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
A marketing strategy in which a company or unit develops new products for existing markets or develops new products for new markets.
Product development
deals with obtaining the raw materials, parts, and supplies needed to perform the operations function.
Purchasing strategy
deals with product and process innovation and improvement
R&D strategy
An approach to new project investment when the future is highly uncertain.
Real options approach
A chart that categorizes stakeholders in terms of their interest in a corporation’s activities and their relative power to influence the corporation’s activities.
Stakeholder priority matrix
The evaluation of strategies and selection of the best alternative.
Strategic choice
A functional strategy that deals with the flow of products into and out of the manufacturing process.
Logistics strategy
A company that imitates the products of competitors.
Technological follower
A company that pioneers an innovation.
Technological leader
