CHAPTER 1 Flashcards
The formulation of organizational objectives, competitive scopes, and action plans for gaining advantage.
STRATEGY
The plan that changes incrementally due to environmental changes.
EMERGENT STRATEGY
The formulated plan.
INTENDED STRATEGY
The implemented plan.
REALIZED STRATEGY
Strategy that is deemed inappropriate due to changing circumstances.
DISCARDED STRATEGY
2 strategic types:
- CORPORATE STRATEGIES
- BUSINESS STRATEGIES
3 corporate strategy options:
- RESTRUCTURING
- GROWTH
- STABILITY
4 restructuring options:
- TURNAROUND
- DIVESTITURE
- LIQUIDATION
- BANKRUPTCY
An attempt to increase the viability of an organization.
TURNAROUND STRATEGY (OR RETRENCHMENT STRATEGY)
The sale of a division or part of an organization.
DIVESTITURE
The termination of a business and the sale of its assets.
LIQUIDATION
A formal procedure in which an appointed trustee in bankruptcy takes possession of a business’ assets and disposes of them in an orderly fashion.
BANKRUPTCY
3 ways growth can be achieved:
- INCREMENTALLY
- INTERNATIONALLY
- MERGERS AND ACQUISITION
Attained by expanding the client base, increasing the products or services, changing the distribution networks, or using technology.
INCREMENTAL GROWTH
Attained by seeking new customers or markets by expanding internationally.
INTERNATIONAL GROWTH
The purchase of one company by another.
ACQUISITION
Two organizations combine resources and become one.
MERGER
Maintaining status quo or temporary strategy until environmental conditions are more favorable for growth.
STABILITY STRATEGY
Corporate-wide plans used to manage and control various units that exist within an organization.
CORPORATE STRATEGY
Plans to build a competitive focus in one line of business.
BUSINESS STRATEGY
Describes the organization’s future direction, performance targets, and approaches to achieve the targets.
STRATEGIC PLAN
7 steps in strategic planning:
- ESTABLISH THE MISSION, VISION, AND VALUES
- DEVELOP OBJECTIVES
- ANALYZE THE EXTERNAL ENVIRONMENT
- IDENTIFY THE COMPETITIVE ADVANTAGE
- DETERMINE THE COMPETITIVE POSITION
- IMPLEMENT THE STRATEGY
- EVALUATE THE PERFORMANCE
An articulation of the purpose of the organization and the value it creates for customers.
MISSION STATEMENT
Defines an organization’s long-term goals uniting the organization’s efforts.
VISION STATEMENT
The basic beliefs that govern individual and group behavior in an organization.
VALUES
The characteristics of a firm that enable it to earn higher rates of profit than its competitors.
COMPETITIVE ADVANTAGE
A complex combination of people and processes that represent the firm’s capacity to exploit resources that have been specially integrated to achieve a desired result.
CAPABILITIES
4 criteria for a sustained competitive advantage:
- VALUABLE
- RARE
- INIMITABLE
- ORGANIZED
Resources and capabilities that serve as a firm’s competitive advantage.
CORE COMPETENCIES
The ability to adapt and renew competencies in accordance with changing business environment.
DYNAMIC CAPABILITIES
A statement of the fundamental benefits of the products or services being offered in the marketplace.
VALUE PROPOSITION
The process by which a strategy is put into action.
STRATEGY IMPLEMENTATION
The steps or activities necessary to accomplish a goal.
PROGRAM
The steps required to get a job done.
PROCEDURES
