OS chapter 8 Flashcards
Core competences
Skills and abilities in value-creation activities that allow a company to achieve superior efficiency, quality, innovation or customer responsiveness
Functional resources
Skills possessed by an organization’s functional personnel
Organizational resources
The attributes that give an org. a competitive advantage such as the skills of top-management team or possession of valuable scarce resources
Coordination ability
An organization’s ability to coordinate its functional and organizational resources to create maximal value
Corporate-level strategy
A plan to utilize core competencies to protect and grow the organization’s current market and expand into new ones.
Functional-level strategy
A plan to enhance an organization’s resources and coordination to build core competencies
Business-level strategy
A plan to leverage functional strengths to gain a competitive edge in the organization’s market
Global expansion strategy
A plan to enter international markets to secure resources and enhance core competencies
Low-cost business-level strategy
A strategy where a company provides low-priced goods and services to appeal to all customer groups
Differentiation business-level strategy
A strategy where a company offers high-quality, premium-priced products tailored to specific market segments
Vertical integration
A strategy where a company gains control over its supply chain by acquiring its suppliers (backward integration) or its distributors (forward integration)
Related diversification
Entering a new market or industry that is connected to a company’s existing business activities
Unrelated diversification
Entering a new market or industry that is completely different from a company’s core business
Conglomerate structure
A structure where each business operates as a separate, self-contained division, with little to no interaction between divisions
