chapter 2 and 5s Flashcards
a plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole
strategy
the process of determining long-term goals, policies, and plans for an organization
strategic planning
plans for achieving organizational goals
strategies
where the organization is headed and what it intends to be
vision
the reason for existence for an organization
mission statement
– defines the culture an organization wants to create.
goals
provide detail and scope of mission
goals
: methods and actions taken to accomplish strategies
tactics
: defines the businesses in which the corporation will participate and develops plans for the acquisition and allocation of resources among those businesses
Businesses are often called Strategic Business Units (SBUs)
corporate strategy
defines the focus for the SBU and involves which markets to pursue and how best to compete in those markets
business strategy
the set of decisions that each functional area develops to support its particular business strategy
Operations, marketing, finance, R&D, engineering, etc
functional strategy
how an organization’s processes are designed and organized to produce the type of goods and services to support the business strategies
operations strategy
are narrow and short-term by comparison and act under the operation constraints set out by the strategic and tactical management decisions
operations decisions
primarily address how to efficiently manage capacity, inventory and schedules within the constraints of previously made strategic decisions
tactical decisions
are long-term decisions and concern the determination of broad policies and plans for using the resources of a company to best support its long-term competitive strategy
strategic decisions
a firm’s ability to achieve market and financial superiority over its competitors
competitive advantage
: the strategic emphasis that a firm places on certain performance measures and operational capabilities
Competitive Priorities/Dimensions
being able to make whatever goods and services the customer wants, at any volume, at any time for anybody, and for a global organization, from any place in the world
mass customization
requirements that are expected in a good or service.
dissatisfiers
requirements that customers say they want
satisfiers
: new or innovative good/service features that customers do not expect
Exciters/delighters
basic customer expectations (dissatisfiers and satisfiers) are generally considered the minimum performance level required to stay in business
order qualifiers
– goods/service features and performance characteristics (satisfiers and exciters) that cause customers to choose those over of its competitors and to win the customer’s business
Can be considered to be a competitive advantages for the firm
order winners
: quantifies the total revenue or profit each target market customer generates over the Buyers Life Cycle
Value of a Loyal Customer (VLC):
: individuals or companies that legally own one or more shares of stock in the company
shareholders
individuals or organizations who are influenced, either directly or indirectly, by the actions of the firm
stakeholders
being able to meet current needs without compromising the ability of future generations to meet their own needs
sustainability
managerial decision making that considers environmental, societal and financial impact
Corporate Social Responsibility (CSR):
pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm conducts is business
“People” (Social Responsibility)
the firm’s impact on the environment
Planet” (Environmental Stewardship)
the firm’s obligation to compensate shareholders who provide capital via competitive returns on investment
Profit” (Economic Prosperity):
