LEAD 9320 Vocabulary Flashcards
Reflects a concern that the organization’s activities contribute to improving short- and long-term financial performance. It includes traditional measures such as net income and return on investment.
Financial Perspective
How customers view the organization, as well as customer retention and satisfaction.
Customer Service Perspective
Focuses on production and operating statistics, such as speed of order fulfillment and cost per order.
Internal Process Perspective
Focuses on how well resources and human capital are being managed for the company’s future. Measurements include such things as employee satisfaction and retention, amount of training people receive, business process improvements, and the introduction of new products.
Learning and Growth Perspective
Balanced Scorecard
Financial Perspective
Customer Service Perspective
Internal Process Perspective
Learning and Growth Perspective
Generic Strategies
Differentiation
Low Cost Leadership
Focus Strategy
Organizations attempt to distinguish their products or services from others in the industry. An organization may use advertising, distinctive product features, exceptional service, or new technology to achieve a product perceived as unique.
Differentiation
A strategy that tries to increase market share by keeping costs low compared to competitors. With this strategy, the organization aggressively seeks efficient facilities, pursues cost reductions, and uses tight controls to produce products or services more efficiently than its competitors.
Low Cost Leadership
The organization concentrates on a specific regional market or buyer group. The company will try to achieve either a low-cost advantage or a differentiation advantage within a narrowly defined market.
Focus Strategy
Porter’s Five Forces
Supplier Power
Buyer Power
Competitive Rivalry
Threat of Substitution
Threat of New Entry
An assessment of how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each essential input; uniqueness of their product or service; relative size and strength of the supplier; and cost of switching from one supplier to another.
Supplier Power
An assessment of how easy it is for buyers to drive prices down. this is driven by the number of buyers in the market; importance of each individual buyer to the organization; and cost to the buyer of switching from one supplier to another. If a business has just a few powerful buyers, they are often able to dictate terms.
Buyer Power
The main driver is the number and capability of competitors in the market. Many competitors, offering undifferentiated products and services, will reduce market attractiveness.
Competitive Rivalry
Where close substitute products exist in a market, it increases the likelihood of customers switching to alternatives in response to price increases. This reduces both the power of suppliers and the attractiveness of the market.
Threat of Substitution
Profitable markets attract new entrants, which erodes profitability unless incumbents have strong durable barriers to entry, for example, patients, economies of scale, capital requirements or government policies, then profitability will decline to a competitive rate.
Threat of New Entry
