Chapter 9 Class Lecture Flashcards
What is an international strategy?
A plan that guides the ways firms make choices about developing and deploying scarce resources to achieve their objectives being both externally and internally consistent.
What is internal consistency?
Consistency among the company’s various functions, products, and regional units.
What is external consistency?
Consistency with the demands of the international competitive environment.
What is competitive advantage?
The ability of a company to achieve and maintain a unique and valuable competitive position, generating higher rates of profit.
What characteristic should a company developed?
The ability to develop competencies that: create value for which customers are willing to pay, are rare, are difficult to imitate or substitute for, and that allow the firm to be organized to exploit these competencies.
What are advantages of strategic planning?
- ensures common understanding of business, strategy, assumptions behind strategy, environment, and direction.
- promotes consistency among the firm’s manager worldwide and encourages consideration on a global scale.
- increases the likelihood of strategic innovations.
What are the steps of strategic planning?
- Analyze the company’s external environment.
- Analyze the company’s internal environment.
- Define the company’s business and mission.
- Set corporate objectives.
- Quantify goals.
- Formulate strategies
- Make tactical plans
What is a value chain analysis?
An assessment conducted on the chain of an organization to determine the amount of value added.
What is knowledge management?
The practices that organizations and their managers use their identifying, creating, acquiring, dispersing, and exploiting competitively valuable knowledge.
What’s the difference between a mission statement and vision statement?
The mission statement is a broad statement of an organization’s purpose and scope while a vision statement is description of the company’s future position if it is possible.
