Chapter 2 Flashcards
Strategy
the series of tactics or tasks that
a company undertakes to attain the vision
of the company
Vision
a company’s purpose and the ultimate destination it hopes to reach, acting as a guide to individuals in an
organization
Mission
an organization’s purpose and
why it exists
Cost strategy
the use of a process or
method to produce a product or service
of acceptable comparable quality at consistently lower production expenses than competitors can, so that the firm can be profitable in a commodity or
undifferentiated industry
Differentiation
what is provided by a product or service that is sufficiently different, in an important aspect, from
competitors’ offerings that customers will choose that product or service
Focus strategy
using focus cost or focus
differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular
geographic region, demographic strata, or
market segmen
Competitive inertia
a reluctance to
change strategies or competitive practices
that have been successful in the past
Strategic dissonance
a discrepancy
between a company’s intended strategy
and the strategic actions managers take
when implementing that strategy
Situational analysis (SWOT analysis)
an assessment of the strengths and weaknesses in an organization’s
internal environment and the opportunities
and threats in its external environment
Distinctive competency what a
company can make, do, or perform better
than its competitors
Core capabilities the internal decision-
making routines, problem-solving
processes, and organizational cultures that
determine how efficiently inputs can be
turned into outputs
Distinctive competency
what a company can make, do, or perform better than its competitors
Core capabilities
the internal decision- making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be
turned into outputs
