ch 10 Flashcards
strategic management
decisions and actions that determine the long run eprformance of the org
strategic management
why strategic management?
results in higher org performance
require managers examine and adapt to changes
involved in many decisions
strat management process
mission/purpose
external analysis
internal analysis
formulate strat
implement strat
evaluate strat
levels of strategy
corporate / business / functional
corporate level
growth
stability
renewal
growth
expanding # of products
types of growth strategies
concentration
vertical integration
horizontal integration
diversificatiton
concentration
concentrates on a primary line of business and increasing number of products offered/ markets served
vertical integration
gaining control of inputs/distibution
horizontal integration
a company grows by combining (merge or buy) other firms in the same industry
diversification
related: company grows by combining with firms in diff but related industries
unrelated: when comapnygrows by combing with first in diff and unrelated
stability
absence of significant change in what the org is currently doing
renewal
strategy designed to address org weaknesses that are leading to performance declines
renewal strategy
retrenchment: Short run renewal strat
turnaround: cost reducs, layoffs, closing underperforming units, closing entire product lines/services
