Fundamentals of Management chapter 6

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greenbaum spring 2013

business plan

a document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success.

strategy

is a large-scale action plan that sets the direction for an organization

strategic management

is a process that involves managers from tall parts of the organization in the formulation and the implementation of strategies and strategic goals

strategic positioning

attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company

grand strategy

which after an assessment of current organizational performance, then explains how the organization's mission is to be accomplished

growth strategy

is a grand strategy that involves expansion- as in sales revenues, market share, number of employees, or number of customers or clients served

stability strategy

is a grand strategy that involves little or no significant change

defensive strategy

or a retrenchment strategy, is a grand strategy that involves reduction in the organizations efforts

strategy formulation

is the process of choosing among different strategies and altering them to est fit the organizations needs

strategy implementation

putting strategic plans into effect

strategic control

consists of monitoring the execution of strategy and making adjustments if necessary

competitive intelligence

means gaining information about one's competitors activities so that you can anticipate their moves and react appropriately

environmental scanning

careful monitoring of an organization internal and external living environments to detect early signs of opportunities and threats that may influence the firm's plans

SWOT analysis

also knows as situational analysis, search for strengths, weakness, opportunities, and threats affecting the organization

organizational strengths

the skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission

organizational weaknesses

the drawbacks that hinder and organization in executing strategies in pursuit of its mission

organizational opportunities

environmental factors that the organization may exploit for competitive advantage

organizational threats

environmental factor that hinder an organization's achieving a competitive advantage

forecast

is a vision or projection of the future

trend analysis

is a hypothetical extension of a past series of events into the future

contingency planning or scenario planning

also scenario analysis, is the creation of alternative hypothetical but equally likely future conditions

porter's model for industry analysis

business level strategies originate in five primary competitive forces in the firm's environment. 1 threats of new entrants. 2 bargaining power of suppliers. 3 bargaining power of buyers. 4 threats of substitute products or services. 5 rivalry among competitors

porters four competitive strategies

1 cost-leadership. 2 differntiation. 3 cost-focus. 4 focused-differentiation.

cost-leadership strategy

is to keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market

differentiation strategy

is to offer products or services that are unique and superior value compared with those of competitors but to target a wide market

cost-focus strategy

is to keep the costs and hence prices, of a product of service below those of competitors and to target a narrow market

focused-differentiation strategy

is to offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market

single-product strategy

a company makes a sells only one product within its market

diversification

operating several businesses in order to spread the risk

unrelated diversification

operating several businesses under one ownership that are not related to one another

related diversification

in which an organization under one ownership operates separate businesses that are related to one another

synergy

he economic value of separate, related businesses under one ownership and management is greater together than the businesses are worth separately

BCG matrix

is a means of evaluating strategic business units on the basis of their business growth rates and their share of the market

execution

they say is not simply tactics, it is a central part of any company's strategy. it consists of using questioning, analysis, and follow-through to mesh strategy with reality, align people with goals, and achieve the results promised

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