Chapters 8-14 Flashcards
Functional resources
The skills possessed by an organization’s functional personnel.
Strategy
The specific pattern of decisions and actions that managers take to use core competences to achieve a competitive advantage and outperform competitors.
Core competences
The skills and abilities in value- creation activities that allow a company to achieve superior efficiency, quality, innovation, or customer responsiveness.
Organizational resources
The attributes that give an organization a competitive advantage such as the skills of the top-management team or possession of valuable and scarce resources.
Coordination ability
An organization’s ability to coordinate its functional and organizational resources to create maximal value.
Functional-level strategy
A plan of action to strengthen an organization’s functional and organizational resources, as well as its coordination abilities, in order to create core competences.
Business-level strategy
A plan to combine functional core competences in order to position the organization so that it has a competitive advantage in its domain.
Corporate-level strategy
A plan to use and develop core competences so that the organization can not only protect and enlarge its existing domain but can also expand into new domains.
Global expansion strategy
A plan that involves choosing the best strategy to expand into overseas markets to obtain scarce resources and develop core competences as discussed above.
Low-cost business-level strategy
A plan whereby an organization produces low- priced goods and services for all customer groups.
Differentiation business- level strategy
A plan whereby an organization produces high- priced, quality products aimed at particular market segments.
Vertical integration
A strategy in which an organization takes over and owns its suppliers (backward vertical integration) or its distributors (forward vertical integration).
Related diversification
The entry into a new domain that is related in some way to an organization’s domain.
Unrelated diversification
The entry into a new domain that is not related in any way to an organization’s core domain.
Conglomerate structure
A structure in which each business is placed in a self- contained division and there is no contact between divisions.
Technology
The combination of skills, knowledge, abilities, techniques, materials, machines, computers, tools, and other equipment that people use to convert or change raw materials into valuable goods and services.
Mass production
The organizational technology that uses conveyor belts and a standardized, progressive assembly process to manufacture goods.
Craftswork
The technology that involves groups of skilled workers who interact closely to produce custom-designed products.
Programmed technology
A technology in which the procedures for converting inputs into outputs can be specified in advance so that tasks can be standardized and the work process can be made predictable.
Technical complexity
A measure of the extent to which a production process can be programmed so that it can be controlled and made predictable.
Technological imperative
The argument that technology determines structure.
Task variability
The number of exceptions— new or unexpected situations—that a person encounters while performing a task.
Task analyzability
The degree to which search activity is needed to solve a problem.
Task interdependence
The manner in which different organizational tasks are related to one another.
Mediating technology
A technology characterized by a work process in which input, conversion, and output activities can be performed independently of one another.
Long-linked technology
A technology characterized by a work process in which input, conversion, and output activities must be performed in series.
Slack resources
Extra or surplus resources that enhance an organization’s ability to deal with unexpected situations.
Intensive technology
A technology characterized by a work process in which input, conversion, and output activities are inseparable.
Specialism
Producing only a narrow range of outputs.
Dedicated machines
Machines that can perform only one operation at a time, such as repeatedly cutting or drilling or stamping out a car body part.
How can global expansion allow an organization to create value for its stakeholders? (4 steps)
Transferring core competencies abroad, Establishing a global network, gaining access to global resources and skills, using global learning to enhance core competencies
Technologies role in the input stage
Technology is used to allow each organizational function to handle relationships with outside stakeholders so that the organization can effectively manage its specific environment.
Technologies role in the conversion stage
Technology transforms inputs to outputs. Effective technology allows the organizations conversion stage to transform the inputs to outputs at the least cost of organizational resources
Technologies role in the output stage
Technology allows an organization to effectively dispose of finished goods and services to external stakeholders. To be effective in this process with technology, it should be able to possess competences in testing the quality of the finished product, in selling and market selling the product, and in managing the after-sales services to customers.
Describe factors of the small-batch and unit technology complexity
a. Organic Structure
i. Flat structure
ii. 3 levels in hierarchy
iii. Decentralized decision making
b. One-of-a-kind products
c. More customized
d.High flexibility
Describe factors of the large-batch and mass production technology complexity
a. Mechanistic Structure
i. Taller structure
ii. 4 levels in hierarchy
iii. Centralized Decision making
iv. Vertical communication increases
b. Products are more standardized
c. Technical Complexity increases to improve Efficiency and predictability
Describe the factors in the continuous process technology
a. Organic Structure
i. Tallest structure
ii. 5 levels in hierarchy
b. Firms are the most dependent on technology- Highly complex
c.Employees are not fully involved- Predictable
Describe Joan Woodward’s theory on high technical complexity and low technical complexity.
High technical complexity- when the conversion process can be programmed in advance and fully automated. Standardized and predictable.
Low technical complexity- when the conversion process depends primarily on people and their skills and knowledge, less on machinery. Unstandardized and unpredictable.
Focus Strategy
This is another known business-leveled strategy. This is where the organization would allocate and focus all of their resources on one segment of a market.
Differentiation strategy factors
Complex structure, decentralized decision making, high differentiation, high integration, organic structure
Low Cost Strategy factors
Simple structure, centralized decision making, low differentiation, low integration, mechanistic structure.
Multidomestic strategy
Focused towards local responsiveness- a company would decentralize their control to subsidiaries and divisions in each country in which it operates to produce and customize products to to local markets.
