Chap 9: Functional Level Strategy Flashcards
Intended to maximize the resource productivity of a company so that the value is created as perceived by customers
Functional level strategy
Deliver customer-value products
Marketing strategies
Maximize the financial value of a company
Financial strategies
Guide the development and implementation of various programs
Human resource strategies
Reconcile a company’s resources and market requirements
Production and operations strategies
Maximize resource productivity
Functional level strategy
Gain a competitive position in an industry
Business level strategy
Provide the overall direction of a company
Corporate level strategy
The marketing logic by which a company hopes to create customer value and achieve profitable customer relationships
Marketing strategy (Kotler and Armstrong, 2013)
Dictates the marketing strategy that is adapted by a company based on its competitive position in the market
Competitive position strategy
There’s a company that has the largest share in the market
Market leader
In this strategy, the market leader expands the demand by developing new users or promoting new usage of a product
Expand total demand strategy
Adopted by the market leader, when it continuously innovates, and fixes its weaknesses to avoid competitors from taking opportunities
Protect market share strategy
It is the desire of the market leader to expand its market share when it offers superior quality products, builds close customer relationships, and creates good service experiences with customers
Expand market share strategy
A company that has a marketshare lower than that of the market leader
Market challenger
Attacks the strength of the market, leader, and other competitors not their weaknesses. It matches the market leader’s product, price and distribution system.
Full frontal attack strategy
Market challenger of words attacking the strength of the market leader. Instead, it works against the weaknesses of the market leader.
Indirect attack strategy
A company that simply follows the market leader, or challenger, instead of attacking them
Market follower
In this strategy, the market, followers studies and learns from the experiences of the market leader by improving the market leader’s products and programs at a lower cost
Follow closely strategy
The market follower in this strategy simply holds on to its current customers and tries win new customers fairly as a way of avoiding retaliation from the market challenger
Follow at a distance strategy
A company that provides the needs of a small segment in the market, which has not been given a preference yet by the market leader or challenger
Market nicher
In this strategy, a market nicher can specialize in one type of end-user group or specific customers
Specialization niching strategy
A market niche with multiple niching strategy as its competitive position strategy serves two or more market niches
Multiple niching strategy
Refers to the buyers of a product or service, not the place where a seller and the buyer meet. They can be actual or potential buyers
Market
This strategy is designed to determine the customers to be served and the manner in which they are to be served
Market identification strategy
This strategy aims to divide the market into distinct groups of buyers who have different behaviors, characters, and needs
Segmentation strategy
This strategy is designed to identify the particular group of customers to be served
Targeting strategy
This is concerned with the way customers are served
Positioning strategy
In this strategy, the markets and the products are classified either as existing or new
Market-product growth strategy
This strategy is adopted by a marketing functional unit when it aims to improve a company’s sales through the rigorous selling of existing products to the current market segment
Market penetration strategy
This strategy aims to improve a company’s sales through the sale of existing products to new markets
Market development strategy
A company plans to grow by selling new products to existing market segments
Product development strategy
A company plans to grow by entering a new market with new product lines
Diversification strategy
An important factor in the struggles of a company to achieve a competitive advantage in an industry
Pricing strategy
Introducing new products to the market
New product pricing strategy
This strategy allows a company to set a high, initial price for its product to obtain the highest possible revenue
Skimming pricing strategy
In this strategy, a company sets a low initial price for its product so that it can easily penetrate and gain a considerable share in the market
Penetration pricing strategy
A set of product lines or items offered by seller for a single price
Product-mix or product portfolio
The price between various products in a product line is set based on cost difference, customer evaluation, and competitor’s price
Product line pricing strategy
This pricing strategy is adapted when there are accessories that can be added to the main product
Optional product line pricing strategy
A certain product must be used with other products
Captive product pricing strategy
Adopted when producing the main product results in a byproduct with a saleable value
Byproduct pricing strategy
Products are offered to the market as a bundle with one collective price
Product bundle pricing strategy
The plans for a company’s activities, intended to communicate its products to target customers and persuade them to purchase them
Promotion and distribution marketing strategies
A promotion strategy that makes use of distribution channels in promoting and selling a product
Bush strategy
A promotion strategy that is used when a company, heavily engages in advertising and customer promotion to influence a buyer the purchase of product
Pull strategy
The sales force presents the products to customers to make sales and at the same time build strong customer relationships
Personal selling strategy
A company distributes, or sells goods or services directly to final consumers for their personal use
Retailing strategy
Plans to distribute or sell goods and services to companies that are buying for resale
Wholesaling strategy
To deliver customer value products
Marketing strategies
To set plans based on the role of a company in a market
Competitive position strategies
To determine grows in a target market
Market strategies
To set competitive prices for a fair return
Pricing strategies
To influence a buyer to purchase
Promotion and distribution strategies
This unit, in coordination with the middle and top level management is largely responsible for the formulation of financial strategies
Finance unit
A strategic plan that seeks to determine how a company supports the financial requirements of its operating activities and its current assets and fixed asset acquisition
Financing strategy
The fixed assets of a company and part of its permanent current assets are financed by long-term debt, equity, and spontaneous current liabilities
Aggressive financing strategy
A company borrows a significant amount of funds to acquire another company, using the assets of the acquired company as collateral and some of its own
Leveraged buyout
The total assets of a company are financed by long-term debt, equity and spontaneous current liabilities
Conservative financing strategy
A financing plan that funds all temporary current assets with short term nonspontaneous debt
Maturity matching financing strategy
Concerned with the management of the investment portfolio of a company returns at certain levels of risks
Investing strategy
Reflects how a company manages or handles its investment portfolio at a particular level of risk
Management strategy
A company places its investment portfolio when market prices are rising and giving higher returns. It is the strategy adapted for the bull market.
Passive management strategy
A company places its investment portfolio when market prices are falling with a shorter cycle. This strategy is employed during the bear market.
Active management strategy
A company invest funds in a mixture of assets that have low correlation to each other to optimize its return on assets and risk level
Asset allocation strategy
A company employs the strategic asset allocation strategy when it has fixed the allocation of its investment portfolio
Strategic asset allocation strategy
The portfolio mix is changed when market conditions change
Tactical asset allocation strategy
Portfolio mix is returned to its original allocation to realize, gains from investments and expand growth opportunities in high value securities
Portfolio rebalancing
Purchases assets that are offered at a discounted price which gives the intrinsic value of the investment
Value investing strategy
A company purchases assets or companies that have above average earnings growth not withstanding their valuation and the type of assets acquired
Growth stock investing strategy
When a company buys securities that have average earnings in a short period of time and cells those that have poor growth
Momentum investing strategy
An organizational plan about a company’s human resource policies and practices, and the way they integrate with other functional areas
Human resource strategy
A broad and encompassing strategy that is concerned with the overall effectivity of a company in terms of human resources so people are managed developed, attracted and retained
Overarching human resource strategy
A plan that defines what a company intends to do in various specific areas of human resource management
Specific human resource strategy
This human resource strategy focuses on the improvement of the processes that support the achievement of a company’s goals and the development of positive culture
Organizational effectiveness strategy
This strategy aims to develop or improve the preparation and implementation of organizational development plans
Organizational development strategy
This strategy plans to radically change a company’s structure, culture and processes as a response to competitive pressure brought by changes in the market, technology, product lines, and business acquisitions
Organizational transformation strategy
It is the strategic human resource management plan designed to identify the ways a company can manage the changes in its culture from depressants date to the desirable future state
Culture management strategy
In this strategy, the company aims to acquire, use, and transfer knowledge effectively to achieve competitive advantage
Knowledge management strategy
This strategy aims to develop communication, education, training, and involvement, as a way of increasing rewards and motivation, among employees for their commitment to the company
Commitment strategy
Intends to develop or build trust, which is considered the sound ground to generate commitment
Climate of trust strategy
This strategy is intended to create and maintain a quality oriented, culture and standards to meet the expectations of customers
Quality management strategy
The aim of this strategy is to improve and sustain the quality and reliability of products and services over a period of time
Continuous improvement strategy
This strategy plans to achieve excellence in service in terms of delivering promises, resolving customers problems, post sale infrastructure, and customer focused systems
Customer service strategy
Concerned with meeting the requirements of a company in terms of skills, talents, and behavior
Resource strategies
