Chapter 7 Flashcards
Acquisition
the purchase of a company that is completely absorbed by the acquiring corporation
Backward Integration
assuming a function previously provided by a supplier
Bankruptcy
a retrenchment strategy that forfeits management of the firms to the courts in return for some settlement of the corporation’s obligations
BCG Growth Share Matrix
a simple way to portray a corporation’s portfolio of products or divisions in terms of growth and cash flow
BOT Concept
a type of international entry option for a company.
Captive Company Strategy
Dedication a firm’s productive capacity as primary supplier to another company in exchange for a long term contract
Cash Cows
a product that brings in far more money that is needed to maintain its market share
Concentration
a corporate growth strategy that concentrates a corporation’s resources on competing in one industry
Concentric Diversification
a diversification growth strategy in which a firm uses it current strengths to diversify into related products in another industry
Conglomerate Diversification
a diversification growth strategy that involves a move into another industry to provide products unrelated to its current products
Corporate Parenting
a corporate strategy that evaluates the corporation’s business units in terms of resources and capabilities that can be used to build business unit values as well as generate synergies across business units
Corporate Strategy
a strategy that states a company’s overall direction in terms of its general attitude toward growth and the management of its various business and product lines
Directional Strategy
a plan that is composed of three general orientations: growth, stability, and retrenchment
Diversification
a corporate growth strategy that expands product lines by moving into another industry
Divestment
a retrenchment strategy in which a division of a corporation with low growth potential is sold
Dogs
have low market share and do not have the potential to bring in much cash
Exporting
shipping goods produced in a company’s home country to other countries for marketing
Forward Integration
assuming a function previously provided by a distributor
Franchising
an international entry strategy in which a firm grants rights to another company/individual to open a retail store using the franchiser’s name and operating system
Full Integration
a growth strategy under which a firm makes 100% of its key suppliers internally and completely controls its distributors