Chapter 2 Flashcards
1
Q
mission
A
statements tell an organisation where it is going
2
Q
strategy
A
tells the organisation how to get there
- action plan to achieve mission
3
Q
factors affecting mission
A
- customers
- environment
- philosophy and values
- profitability and growth
- public image
4
Q
strategies for competitive advantage
A
- differentiation - better or different (uniqueness)
- low cost leadership - cheaper (doesn’t necessarily mean low quality)
- response - rapid response (reliability, speed)
5
Q
resources view
A
potential strategy is compatible with resources
6
Q
value-chain analysis
A
identify activities that represent strengths, or potential strengths, and may be opportunities for developing competitive advantage
7
Q
five forces model
A
analysing the five forces
- immediate rivals
- potential entrants
- customers
- suppliers
- substitue products
8
Q
strategy development process
A
- Analyse the environment
- Determine the corporate mission
- form a strategy
9
Q
product life cycle
A
introduction-growth-maturity-decline
10
Q
Introduction
A
- product design and development critical
- frequent product and process design changes
- short production runs
- hight production costs
- limited models
- attention to quality
11
Q
Growth
A
- forecasting critical
- product and process reliability
- competitive product improvements and options
- increase capacity
- shift toward product focus
- enhance distribution
12
Q
Maturity
A
- standardisation
- less rapid product changes - more minor changes
- optimum capacity
- increasing stability of process
- long production runs
- product improvement and cost cutting
13
Q
Decline
A
- little product differentiation
- cost minimisation
- overcapacity in the industry
- eliminate items not returning good margin
- reduce capacity
