Who do we have to involve in the process of performing the strategic management

model?

Everyone

List all the components of the strategic management model.

Vision, mission
External and internal audit (SWOT)
Objectives
Strategies
Evaluation

Who do we have to involve in the process of developing the Mission statement?

The strategists (director, CEO and managers).

From what source do we get the information to develop an internal audit?

❖ IFE matrix
❖ Management, finance/accounting, marketing, R&D, management information
systems operations, production/operations.

Which of the Porter’s Five-Forces is usually the most powerful of the five
competitive forces?

Rivalry Among Competing Firms

1. Rivalry among competing firms
2. Potential entry of new competitors
3. Potential development of substitute products
4. Bargaining power of suppliers
5. Bargaining power of consumers

What does forecasting means?

Educated assumptions about future trends and events.

List the steps to develop the EFE matrix.

✓ List key external factors

✓ Assing a weight
✓ Assing a rating
✓ Multiply each factor’s weight by its rating.
✓ Sum the weighted scores.

List the steps to develop the IFE matrix.

List key internal factors

Assing a weight
Assing a rating
Multiply each factors weight by its rating.
Sum the weighted scores.

The step 3 in developing the EFE matrix is to assign a rating between 1 and 4 to
each key external factor. What does these numbers mean?

4= the response is superior

3= the response is above average

2= the response is average

1= the response is poor

Who do we have to involve in the developing of the SWOT analysis?

Everyone

What is benchmarking?

❖ Is an analytical tool used to determine whether a firm’s value chain activities are
competitive compared to rivals and thus conductive to winning in the marketplace.

Mention a benefit of benchmarking.

 • Enables a firm to take action to improve its competitiveness by identifying (and
improving upon) value chain activities where rival firms have comparative
advantages in cost, service, reputation, or operation.
• Entails measuring costs of value chain activities across and industry to determine
“best practices” among competing firms for the purpose of duplicating or improving
upon those best practices.

What is organizational culture?

▪ Internal phenomenon that permeates all departments and divisions of an

organization.
▪ Pattern of behavior that has been developed by an organization as it learns to cope
with its problem of external adaptation and internal integration.
▪ Process that has worked well enough to be considered valid and to be taught to
new members as the correct way to perceive, think, and feel.

List some activities of the value chain.

Explain how the items along the value chain may impact other items positively or
negatively.

Items along the value chain may impact other items positively or negatively, so
there exist complex interrelationships.

List the steps to develop the VCA.

Divide a firm’s operations into specific activities or business processes.

Attach a cost to each discrete activity (time/money).
Converts the cost data into information.

Mention the characteristic of the long term objectives.

❖ Quantitative
❖ Measurable
❖ Realistic
❖ Understandable
❖ Challenging
❖ Hierarchical
 ❖ Obtainable
❖ Congruent among organizational units

List the sources of benchmarking.

Sources of benchmarking information, include

✓ Published reports
✓ Trade publications
✓ Suppliers
✓ Distributors
✓ Customers
✓ Partners
✓ Creditors
✓ Shareholders
✓ Willing rival firms

The hardest part of benchmarking can be gaining access to other firms value chain
activities.

What does VCA stands for?

Value Chain Analysis