Key Terms Ch 4

Question 1

The major actions by which a business competes in a particular industry or market

Answer 1

Business Strategy

Question 2

A strategy employed for an organization that operates a single business and competes in a single industry

Answer 2

Concentration

Question 3

A strategy used to add new businesses that produce related products or are involved in related markets and activities

Answer 3

Concentric Diversification

Question 4

A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities

Answer 4

Conglomerate Diversification

Question 5

A unique skill and/or knowledge an organization possesses that gives it an edge over competitors

Answer 5

Core Competence

Question 6

The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities

Answer 6

Corporate Strategy

Question 7

A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions

Answer 7

Differentiation Strategy

Question 8

Strategies implemented by each functional area of the organization to support the organization’s business strategy

Answer 8

Functional Strategy

Question 9

A target or end that management desires to reach

Answer 9

Goal

Question 10

A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product

Answer 10

Low-cost Strategy

Question 11

An organization’s basic purpose and scope of operations

Answer 11

Mission

Question 12

The process of identifying the specific procedures and processes required at lower levels of the organization

Answer 12

Operational Planning

Question 13

The actions or means managers intend to use to achieve organizational goals

Answer 13

Plans

Question 14

Inputs to a system that can enhance performance

Answer 14

Resources

Question 15

A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration

Answer 15

Situational Analysis

Question 16

Groups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies

Answer 16

Stakeholders

Question 17

A system designed to support managers in evaluating the organization’s progress regarding its strategy and, when discrepancies exist, taking corrective action

Answer 17

Strategic Control System

Question 18

Major targets or end results relating to the organization’s long-term survival, value, and growth

Answer 18

Strategic Goals

Question 19

A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies

Answer 19

Strategic Management

Question 20

A set of procedures for making decisions about the organization’s long-term goals and strategies

Answer 20

Strategic Planning

Question 21

The long-term direction and strategic intent of a company

Answer 21

Strategic Vision

Question 22

A pattern of actions and resource allocations designed to achieve the organization’s goals

Answer 22

Strategy

Question 23

A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy

Answer 23

SWOT Analysis

Question 24

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

Answer 24

Tactical Planning

Question 25

The acquisition or development of new businesses that produce parts or components of the organization’s product

Answer 25

Vertical Integration