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
Multidomestic strategy
Customizes advertising and products to best fit local needs
Transnational strategy
Seeks efficiency of global operations with attention to local markets
Strategic alliances
A cooperative strategy that involves partnership between organizations to pursue mutual interests or strengthen competitive advantage
Supply chain
-Cooperative strategy
Supplier and distribution alliances
Co-opetition
-cooperative strategy
Competitors share information or technology
E-business strategies
Focus on using the Internet for business transactions
B2B business strategies
Use IT and Web portals to vertically link organizations with members of their supply chains
B2C business strategies
Business to customers: use it and web portals to link organization with members of their customers
Crowdsourcing
Interactive social media strategy that becomes an interactive idea exchange with customers
Strategic intent
Focuses organizational energy on achieving a compelling goal
Strategic management process
- Review current situation
- Analyze organization and external environment
- Develop new strategies
- Implement strategies
- Evaluate results
Mission statement
The reason for the organizations interest in society
Operating objectives
Specific results that the organization hopes to achieve
Swot analysis
A tool used in strategic planning to determine the current status of the organization
BCG matrix
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
Strategic leadership
The capability to inspire people to engage in a process of continuous change, performance enhancement
Strategic control
Responsibility of management to stay on top of strategy
Strategic thinkers
Question the status quo, challenge assumptions and encourage divergent points of view
