MIS 373 Ch. 2 Flashcards
3 concepts vitally important to business
- Competitiveness
- Strategy
- Productivity
Competitiveness
How effectively an organization meets the wants and needs of consumers relative to others that offer similar goods or services
Organizations compete over:
Price (cost)
Quality
Response-time
Variety (flexibility)
Mission Statement
The reason for an organization’s existence
- states the purpose of the organization
- should answer the question “What business are we in?”
- serves as the basis for organizational goals
Goals
provide detail and the scope of the mission
Goals serve as the basis for organizational strategies
Strategy
A plan for achieving organizational goals
-serves as a roadmap for reaching the org. destinations
2 Strategies of Organizations
Organizational strategies
Functional level strategies
Organizational strategies
- overall strategies that relate to the entire org.
- support the achievement of org. goals and mission
Functional level strategies
-strategies that relate to each of the functional areas and that support achievement of the org. strategy
Types of Strategies
Low Price Specialization Variety Newness Service Sustainability Quality Responsiveness
Strategy Formulation takes into account:
- Core competencies
- Environmental Scanning (SWOT)
- Order qualifiers
- Order winners
Core Competencies
The special attributes or abilities that give an org. a competitive edge.
Competencies and strategy need to be aligned to be effective.
Environmental Scanning
necessary to identify:
- Internal Factors
- -Strengths / Weaknesses
- External Factors
- Opportunities / Threats
Order qualifiers
characteristics that customers perceive as minimum standards of acceptability for a product or service to be considered as a potential purchase
Order Winners
Characteristics of an org. goods or services that cause it to be perceived as better than the competition
