Insurer Strategic Management Flashcards
Mission statement
A broad expression of an entity’s goals
SWOT analysis
A meted of evaluating the internal and external environments by assessing an organization’s internal strengths and weaknesses and its external opportunities and threats
Functional structure
An organizational structure in which departments are defined by the operation they perform
Multidivisional structure
An organizational structure in which divisions are organized into separate profit centers
Cost leadership
A business-level strategy through which a company seeks cost efficiencies in all operational areas
Five Forces Model
A method of evaluating the external environment in which a company operates. Involves assessing five forces that drive competition: threat of new entrants, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers, and rivalry among existing firms
Trend analysis
An analysis that identifies patterns in past losses and then projects those patterns into the future
Vertical integration strategy
A corporate-level strategy through which a company either produces its own inputs or disposes of its own outputs
Related diversification strategy
A corporate-level strategy though which a company expands its operations into areas that are similar to its existing operations
Unrelated diversification strategy
A corporate-level strategy through which a company expands its operations into areas that have no relation to its existing operations
Harvest strategy
A corporate-level strategy through which a company seeks to gain short-term profits while phasing out a product line or exiting a market
Turnaround strategy
A corporate-level strategy through which a company rebuilds organizational resources to return to profitable levels
Divestiture strategy
A corporate-level strategy through which a company sells off a portion of an operation, usually a division or profit center that is not performing to expectations
Differentiation strategy
A business-level strategy through which a company develops products or services that are distinct and for which customers will pay a higher price than that of the competition
Focused cost leadership strategy
A business-level strategy through which a company focuses on one group of customers and offers a low-price product or service
