M Now Ch 4 Flashcards
Strategy
Outline of the basic steps that management plans to take to achieve an objective.
Growth Strategies
Concentration to expand horizonely and varitionelty. Up and down. By sales, product line, number of employees.
Retrenchment Strategies (three ***)
Strategies by which a company reduces its operations.
- turnaround
- divestiture
- liquidation
- Overall cost leadership
- Differentiation
- Focus
Name the THREE Business Strategies
competitive strategies
Strategic Management
Developing strategic plans and keeping them current, including the environment.
Transaction Processing System
Systems that substitutes computer processing for manual record-keeping procedures.
Formulation Phase
First phase in strategic management, the initial strategic plan is developed.
Mission
Basic purpose or purposes of the organization.
SWOT
Strengths, Weaknesses, Opportunities, Threats: OVERVIEW - evaluate the performance
External Environment
Everything outside the organization
Strategic Business Unit = SBU
Distinct business that has its own set of competitors and can be managed reasonably independently of other businesses within the organization.
An example on a Broad Environment Factor
Social trends
