Chapter 8 - Strategy Formulation: Functional Strategy and Strategic Choice 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 makes the best use of corporate human assets.
Human resource management (HRM) strategy
A functional strategy that uses information systems technology to provide competitive advantage.
Information technology 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 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
is purchasing from someone else a product or service that had been previously provided internally.
Outsourcing
Determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, the deployment of physical resources, and relationships with suppliers.
Operations strategy
A strategy to influence a corporation’s stakeholders.
Political strategy
