Chapter 6

Card Set Information

Chapter 6
2013-03-19 20:00:17

Chapter 6
Show Answers:

  1. Planning
    Identifying and selecting appropriate goals and courses of action; one of the four principal tasks of management
  2. Strategy
    A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals.
  3. Mission Statement
    A broad declaration of an organizations purpose that identifies the organizations products and customers and distinguishes the organization from its competitors
  4. Corporate level plan
    Top managements decisions pertaining to the organizations mission, overall strategy, and structure.
  5. Corporate level strategy
    A plan that indicates in which industries and national markets an organization intends to compete
  6. Business level plan
    Divisional managers decisions pertaining to divisions long term goals, overall strategy, and structure
  7. Business level strategy
    A plan that indicates how a division intends to compete against its rivals in an industry
  8. Functional level plan
    Functional managers decisions pertaining to the goals that they propose to pursue to help the division attain its business level goals.
  9. Functional level strategy
    A plan of action to improve the ability of each of an organizations functions to perform its tasks specific activities in ways that add value to an organizations goods and services
  10. Time horizon
    The intended duration of a plan
  11. Strategic Leadership
    The ability of the CEO and top managers to convey a compelling vision of what they want the organization to achieve to their subordinates
  12. Strategy formulation
    The development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals.
  13. SWOT Analysis
    A planning exercise in which managers identify organizational strengths and weaknesses and environmental opportunities and threats.
  14. Hypercompetition
    Permanent, ongoing, intense competition brought about in an industry by advancing technology or changing customer tastes
  15. Low-Cost strategy
    Driving the organizations costs down below the cots of its rivals
  16. Differentiation Strategy
    Distinguishing an organizations products from the products of competitors on dimensions such as product design, quality, or after sales service
  17. Focused low cost strategy
    Serving only one segment of the overall market and trying to be the lowest cost organization serving that segment
  18. Focused differentiation strategy
    Serving only one segment of the overall market and trying to be the most differentiated organization serving that segment
  19. Concentration on a single industry
    Reinvesting a company's profits to strengthen its competitive position in its current industry
  20. Vertical integration
    Expanding a company's operations either backward into an industry that produces inputs for its products or toward into an industry that uses, distributes, or sells its products.
  21. Diversification
    Expanding a company's business operations into a new industry in order to produce new kinds of valuable goods or services
  22. Related diversification
    Entering a new business or industry to create a competitive advantage in one or more of an organizations existing divisions or businesses
  23. Synergy
    Performance gains that result when individuals and departments coordinate their actions
  24. Unrelated diversification
    Entering a new industry or buying a company in a new industry that is not related in any way to an organizations current businesses or industries.
  25. Global strategy
    Selling the same standardized product and using the same basic marketing approach in each national market
  26. Multidomestic strategy
    Customizing products and marketing strategies to specific national conditions
  27. Licensing
    Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee
  28. Franchising
    Selling to a foreign organization the rights to use a brand name and operating known how in return for a lump sum payment and a share of the profits
  29. Strategic alliance
    An agreement in which managers pool or share their organizations resources and know how with a foreign company, and the tow organizations share the rewards and risks of starting a new venture
  30. Joint venture
    A strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business