Exam 2: Strategies Flashcards
Strategy
A comprehensive plan guiding resource allocation to achieve long-term organization goals
Strategic Management Process (5)
- review current situation
- analyze organization and external environment
- develop new strategies
- implement strategies
- evaluate results
SWOT Analysis
- Internal assessment of organization
- What are our strengths/weaknesses? - External assessment of the environment
- What our our opportunities/threats?
Porters model
focus on creating competitive advantage
Cost leadership
lowest cost producer
Differentiation
product is unique
Focus
limited scope
Hypercompetition
Suggest speed and aggressiveness of the moves and countermoves in any given market create an environment in which advantages are rapidly created and eroded
3 examples of corporate strategies
- Activities or services-based strategy
- Capabilities-based strategy
- Time-based competition
Activities or service-based strategy
Identify the core services; focus on the core; outsource non-core (core=activities which define the business)
Capabilities bases strategy
Identify, develop and coordinate necessary capabilities for competitive advantage
Time based competition
Leadtime reduction
- fast to market
- fast to product
Fast to market
reduce design lead time (shorten product life cycles); vertical
Fast to product
Reduce delivery lead time; horizontal
Balancing the 2 dimensions of time
Successional; intentional
