Management chp 7
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set of four measures directly linked to a company's strategy: financial performance, customer knowledge, internal business processes, and learning & growing
- core idea about how a firm can best compete in the market place by:
- low-cost leadership
approach to production and delivery of the products and services. refers to providing customers with convenient and reliable products or services at competitive prices.
continually tailor and shape products and services to fit an increasingly redefined definition of the customer. offers tailored to match the demands of identified niches.
strive to produce a continuous stream of state-of-the-art products and services. offering customers leading-edge products and services.
a master long-term plan that provides basic direction for major actions achieving long-term business objectives.
concentrated growth (grand strategy)
firm directs its resources to the profitable growth of single product, in a single market, with a single dominant technology. lead to enhanced performance
market development (grand strategy)
marketing present products, often with only cosmetic modification, to customers in related marketing areas. allows firms to leverage some of their traditional strengths by identifying new use for existing products and new demographically, pyschographically, or geographically defined markets.
product development (grand strategy)
involves substantial modification of existing products that can be marketed to current customers. based on penetration of existing markets by incorporating product modifications into existing items
Innovation (grand strategy)
seeks to reap the premium margins associated with creation and customer acceptance of a new product or service.
Horizontal Acquisition (grand strategy)
based on growth through acquisition of similar firms operating at the same stage of the production-marketing chain. can provide firm with opportunity to offer its customers a broader product line.
Vertical Acquisition (grand strategy)
based on acquisition of firms that supply the acquiring firm with inputs or new customers for its outputs
Concentric Diversification (grand strategy)
involves the operation of a second business that benefits from access to the first firm's core competencies. emphasizes some commonality in markets, products and technology.
Conglomerate Diversification (grand strategy)
involves the acquisition of a business because it presents the most promising investment opportunity available. based principally on profit considerations.
Turnaround (grand strategy)
cost reduction and asset reduction by a company to survive and recover from declining profits.
Divestiture (grand strategy)
involves the sale of a firm or a major unit of a firm as a going concern
Liquidation (grand strategy)
involves the sale of the assets of the business for their salvage value.
Bankruptcy (grand strategy)
- when a company is unable to pay its debts as they become due.
- Chapter 7 = liquidation bankruptcy
- Chp 11= reorganization
Joint Ventures (grand strategy)
companies create a co-owned business that operates for their mutual benefit. extends the supplier-consumer relationship and has strategic advantages for both partners.
Strategic Alliances (grand strategy)
contractual partnerships because the companies involved do not take an equity position in one another. exist for defined period during which partners contribute their skills and expertise to a cooperative project.
Consortia (grand strategy)
large interlocking relationships between businesses of an industry.
Japanese consortia that is coordinated by a large trading company to gain a strategic advantage.
Korean consortia financed through government banking groups to gain a strategic advantage.
a clear understanding of how the firm will generate profits and the strategic actions it must take to succeed over the long term.
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