Chapter 5 Flashcards
BCG matrix
A concept developed by the Boston Consulting Group that evaluates SBUs with respect to two dimensions—business growth rate and market share—and classifies them as cash cows, stars, bright prospects, or dogs
Coalitional management
Building an alliance of people who support a manager’s goals and influencing other people to accept and work toward those goals
Competitive advantage
What sets the organization apart from others and provides it with a distinctive edge in the marketplace
Contingency plans
Identifies important factors in the environment and defines a range of alternative responses to be taken in the case of emergencies, setbacks, or unexpected conditions
Core competence
Something that the organization does particularly well in comparison to others
Cost leadership strategy
Managers aggressively seek efficient facilities, cut costs, and use tight cost controls to be more efficient than others in the industry
Differentiation strategy
Managers seek to distinguish the organization’s products and services from those of others in the industry
Diversification
The strategy of moving into new lines of business
Focus strategy
Managers use either a differentiation or a cost leadership approach, but concentrate on a specific regional market or buyer group
Goal
A desired future circumstance or condition that the organization attempts to realize
Joint venture
A strategic alliance or program by two or more organizations
Key performance indicators (KPIs)
Measures that reflect how well lower-level goals are helping the organization progress toward attaining its strategic goal
Management by means (MBM)
A recent approach that focuses people on the methods and processes used to attain results, rather than on the results themselves
Management by objectives (MBO)
A method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance
Merger
Two or more organizations combine to become one
Mission
An organization’s purpose or reason for existence
Mission statement
A broadly stated definition of the organization’s basic business scope and operations that distinguishes it from similar types of organizations
Operational goals
Specific, measurable results that are expected from departments, work groups, and individuals
Operational plans
Specific action steps toward achieving operational goals and supporting tactical activities
Plan
A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals
Planning
The act of determining goals and defining the means of achieving them
Portfolio strategy
Seeks to establish a mix of SBUs and product lines that fit together in a logical way to provide synergy and competitive advantage
Related diversification
Moving into a new business that is related to the corporation’s existing business activities
Scenario building
Managers look at trends and discontinuities and imagine possible alternative futures
to build a framework within which unexpected future events can be managed