MGM3101 Management: Planning, Strategy and Competitive Advantage

What is planning?

• identify unappropriate goals and action for organization

• Deciding goals and action on how to achieve them for an organization

What are the three main steps of the planning process?

• Establish current state, determine future state, decide how to move forward

• Define mission, allocate resources, evaluate performance

• Identify strengths, weaknesses, opportunities

• Analyze competitors, set goals, implement strategies

What is a mission statement?

• A detailed plan for achieving goals

• A broad declaration of an organization’s purpose

• A financial report of an organization

• A list of products offered by an organization

What type of strategy focuses on driving total costs down?

• Differentiation strategy

• Focused differentiation strategy

• Low-cost strategy

• Corporate-level strategy

What is the purpose of SWOT analysis?

• To identify market trends

• To analyze internal strengths and weaknesses

• To set long-term goals

• To evaluate financial performance

Which of the following is a characteristic of a corporate-level strategy?

• Focuses on a single product line

• Indicates in which industries to compete

• Targets specific customer segments

• Details daily operations

What is a standing plan?

• A plan for financial forecasting

• A plan for one-time events

• A plan used in programmed decision situations

• A plan for long-term goals

What does vertical integration involve?

• Reinvesting profits in the current industry

• Expanding into unrelated industries

• Creating joint ventures with competitors

• Expanding operations backward or forward in the supply chain

What is the main goal of a business-level strategy?

• To establish a global presence

• To manage corporate resources

• To compete effectively against rivals

• To outline the overall mission of the organization

What is a focused low-cost strategy?

• Serving the entire market at a low cost

• Offering premium products at a high price

• Targeting multiple market segments

• Serving a specific market segment at the lowest cost