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.