
+ The combinations of high and low market share and high and
low business growth provide four categories for a corporate
portfolio: stars, question marks, cash cows, dogs
+ The star has a large market share in a rapidly growing
industry. It is important because it has additional growth potential,
and profits should be plowed into this business as investment for
future growth and profits
+ The cash cow exists in a mature, slow-growth industry but is
a dominant business in the industry, with a large market share.
Because heavy investments in advertising and plant expansion
are no longer required, the corporation earns a positive cash flow.
It can milk the cash cow to invest in other, riskier businesses.
+ The question mark exists in a new, rapidly growing industry,
but has only a small market share. The question mark business is
risky: It could become a star, or it could fail and become a dog.
The corporation can invest the cash earned from cash cows into
question marks with the goal of nurturing them into future stars.
+ The dog is a poor performer. It has only a small share of a
slow-growth market. The dog provides little profit for the
corporation and may be targeted for divestment or liquidation if
turnaround is not possible
- Diversification strategy:
+ The strategy of moving into new lines of business is called
diversification
+ There are 3 types of diversification:
Related diversification: expansion into new business
related to existing business activities
Unrelated diversification: expansion into new lines of
business
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Vertical integration: expansion into businesses that
supply to the business or are distributors
*9) How to formulate the busniess-level strategy?
- Business-level strategy concerns about how to compete
- A popular and effective model for formulating strategy is
Porter’s competitive strategies
- There are 5 Porter’s competitive forces that help determine a
company’s position vis-à-vis competitors in the industry
environment:
+ 1. Potential new entrants
+ 2. Bargaining power of buyers
+ 3. Bargaining power of suppliers
+ 4. Threat of substitute products
+ 5. Rivalry among competitors
- To find a competitive edge within the specific business
environment, Porter suggests that a company can adopt one of
three strategies: differentiation, cost leadership, or focus
+ Differentiation:
distinguish the firm’s products or services from others in
the industry
can reduce rivalry with competitors and fight off the threat
of substitute products because customers are loyal to the
company’s brand
requires a number of costly activities, such as product
research and design and extensive advertising
+ Cost leadership:
pursue cost reductions, and use tight cost controls to
produce products more efficiently than competitors
maintain stability rather than pursuing innovation and
growth
+ Focus:
concentrate on a specifc regional market or buyer group
use either a differentiation or cost leadership approach,
but only for a narrow target market
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*10) How to formulate the functional-level strategy?
- Functional-level strategies are the action plans used by major
departments to support the execution of business-level strategy
- Major organizational functions include:
+ Marketing
+ Production
+ Finance
+ Human resources
+ Research and Development