Chapter 8 Flashcards
A situation in which all parties agree to one alternative.
Consensus
Pro forma balance
sheets and income statements that forecast
the effect that each alternative strategy will
likely have on return on investment.
Corporate scenario
An individual or a group
assigned to identify the potential pitfalls and
problems of a proposal.
Devil’s advocate
A decision-making
technique that requires that two proposals
using different assumptions be generated for consideration.
Dialectical inquiry
A functional strategy to
make the best use of corporate monetary
assets
Financial strategy
An approach taken by a
functional area to achieve corporate and business unit objectives and strategies by maximizing resource productivity
Functional strategy
A functional strategy that uses information systems
technology to provide competitive advantage.
Information technology strategy
A functional strategy that makes the
best use of corporate human assets.
Human resource management (HRM)
strategy
An acquisition in which
a company is acquired in a transaction financed largely by debt—usually obtained
from a third party, such as an insurance company or an investment banker.
Leveraged buy-out
A functional strategy that
deals with the flow of products into and out
of the manufacturing process.
Logistics strategy
A marketing functional
strategy in which a company or business unit
captures a larger share of an existing market for
current products through market penetration
or develops new markets for current products.
Market development
A functional strategy
that deals with pricing, selling, and distributing a product
Marketing strategy
The outsourcing of an activity or
function to a provider in another country
Offshoring
A functional strategy
that determines how and where a product
or service is to be manufactured, the level
of vertical integration in the production
process, and the deployment of physical
resources
Operations strategy
A process in which resources
are purchased from others through long-term
contracts instead of being made within the
company.
Outsourcing
