Chapter 8 Flashcards
identifying and selecting appropriate goals and courses of action; one of the four principle functions of management
planning
a cluster of decisions about what goals to pursue, what actions to take, and how to use resources to acheive goals
strategy
a broad declaration of an organizations purpose that identifies the organizations products and customers and distinguishes the organization from its competitors
mission statement
top managements decisions pertaining to the organziations mission, overall strategy, and structure
corporate level plan
a plan that indicates in which industries and national markets an organization intends to compete
coporate level strategy
divisional managers decisions pertaining to divisions long term goals overall strategy and structure
business level plan
a plan that indicates how a division intends to compete gainst its rivals in an industry
business level strategy
funtional managers decisions pertaining to the goals that they propose to pursue to help the division attian its business level goals
functional level plan
a plan that indicates how functional managers intend ot increase the value of the organizations goods and services
functional level strategy
the intended duration of a plan
time horizon
the generation of multiple forecasts of futureconditions followed by an analysis of how to respnd effecivey to each of those conditions
scenario planning
the ability of the ceo and top managers to convey a compelling vision of what they want the organization to acheive to their subordinates
scenario leadershiop
the develpment of a set of coporate, business, and functional strategies that allow an organization to accomplish its mission and acheive its goals
scenario formulation
a planning exercise in which managers identify organizationa strengths and weaknessess and environmental opportunies and threats
SWOT analysis
permanent ongoing intense competition brought about in an industry by advancing technology or changing customer tastes
hyper competition
driving the organizations cost down below the costs of its rivals
low cost strategy
distinguishing an organzitions productws from the products of competitiors on dimensions such as product design, quality, or after sales service
differientiation strategy
serving only one segment of the overall market and trying to the lowest cost organiziation serving that segment
focused low cost strategy
serving only one sgment of the overall market and trying to be the most differentiatied organziation serving that segment
focused differentiaiton strategey
reinvesting a companys profits to strengthen its competitive position in its current industry
concentration on a single industry
expanding a companys operations either backward into an inudstry that produces inputs for its products or forward into an industry that uses, distributes, or sells its products
vertical integration
expanding a companys business operations into a new industry in order to produce new kinds of valuable goods and services
diversification
entering a new business or industry to create a competitive advantage in one or more of an organiztions existing divisions or businesses
related diversifiction
performance gains that result when individuals and departments coordinate their actions
synergy
entering a new industry or buying a company in a new industry that is not realted in any way to an orgnizaitons currenct busienesses or industrires
unrelated diversification
selling the same stadarized product and sing th same baisc marketing approach in each national market
global strategy
cutomizing products and marketing strategies to specific national conditions
multi domestic strategy
making products at home and selling them abroad
exporting
selling at home products that are made abroad
importing
