STRATMAN QUIZ

• Long-Term Objectives

  Refer to the goals and targets that an organization aims to achieve over an extended period, typically spanning more than three years.
• Nature of Long-Term Objectives:

  • Strategic Alignment
  • Impact on Performance
  • Adaptability and Flexibility
  • Time Horizon
  • Motivational Tool
• Financial objectives are specific, quantifiable targets that focus on the financial aspects of the organization's performance.
• Strategic objectives are broader, long-term goals that focus on the overall direction and success of the organization.
• Balanced Scorecard derives its name from the perceived need of firms to "balance" financial measures that are oftentimes used exclusively in strategy evaluation and control with non financial measures such as product quality and customer service.
• Types of Strategies:

  1. Comprehensive Strategic Management
  2. Vision, Mission, Values
  3. Perform External Analysis
  4. Perform Internal Analysis
  5. Setting Objective
  6. Identifying Strategic Alternative
  7. Evaluating Strategic Alternative
• Comprehensive Strategic Management - is the process of systematically planning, implementing, evaluating, and adapting an organization's strategies to achieve its long-term goals and objectives.
• Vision, Mission, Values - Defining the organization's purpose, aspirations, and core beliefs.
• Perform External Analysis - External analysis assesses factors outside the organization affecting its strategy
• Perform Internal Analysis - Examines the organization's strengths and weaknesses within its operations.
• Setting Objectives - Establishing specific, measurable, achievable, relevant, and time-bound (SMART) goals.
• . Identifying Strategic Alternatives - Generating potential strategies based on the analysis, such as differentiation, cost leadership, market penetration, etc.
• Evaluating Strategic Alternatives - UsingtoolslikeDecision Matrices, Cost-Benefit Analysis, orScenarioPlanning to select the most viable strategies
• Alternative Strategies are different plans or actions anorganizationcanchoose from to achieve its objectives, allowingflexibilityin approach based on changing circumstances.
• Alternative Strategies

  1. Market Penetration Strategy
  2. Product Development Strategy
  3. Market Development Strategy
  4. Cost Leadership Strategy
• Market Penetration Strategy - Increasingmarketshare for existing products/services incurrentmarkets.
• Product Development Strategy - Creatingnewproducts/services for existing markets.
• Market Development Strategy- Expandingexisting products/services into newmarkets.
• Cost Leadership Strategy - Becoming the lowest-cost producer in the industry.
• Differentiation Strategy- Offering unique products/services that stand out in the market
• Differentiation Strategy

  1. Forward Integration
  2. Backward Integration
  3. Horizontal Integration
  4. Related Diversification
  5. Unrelated Diversification
• Forward Integration - Gaining ownership or increased control over distributors or retailers
• Backward Integration - Seeking ownership or increased control of a firm’s suppliers
• Horizontal Integration - Seeking ownership or increased control over competitors
• Related Diversification - Adding new but related products or service
• Unrelated Diversification - Adding new, unrelated products or services
• Level of Strategies

  1. Corporate Strategy
  2. Business Strategy
  3. Functional Strategy
• Corporate Strategy- Defines the organization’s overall direction and the high-level ideas of how to move towards it.
• Business Strategy is a means to achieve the goals of the specific business units in the organization.
• Functional Strategy- This level of strategy designs the approach for the different functional areas or departments.
• Operational Strategy- Situated at the lowest tier of the strategic hierarchy, focuses on the day-to-day actions and tactics needed to run the business, manage processes, and implement change effectively.
• Characteristics of Operational Level Strategy:

  1. Tactical Execution
  2. Short-term focus
  3. Resource Utilization
  4. Project Management
  5. Feedback and Adaptation
  6. Immediate Impact
• Integration Strategies are processes that businesses can use to enhance their competitiveness, efficiency or market share by expanding their influence into new areas.
• Integration Strategies:

  1. Vertical Integration
  2. Horizontal Integration

  two types of Vertical Integration

  1. Forward Integration
  2. Backward Integration
• Vertical Integration - involves the acquisition of business operations within the same production level.
• Horizontal Integration - is a strategy where a company acquires, merges or takes over another company with the same industry value chain.
• Forward Integration - is a strategy adopted by business to reduce production costs and improve the firm's efficiency by acquiring supplier companies and, therefore, replacing the third party channels and consolidating its operations
• Backward Integration - is a process in which a company acquires or merges with other businesses that supply raw materials needed in the production of its finished product.
• Intensive strategies are implemented when a company wants to expand its market reach or its product lines.
• Intensive strategies:

  1. Market Penetration
  2. Market Development
  3. Product Development