Chapter 9 Flashcards
What managers do to develop the organization’s strategies
Strategic Management
Plans for how the org will do whatever it takes to thrive in business, compete, how it will attract and satisfy its customers to achieve its goals
Organization’s Strategies
A term often used in strategic management, it is a vital framework about how a company is going to make money
Business Model
A six step process that involves strategy planning, implementation, and evaluation.
Strategic Management Process
skills and abilities in doing the work activities needed in its business
Capabilities
major value-creating capabilities of an organization
Core Competencies
activities the organization does well or any unique resources
Strengths
activities the organization doesn’t do well or resources it needs but doesn’t possess
Weaknesses
Combined external and internal analyses
SWOT analysis
One that determines what business a company is in or wants to be in, and what it wants to do with those businesses
Corporate Strategy
What Are the Types of Corporate Strategy
1) Growth Strategy 2) Stability Strategy 3) Renewal Strategy
when an organization expands the number of markets served or products offered, either through its current businesses or through new businesses
Growth Strategy
is a corporate strategy in which an organization continues to do what it is currently doing
Stability Strategy
addresses declining performance
Renewal Strategy
This matrix provides a framework for understanding diverse businesses and helps managers establish priorities for allocating resources
corporate portfolio matrix
developed by the Boston Consulting Group, introduced the idea that an org’s various businesses could be evaluated and plotted using a 2x2 matrix to identify which ones offered high potential and which were a drain on org resources.
BCG Matrix
A strategy for how an organization will compete in its businesses
Competitive Strategy
Model with Five competitive forces that dictate the rules of competition
Porter’s Five Forces Model
when an organization competes on the basis of having the lowest costs
Cost leadership strategy
company that competes by offering unique products that are widely valued by customers is following this
Differentiation strategy
involves a cost advantage or a differentiation advantage in a narrow segment or niche
Focus strategy
The ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization
strategic leadership
used by an organization’s various functional departments to support the competitive strategy
Functional strategies
managers use this type of strategy to develop a sustainable competitive advantage
e-Business Strategies
Managers should know what is going on with customers, what they liked and didn’t like about their purchase encounter
Customer Service Strategies
Not focused on just radical, breakthrough products but, they can include applying existing technology to new uses
Innovation Strategies
first to bring a product innovation to the market or new process
First Mover
