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Strategic Management > Chap 7: Corporate Level Strategy > Flashcards

Chap 7: Corporate Level Strategy Flashcards

1
Q

Refers to the art of a troop leader or a general

A

Strategy

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2
Q

Comes from the Greek word strategia

A

Strategy

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3
Q

Defines strategy as the analysis, decision, an action that enables a company to succeed

A

Dess et al (2012)

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4
Q

The analysis, decision, and action that enables a company to succeed

A

Strategy

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5
Q

Define it as the comprehensive plan, it states have a company will achieve its mission and objectives

A

Wheelen and hunger (2010)

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6
Q

A comprehensive plan that states how a company will achieve its mission and objectives

A

Strategy

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7
Q

A plan formulated after an extensive critical analysis of a company’s resources

A

Strategy

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8
Q

Represent the category of companies based on their common strategic orientation and combination of structure, culture, and processes

A

Strategic type

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9
Q

These are businesses with a few product lines, and they intend to defend them from new products entering the market. Therefore, most concern is how to improve their operating activities, in terms of cost reduction. Being cost and efficiency oriented they are unlikely to make bolder steps to innovate and move the new areas.

A

Defenders

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10
Q

These are companies with bloodlines of products. Product development innovation in the new market are the essence of their strategy orientation. Creativity for them is more important than efficiency in operations.

A

Prospectors

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11
Q

These are multi divisional companies that compete in at least two types of industries, one stable and one variable, while maintaining stability and flexibility.

A

Analyzers

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12
Q

These are businesses that do not have firm or consistent strategic orientations. They adopt piecemeal or quick response strategies, which are often times ineffective to meet the pressures changes and challenges of the environment

A

Reactors

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13
Q

Types of strategies according to hierarchy

A

Corporate strategy
Business strategy
Functional strategy

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14
Q

Usually formulated with a top level management, is a comprehensive master plan that describes the overall direction of a company

A

Corporate strategy

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15
Q

Occurs at the business or product unit, describes how a Company improves its competitive position in a specific industry.

A

Business strategy

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16
Q

A plan taken by functional areas that is intended to maximize the productivity of a resource to achieve competitive advantage

A

Functional strategy

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17
Q

The process of developing a comprehensive plan to effectively manage the external environmental strategic forces relative to a company’s strengths and weaknesses

A

Strategy formulation

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18
Q

It is concerned with the overall direction of a company and is considered the general or grand strategy of the company

A

Corporate strategy

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19
Q

A corporate strategy that accompany may adopt if it aims to expand its present operating activities

A

Growth strategy

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20
Q

Occurs when a company expands its operation domestically, or globally

A

Internal growth

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21
Q

Happens when a company enters into mergers, acquisitions or strategic alliances

A

External growth

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22
Q

Is appropriate to adapt when a company can reasonably determine that its current product lines have real growth potentials finish

A

Concentration strategy

23
Q

Results in a horizontal integration where a Company operates in various geographic locations

A

Horizontal growth strategy

24
Q

A company ships goods to other foreign countries

A

Exporting

25
Q

A company enters into an agreement with another company from another country to produce or sell the products of the former

A

Licensing

26
Q

A company enters into an agreement with a franchise, or do use the name and system of the latter

A

Franchising

27
Q

A company combines its resources with other companies from foreign countries to produce new products

A

Joint venture

28
Q

A company purchases a foreign company

A

Acquisition

29
Q

A company constructs its own plant and invest with other assets in a foreign country

A

Green-field development

30
Q

A Company constructs operating facilities and transfers the same to the host country when completed

A

Turnkey operations

31
Q

A company constructs facilities, operates them when completed, and turns them over to the host country

A

BOT (build, operate, transfer) scheme

32
Q

A company takes over the functions of a supplier and a distributor

A

Vertical growth strategy

33
Q

A company takes 100% control of the value chain

A

Full integration

34
Q

A company acquire is not more than 50% of its requirements from outsiders

A

Taper integration or backward integration

35
Q

A company purchases most of its requirements from outsiders

A

Quasi-integration or forward integration

36
Q

A company enters into an agreement with other companies to provide the goods to each other over a specified period of time

A

Long-term contracts

37
Q

An appropriate growth strategy when the original industry appears to have matured, plateaud and consolidated already

A

Diversification strategy

38
Q

More appropriate in a less attractive industry in for a company with a strong competitive position

A

Concentric diversification strategy

39
Q

Happens when a company enters another industry, which is not related to the industry where it presently belongs

A

Conglomerate diversification strategy

40
Q

A company plans to continue its current activities without substantial change in its direction

A

Stability strategy

41
Q

A company takes a temporary time out from its major activities while observing changes in its external environment

A

Pause or proceed-with-caution strategy

42
Q

When an industry is not facing turbulent variables, and the company is enjoying the fruits of its continued successful activities

A

No-change strategy

43
Q

A temporary plan for a company and its desire to increase its profits when revenues are declining

A

Profit strategy

44
Q

The strategy to be adapted when a company experiences poor competitive position and operating performance and competitive advantage

A

Retrenchment strategy

45
Q

Is adapted when a company is not yet critically bleeding financially

A

Turnaround strategy

46
Q

Is adopted by a company that has a weak competitive position in an industry, and does not have the capability to implement a complete turnaround strategy

A

Captive company strategy

47
Q

Implies that a business is selling the entire company, including all the business units in divisions

A

Sell out

48
Q

Occurs when a company only sells its division or business unit that does not operate profitably

A

Divestment

49
Q

This strategy is adopted when a company has a weak competitive position in an industry and is not able to look for a strong partner to whom its business unit can be a captive.

A

Sell-out or divestment strategy

50
Q

Is adapted when a company that is suffering heavy losses terminates its operations

A

Bankruptcy or liquidation strategy

51
Q

A company gives up its management to a court and settles some financial obligations in return.

A

Bankruptcy

52
Q

Involves the conversion of non-cash assets to cash through selling to settle financial obligations

A

Liquidation

53
Q

It is intended for the gathering of reliable and relevant information as a basis, when making a sound forecast about an industry, and the capability of a company to exploit its resources for competitive advantage

A

Conduct a critical environmental analysis

Strategic Management (6 decks)

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