Mission and Vision
What question does a mission statement answer?
What is our business?
What is the main goal of an external audit?
Identify opportunities and threats.
What is the main goal of an internal audit?
Identify strengths and weaknesses of the organization.
What type of strategy involves gaining control over suppliers?
Backward Integration
What does BCG stand for in the BCG Matrix?
Boston Consulting Group
What is the key question a vision statement answers?
What do we want to become?
Name three categories of external forces.
Economic, technological, political, social, environmental, Industry
Name two types of internal resources.
Physical, human, organizational
What is a common strategy when a company is in a weak industry position?
Retrenchment
What two axes are used in the IE Matrix?
IFE and EFE total weighted scores
Name three components of a mission statement.
Clients, products/services, markets, Technology, Concern for survival, Philosophy, self-concept, Concern for public image, concern for employees,
What tool helps compare a firm with competitors using external factors?
Competitive Profile Matrix (CPM)
What is the purpose of Value Chain Analysis (VCA)?
To identify cost advantages and core competencies.
What kind of diversification focuses on unrelated products?
Unrelated Diversification
In the SWOT matrix, what are ST strategies?
Use strengths to avoid or reduce threats
Why should the vision be developed before the mission?
Because it provides the foundation for creating the mission.
What does AQCD stand for in the context of factor selection?
Actionable, Quantitative, Comparative, Divisional
What does the VRIO acronym stand for?
Valuable, Rare, Inimitable, Organized
What strategy is used to increase market share in existing markets?
Market Penetration
What quadrant in the Grand Strategy Matrix represents strong position and slow growth?
Quadrant IV
List three characteristics of a good vision statement.
Inspiring, shows future change, contains core values, shows a picture on how the future is, roadmap, challenging
Name one opportunity and one threat a company might face.
E.g., Opportunity: new markets; Threat: new competition
What is the final step in creating the IFE matrix?
Add the weighted scores to get a total weighted score.
What are Porter’s three generic strategies?
Cost leadership, differentiation, focus
Which matrix uses market share and industry growth as its axes?
BCG Matrix