Key Terms Ch 4 Flashcards
The major actions by which a business competes in a particular industry or market
Business Strategy
A strategy employed for an organization that operates a single business and competes in a single industry
Concentration
A strategy used to add new businesses that produce related products or are involved in related markets and activities
Concentric Diversification
A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities
Conglomerate Diversification
A unique skill and/or knowledge an organization possesses that gives it an edge over competitors
Core Competence
The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities
Corporate Strategy
A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions
Differentiation Strategy
Strategies implemented by each functional area of the organization to support the organization’s business strategy
Functional Strategy
A target or end that management desires to reach
Goal
A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product
Low-cost Strategy
An organization’s basic purpose and scope of operations
Mission
The process of identifying the specific procedures and processes required at lower levels of the organization
Operational Planning
The actions or means managers intend to use to achieve organizational goals
Plans
Inputs to a system that can enhance performance
Resources
A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration
Situational Analysis
Groups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies
Stakeholders
A system designed to support managers in evaluating the organization’s progress regarding its strategy and, when discrepancies exist, taking corrective action
Strategic Control System
Major targets or end results relating to the organization’s long-term survival, value, and growth
Strategic Goals
A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies
Strategic Management
A set of procedures for making decisions about the organization’s long-term goals and strategies
Strategic Planning
The long-term direction and strategic intent of a company
Strategic Vision
A pattern of actions and resource allocations designed to achieve the organization’s goals
Strategy
A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy
SWOT Analysis
A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing
Tactical Planning
The acquisition or development of new businesses that produce parts or components of the organization’s product
Vertical Integration
