Strategic Planning & Analysis Flashcards

Which strategy involves an organization expanding by acquiring or developing businesses in completely different industries from its core operations?

Answer: Conglomerate diversification

Conglomerate (unrelated) diversification involves entering industries entirely unrelated to current operations, primarily to spread risk or capitalize on financial opportunities.

The 'strategic gap' in organizational planning refers to:

Answer: The difference between a firm's current position and its desired future position

A strategic gap is the difference between where an organization currently stands and where it wants to be, driving the need for strategic initiatives to close that gap.

Which of the following best describes a 'cost leadership' generic strategy according to Porter?

Answer: Becoming the lowest-cost producer in an industry while maintaining acceptable margins

Cost leadership strategy aims to become the industry's lowest-cost producer, enabling competitive pricing or superior margins compared to rivals operating at similar prices.

What does the acronym 'OKR' stand for in strategic performance management?

Answer: Objectives and Key Results

OKR stands for Objectives and Key Results, a goal-setting framework that links high-level aspirational objectives with specific, measurable outcomes to track progress.

In stakeholder analysis, a stakeholder with HIGH power but LOW interest should be:

Answer: Kept satisfied with enough engagement to prevent negative interference

High-power, low-interest stakeholders should be kept satisfied to prevent them from becoming adversarial, without overwhelming them with unnecessary detail.

Which strategic analysis tool is specifically designed to evaluate the attractiveness of an industry by examining five competitive forces?

Answer: Porter's Five Forces

Porter's Five Forces framework analyzes industry structure through supplier power, buyer power, competitive rivalry, threat of new entrants, and threat of substitutes.

A 'first-mover advantage' in strategic management refers to:

Answer: Competitive benefits gained by being the first company to enter a new market or adopt an innovation

First-mover advantage refers to the competitive edge gained by the first organization to enter a new market, which can include brand recognition, customer loyalty, and scale economies.