Strategy Flashcards
For what purpose do organizations exist?
To provide a service. NOT to make profit
What are some typical objectives?
- Profit
- Social Responsibility
- more (slide18)
What is the SWOT method of strategic analysis?
Strengths?
Weaknesses?
Opportunities?
Threats?
know them!
What are some examples of opportunities?
- Possible new markets
- Strong economy
- Weak rivals
- Emerging tech
- Growth of existing market
Examples of strengths?
- manufacturing efficiency?
- skilled workforce?
- good market share?
- strong financing?
- superior reputation
Examples of weaknesses?
- Outdated facilities?
- Inadequate Research and Development?
- Obsolete technologies?
- Weak management?
- Past planning failures?
Examples of threats?
- New competitors?
- shortage of resources
- changing market tastes
- new regulations
- substitute products
What is Porters Model of 5 Strategic Forces
A model describing there being 5 forces acting on any organization that influence their strategy:
Industry Competition New entrants Substitute products or services Bargaining Power of Suppliers Bargaining Power of Customers
What are 4 ‘Grand’ or ‘Master’ strategies?
Growth strategies- seek increase in size and expansion of current operation
Stability strategy- maintains current operations without substantial changes
Renewal strategy- tries to solve problems and overcome weaknesses that are hurting performance
Combination strategy- pursues growth, stability, or retrenchment in some factor like cost or time
What are some examples of growth strategies?
Concentration strategies- expanding in the same business area.
Diversification Strategies- Related diversification
Unrelated diversification
Vertical integration
What is horizontal integration?
purchasing of a competing company. A type of concentration strategy
What is vertical integration?
buying of supplier or customer companies.
What are some Global business strategies?
Globalization strategy: standardize products and advertising as much as possible
Multidomestic Strategy: Customize to local markets
Transnational Strategy: Balance efficiencies in global operations and responsiveness to local markets
geocentric view
What is a strategic alliance? What are some different types of strategic alliances?
two companies (possibly even enemies or rivals) working together toward a mutual goal.
Outsourcing alliances- Uniting to get suppliers to lower prices or such.
Whats the difference between e-commerce and e-business?
Commerce is exclusively commercial. Items bought/sold. Profit based.
E-business includes e-commerce as a subset within it, but includes the wider range of motivations and reasons for people paying for things. Like telecom services.
