Chapter 12 Flashcards
Global Strategy
Strategy Formulation
Process of deciding what to do; also called strategizing
Strategy Implementation
Process of performing all the activities necessary to do what has been planned
Business Strategy
The ways a firm goes about achieving its objectives within a particular business
International Strategy
Using corporate strategy to guide the choice of which markets, including different countries, that a firm competes in.
Importing
The sale of products or services in one country that are sourced in another country.
Outsourcing
Contracting with a third party to do some of a company’s work on its behalf
Offshoring
Taking some business function out of the company’s country of origin to be performed in another country, generally at a lower cost.
International Outsourcing
Outsourcing to a non domestic third party.
SWOT
Strengths
Weaknesses
Opportunities
Threats
SWOT: Strengths & Weaknesses
Good strategies take advantage of strengths and weaknesses and minimize the disadvantages posed by any weaknesses
Sustainable Competitive Advantage
A situation where an organization’s strengths cannot be easily duplicated or imitated by other firms.
SWOT: Opportunities & Threats
- Opportunities assess the external attractive factors that represent the reason for a business to exist and prosper.
- Threats include factors beyond your control that could place the strategy or even the business itself at risk.
Cost-Leadership Strategy
Firms seek to make their products or services at the lowest cost possible relative to their competitors while maintaining quality.
Differentiation Strategy
An integrated set of actions designed by a firm to produce or deliver goods or services that customers perceive as being different in ways that are important to them.
Vertical Scope
All the activities, from the gathering of raw materials to the sale of the finished product, that a business goes through to make a product.
