Chapter 5 Flashcards
What is corporate strategy?
defines the business in which a company competes, uses resources to convert distinctive competence into competitive advantage
What is a business level strategy?
how a firm competes in a given industry and positions itself against competitors (between their individual business units)
What is a functional level strategy?
centers on how resources allocated to functional areas can be used to support business level strategy
Explain RACMI
Responsible: analyze and make initial reccommendation
Approve: accepts or vetoes decision
Consult: asked for input, but no veto power
Implement: implement and notify others
Inform: informed of decision
What are the 4 components of a business model?
customer interface
core strategy
strategic resources
value network
Explain customer interface
Fulfillment and support
Information and insight
Relationship dynamics
Pricing structure
Explain core strategy
Business mission → overall objectives, course, direction
product/market scope → where we compete
Basis for differentiation
Explain strategic resources
Core competencies
Strategic assets → patents, data, etc
Core processes → transform competences/assets into value
Explain value network
Suppliers, strategic alliance partners, coalitions
6 fundamentals for a distinctive strategic positioning
profit, unique value, distinct value chain, tradeoff, fit, strong relationships
3 priorities for marketing excellence
marketing ecosystem, end user, marketing agility
2 methods used to translate strategy
Balanced scorecard, strategy map
Explain financial on scorecard
degree of increasing profits
track ROI, revenue growth, etc
Explain customer on scorecard
target market and value propostion
track market share , customer acquisition, retention, satisfaction
What is low total cost strategy?
attractive prices, excellence quality, and responsive service
