ch 10 final Flashcards
strategic management process
-mission/purpose
-external analysis
-internal analysis
-formulate strategy
-implement strategy
-evaluate strategy
levels of strategy
corporate
business (consumer product unit, digital media unit, financial services unit)
functional (R+D, manufacturing, marketing, HR, finance)
corporate level
growth, stability, renewal
growth strategy
expanding the numbers of products offered or markets served through current or new business
types of growth strategies
concentration
vertical + horizontal integration
diversification
concentration
concentrates on a primary line of business and increasing the number of products offered or markets served
vertical integration
gaining control of inputs or distribution - backward and forward integration
horizontal integration
company grows by combining (merge or buy) other firms in the same industry
diversification
related - company grows by combining with firms in different but related industries
unrelated - when a company grows by combining with firms in different and unrelated industries
stability
absence of significant change in what the org is currently doing
renewal
a strategy designed to address org weaknesses that are leading to performance declines
renewal strategies
retrenchment - short run renewal strat
turnaround - cost reductions, layoffs, closing underperforming units closing entire product lines/services
BCG Matrix
considers market share and industry growth rates
cash cows - low growth rate, high market share
stars - HGR, HMS
question marks -HGR, LMS
dogs - LGR, LMS
business level strategies
cost leadership
differentiation
focus