STRAMAN FINALS Flashcards
The process of creating a competitive advantage by designing goods or services to customer needs.
Product Differentiation
The plan of action strategic managers adopt to use a company’s resources and distinctive competencies to gain a competitive advantage.
Business-Level Strategy
The way a company decides to group customers based on important differences in their needs or preferences, to gain a competitive advantage.
Market Segmentation
Desires, wants, or cravings that can be satisfied by means of the characteristics of a product or service.
Customer Needs
A strategy of trying to outperform competitors by doing everything possible to produce goods or services at a cost lower than they do
Cost- Leadership Strategy
A strategy that focuses on increasing profi tability by reaping the cost reductions derived from economies of scale and location economies
Global Standardization Strategy
A strategy that focuses on increasing profi by customizing the company’s goods or services so that provide a good match to tastes and preferences in different national markets.
Localization Strategy
Economic benefits that arise from performing a value creation activity in the optimal location for that activity
Location Economies
A strategy in which firms try to simultaneously achieve low costs, differentiate the product offering across geographic markets, and foster a flow of skills among different subsidiaries in the company’s global network of operations.
Transnational Strategy
A company’s use of capital such as stock, debt, or cash to purchase another company
Acquisition
Acquiring or merging with industry competitors to achieve the competitive that come with large size.
Horizontal Integration
The strategy a company adopts when it focuses its resources and capabilities on competing successfully within a particular product market
Concentration on a Single Industry
The strategy of offering customers the opportunity to buy a complete range of products at a single, combined price
Product Bundling
An agreement between two companies to pool their operations and create a new business entity
Merger
A process whereby, in their effort boost company performance, managers focus not the company’s functional activities but on the business processes underlying its value creation operations.
Reengineering
The movement of a company away from its present state toward some desired future state to increase its competitive advantage and profitability
Strategic Change
A cooperative agreement between two or more companies to work together and share resources to achieve a common business objective.
Strategic Alliance
Any business activity, such as order inventory control, or product design, that is vital to goods and services to customers quickly or that promotes high quality or costs
Business Process
A company’s creation of the value chain functions necessary to start a new business from scratch.
Internal New Venture
The process through which managers select the combination of organizational structure and control systems that they believe will enable the company to create and sustain competitive advantage. a
Organizational Design
The process by which strategic managers choose how to distribute decisionmaking authority over value creation activities in an organization
Vertical Differentiation
The process by which strategic managers choose how to divide people and tasks into functions and divisions to increase their ability to create value.
Horizontal Differentiation
The principle that managers should choose a hierarchy with the minimum number of levels of authority necessary to achieve its strategy
Principle of the Minimum Chain of Command
The way in which a company allocates people resources to organizational tasks and divides them into functions and divisions so as to create value.
Differentiation
The process by which strategic managers choose how to distribute decisionmaking authority over value creation activities in an organization
Vertical Differentiation
fate of a company whose strategy fails because it has made product/market. choices in a way that does not lead to a sustained competitive advantage.
Stuck in the Middle
The process by which companies increase or decrease product prices to convey their competitive intentions to other companies.
Price Signaling
- The process by which one company informally takes the responsibility for setting industry prices.
Price Leadership
- A strategy in which a company concentrates on expanding market share in its existing product. markets.
Market Penetration
- A strategy of serving the needs of one or a few customer groups or segments.
Focus Strategy
- A strategy involving a search for new market segments, and therefore new uses, for a company’s products.
Market Development
A strategy of trying to achieve a competitive advantage by creating a product that is perceived by customers as unique in some important way.
Differentiation Strategy
- A company that offers a product designed for each market niche.
Broad Differentiator
A strategy involving the constant creation of new or improved products to replace existing ones.
Product Development
- A strategy in which a company sells off its business assets and resources to other companies.
Divestment Strategy
A strategy that optimizes cash flow.
Harvest Strategy -
- The strategy of focusing on pockets of demand that are declining more slowly than demand in the industry as a whole.
Niche Strategy
A strategy through which a company seeks to become the dominant player in a declining industry.
Leadership Strategy
A strategy in which leading companies in an industry all make a product in each market segment or niche and compete head-to-head for customers.
Product Proliferation
A strategy in which firms try centralize product development functions such as R&D at home but establish manufacturing and marketing functions in each major country or geographic region in they business.
International Strategy -
A specialized form of licensing in which the franchiser sells the franchisee intangible property (normally a trademark) and insists that the franchisee
Franchising -
- An arrangement whereby a foreign licensee buys the rights to produce a company’s product in the licensee’s country for a negotiated fee..
International Licensing
- A separate corporate entity in which two or more companies have an ownership stake.
Joint Venture
A subsidiary where the parent company owns 100% of the stock.
Wholly Owned Subsidiary -
