Strategy Flashcards
Strategy Definition
organizational missions, goals, objectives and action plans for achievement that recognizes the competition and impact of outside environmental forces (ie. organizations intentions)
Strategy Formulation
process of creating the orgs mission, identifying the orgs strategy and developing long term performance goals
Strategy Implementation
act(s) of putting long term, mid term and short term plans into place; activities that managers and employees do to enact the strategic plan and reach their goals
Three Resource Types
land, capital and labour
HR’s role in Strategy
align hr and business strategies, develop hr metrics and measure hr values, and manage risks
Environmental Factors
economic climate, globalization, political/legal factors, technological factors, demographic factors and social/cultural factors
Corporate Strategy
organizations overall strategy that is made up of multiple units; determies how the corporation as a whole supports and enhances the value of the business units
Types of Corporate Strategies
restructuring, growth, stability
Restructuring Strategies
turnaround, divestiture, liquidation, and bankruptcies
Growth Strategies
incrememental growth, international growth, mergers, acquisitions
Stability Strategies
maintaining status quo
Turnaround
attempt to increase viability of the org
Divestiture
sale of a division or part of an org
Liquidation
termination of a business and sale of its assets
Bankruptcy
appointed trustee takes posession of a business’ assets and disposed of them properly
Incremental Growth
expanding client base, increasing products/services, changing distribution and using technology
International Growth
seeking new customers or markets by expanding internationally
Acquisition
purchase of one company by another
Merger
two organizations combine resources and become one
Domestic Growth Strategy (Domestic HR Strategy)
exporting goods abroad to seek new markets
Multi-Domestic Growth Strategy (Adaptive HR Strategy)
producing within the market where goods are sold
Multinational Growth Strategy (Exportive HR Strategy)
standardizing the products and services around the world to gain efficiency
Global Growth Strategy (Integrative HR Strategy)
introducing culturally sensitive products in chosen countries with the least amount of cost
Host-Country Nationals (HCNs)
people from subsidary country who know the foreign cultural environmental well
Parent-Country Nationals (PCNs)
people from headquarters that are highly familiar with orgs products/services as well as corporate culture
Third-Country Nationals (TCNs)
people from third country who have extensive experience and know the corporate culture from previous experience with corporate branches in the third country
Expatriate
someone who gives up residence in home country to take up residence in a foreign country either temporarily or permanently
Compensation Policy Options
home based, host based, region based
Home Based Compensation
links base salary to salary structure of the home country, retains home country salary structure for other supplements (ie housing, schooling)
Host Based Compensation
links base salary to the salary of the host country, but retains home country salary structure for other supplements (ie housing, schooling)
Region Based Compensation
compensates based on the “region” where they are assigned
Intended Strategy
agreed-upon strategy arrived at through formal planning process
Emergent Strategy
created from new ideas and conditions
Discarded Strategy
deemed inappropriate due to changing circumstances
Realized Strategy
Implemented plan (ie what actually happened)
Strategic Planning Process
7 step process
1 - Establish mission/vision/values 2 - Develop objectives 3 - Analyze the external environment 4 - Identify competitive advantage 5 - Determine competitive position 6 - Implement the strategy 7 - Evaluate the process
SWOT Analysis
Internal environment - strengths and weaknesses
External environment - opportunities and threats
Competitive Advantage
firms characteristics that allow it to earn higher rates of profits than competitors
Tangible Assets
assets with substance and can be consumed
Intangible Assets
assets that are not concrete (ie reputation or goodwill)
Capabilities
collective skills, abilities and expertise
Porter’s Model of Five Competitive Strategies
low cost leader strategy, broad differentiation strategy, best cost provider strategy, market niche on differentiation, market niche on low cost
Low-Cost Leader Competitive Strategy
low-cost provider of product/service that appeals to a broad range of customers (ie. Walmart)
Broad Differentiation Competitive Strategy
differentiate product offerings from rivals’ that appeal to a broad range of buyers (ie. Whole Foods)
Best-Cost Provider Competitive Strategy
more value for the money, emphasizing low cost and but upscale (ie. Ikea)
Market Niche on Differentiation Competitive Strategy
focused based on differentiation (ie. Rolls-Royce)
Market Niche on Low Cost Competitive Strategy
focused based on low cost (ie. Maybelline)
Purpose of Governane in HR
establish who has power, who makes decisions, who is accountable for those decisions and how others are heard
