Chapter 7 Flashcards
is a comprehensive plan guiding resource allocation to achieve long-term organization goals
strategy
focuses organization al energies on achieving a compelling goal
strategic intent
is an ability to outperform rivals
competitive advantage
is achieved in ways that are difficult to imitate
sustainable competitive advantage
sets long-term direction for the total enterprise
corporate strategy
identifies how a division or strategic business unit will compete in its product or service domain
business strategy
guides activities within one specific area of operations
functional strategy
involves expansion of the organization’s current operations
growth strategy
growth by expansion within a existing business area
concentration
growth by expansion by entering related or new business areas
diversification
growth by acquiring suppliers or distributors
vertical integration
changes in operations to correct weaknesses
retrenchment strategy
occurs when a business closes and sells it’s assets to pay creditors
liquidation
reduces the scale or mix of operations
restructuring
protects an insolvent firm from creditors during a period of reorganization for restore profitability
Chapter 11 bankruptcy
decreases the size of operations
downsizing
involves selling off parts of the organization to refocus attention on core business areas
divestiture
adopts standardized products and advertising for use worldwide
globalization strategy
tries to operate globally with out having a strong national identity
transnational firm
organizations join together in partnership to pursue an area of mutual interest
strategic alliance
is the strategy of working with rivals on projects of mutual benefit
co-opitition
strategically uses the internet to gain competitive advantage
e-business strategy
uses IT and web portals to link organizations vertically in supply chains
B2B business strategy
uses IT and web portals to link businesses to customers
B2C business strategy
uses social media to better engage with an organization’s customers clients and external audiences in general
social media strategy
strategy uses the internet to engage customers and potential customers in providing opinions and suggestions on products and their designs
crowdsourcing
is the process of formulating and implementing strategies
strategic management
is the process of creating strategies
strategy formulation
is the process of purring strategies into action
strategy implementation
is the organization;s reason for existence in society
mission
are specific results that organizations try to accomplish
operating objectives
is a special strength that gives an organization a competitive advantage
core competency
offers products that are unique and different form those of the competition
differentiation strategy
seeks to operate with lower costs than competitors
cost leadership strategy
offers a unique product to a special market segment
focused differentiation strategy
seeks the lowest costs of operations within a special market segment
focused cost leadership strategy
examines organizational strengths and weaknesses as well as environmental opportunities and threats
SWOT analysis
analyzes business opportunities according to market growth rate and market share
BCG Matrix
inspires people to implement organizational strategies
strategic leadership
makes sure strategies are will implemented and that poor strategies are scrapped or changed
strategic control
