Ch7- Strategy and Strategic Management Flashcards
Strategy
A comprehensive action plan that dictates direction for an organization and guides resource utilization
Competitive advantage
Operating in successful ways that are difficult to duplicate
Corporate strategy
Directions and guidelines for use of resources
Business strategy
Identifies how a strategic business unit will compete in its product or service domain
Functional strategy
Guides activities within one specific area of operations
Growth strategy
Expansion through current operations
Concentration strategy
Expansions within an existing business area
Diversification
Expansion by entering new business areas
Vertical integration
Expansion by acquiring existing suppliers or distributors
Retrenchment
Changing operations to correct weakness
Liquidation
An extreme form of retrenchment, the business closes and sells off its assets
Restructuring
Reduces the scale or mix of operations
Downsizing
Decreases the size of operations
Divestiture
Selling off part of the organization to focus on core businesses
Globalization strategy
Adopts standardized products and advertising for use worldwide