Exam II STUDY GUIDE Flashcards
Various Business Strategies:
- Porters Generic Strategies
- The miles and snow typology
- Product life cycle strategy
Porters Generic Strategy
- Differentiation Strategy: Seeks to distinguish itself from competitors
- Overall cost leadership strategy: Seeks to gain a competitive advantage by reducing its cost below the competitive firms.
- Focus Strategy: Concentrate on a specific regional market, product line or group of buyers.
Miles and Snow Typology
- Prospector strategy: Encourages creativity and flexibility.
- Defender strategy: Focuses on lowering cost and improving performance of current products.
- Analyzer Strategy: Maintains current business and is somewhat innovative in new business.
- Reactor Strategy: Has no consistent approach to strategy.
Product life cycle
Introduction, growth, maturity and decline.
What is operational improvement and how does it work?
- Spending more resources on research and development helps identify new products, new uses for existing products, and new methods for making products
- recurring transformation processes and facilities can boost productivity
What is the BCG metrics? How do we use it?
Is a method of evaluating businesses relative to the growth rate of their market and their organizations share market.
What is optimizations?
Involves balancing and reconciling possible conflicts among goals.
What is various decision making types?
- Coalition: is an informal alliance formed to achieved a common goal.
- Intuition is an imate belief about something without concsion deliberation.
- Risk propensity: is the extent to which a decision maker gambles when deciding.
Decision making models?
The classical decision model: Is a prescripted approach that tells managers how they should make decisions. Assumes that managers that managers are logical and rational and their decision will be in the best interest of the organization
Administrative model: Decision makers uses incomplete and imperfect information. are constrained by bounded rationality, and tent to “satisfice” when deciding.
How is operational managment used?
Is the total set of managerial activities used by an organization to tansform resources inputs into products services or both. They add value and create products and services.
Manufacturing transform inputs into tangible outputs.
A service organization transform resrouces into intangibles outputs.
What is strategic imitation?
Is duplicating anothers competence into a valuable strayegy. Copy and paste an idea.
What is capacity utilization?
involves choosing the amount of products, services are or both that can be produced. A critical decision based on demand.
What is backward vertical inegration? How does it work?
An organization conducts activities formerly conducted by uts costumers… direct marketing (controlling raw material for cheap products).
How do we define productivity and how does it work?
Is an economic measure of efficiency and summarizes what is produced relative to the source used to produce it.
- Aggreagte prod: Total level of productivity by a contry.
- Industry prod: Productivity achieved by all first of a industry.
- Company prod: Level achieved by an individual company.
- Unit or individual prod: Achieved by a department or an individual.
What is the labor production index?
LPI is compiled by dividing a real output index by labor input index. It shows how efficiently labor input is used for generating output.
