Ch7- Strategy and Strategic Management Flashcards

1
Q

Strategy

A

A comprehensive action plan that dictates direction for an organization and guides resource utilization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Competitive advantage

A

Operating in successful ways that are difficult to duplicate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Corporate strategy

A

Directions and guidelines for use of resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Business strategy

A

Identifies how a strategic business unit will compete in its product or service domain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Functional strategy

A

Guides activities within one specific area of operations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Growth strategy

A

Expansion through current operations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Concentration strategy

A

Expansions within an existing business area

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Diversification

A

Expansion by entering new business areas

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Vertical integration

A

Expansion by acquiring existing suppliers or distributors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Retrenchment

A

Changing operations to correct weakness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Liquidation

A

An extreme form of retrenchment, the business closes and sells off its assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Restructuring

A

Reduces the scale or mix of operations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Downsizing

A

Decreases the size of operations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Divestiture

A

Selling off part of the organization to focus on core businesses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Globalization strategy

A

Adopts standardized products and advertising for use worldwide

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Multidomestic strategy

A

Customizes advertising and products to best fit local needs

17
Q

Transnational strategy

A

Seeks efficiency of global operations with attention to local markets

18
Q

Strategic alliances

A

A cooperative strategy that involves partnership between organizations to pursue mutual interests or strengthen competitive advantage

19
Q

Supply chain

A

-Cooperative strategy

Supplier and distribution alliances

20
Q

Co-opetition

A

-cooperative strategy

Competitors share information or technology

21
Q

E-business strategies

A

Focus on using the Internet for business transactions

22
Q

B2B business strategies

A

Use IT and Web portals to vertically link organizations with members of their supply chains

23
Q

B2C business strategies

A

Business to customers: use it and web portals to link organization with members of their customers

24
Q

Crowdsourcing

A

Interactive social media strategy that becomes an interactive idea exchange with customers

25
Q

Strategic intent

A

Focuses organizational energy on achieving a compelling goal

26
Q

Strategic management process

A
  1. Review current situation
  2. Analyze organization and external environment
  3. Develop new strategies
  4. Implement strategies
  5. Evaluate results
27
Q

Mission statement

A

The reason for the organizations interest in society

28
Q

Operating objectives

A

Specific results that the organization hopes to achieve

29
Q

Swot analysis

A

A tool used in strategic planning to determine the current status of the organization

30
Q

BCG matrix

A

Analyzes business opportunities according to growth rate and market share

Question marks: poor position, growing industry
Stars: dominant position, growing industry
Dogs: poor position, low growth industry
Cash cow: dominant position, low growth industry

31
Q

Strategic leadership

A

The capability to inspire people to engage in a process of continuous change, performance enhancement

32
Q

Strategic control

A

Responsibility of management to stay on top of strategy

33
Q

Strategic thinkers

A

Question the status quo, challenge assumptions and encourage divergent points of view