MGMT300 Ch.7- Creative Strategy
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50 terms
Terms | Definitions |
|---|---|
 strategy | a comprehensive plan guiding resource allocatgion to achieve long-term organization goals |
| strategic Intent | focuses organizational energies on achieving a compelling goal |
| competitive advantage | operating in successful ways that are difficult to duplicate |
| competitive advantage | a firm's profitability is greater than the average profitability for all firms in its industry |
| sustained competitive advantage | a firm maintains competitive advantage for a number of years (approx. 3) |
| corporate strategy | directions and guidelines for use of resources What business are we in? |
| business strategy | identifies how a strategic business unit or division will compete in its product or service domain How do we compete in each of our major businesses? |
| functional strategy | guides activites within one specific area of operations How do we best support each of our business strategies? |
| growth strategy | expansion through current operations |
| concentration | expansion within an existing business area |
| diversification | expansion occurs by entering new business areas |
| vertical integration | expansion by acquiring existing suppliers or distributors |
| retrenchment | -changes operations to correct weaknesses -liquidation |
| liquidation | an extreme form of retrenchment wherein the business closes and sellf of its assets |
| liquidation | termination of a business operation by using its assets to discharge its liabilities |
| restructuring | reduces the scale or mix of operations |
| downsizing | decreases the size of operations |
| divestiture | sells off part of the organization to focus on core businesses |
| globalization strategy | adopts standardized products and advertising for use worldwide |
| multidomestic strategy | customizes advertising and products to best fit local needs |
| transnational strategy | seeks efficiencies of global operations with attention to local markets |
| strategic alliances | partnership between organizations to pursue mutual intersts or strengthen competitive advantage |
| supply chain | preferred relationships that facilitate smooth and timely transactions |
| co-opetition | competitiors share information or technology |
| E-business strategies | focus on using the internet for business transactions |
| B2B business strategies | use IT and web portats to vertically link organizations with members of their supply chains |
| B2C business strategies | use IT and web portals to vertically link organizations with members of their customers |
| strategic management | the process of formulating and implementing strategies |
| strategy formulation | the process of creating strategies |
| strategy implementation | the process of putting strategies into action |
| mission statement | the reason for the organizations existence in society |
| operating objectives | specific results that organizations attempt to achieve |
| common operating objectives of organizations | -profitability -market share -high-quality workforce -cost efficiency -product and service quality -innovativeness -social responsibility |
| SWOT Analysis | tool used in strategic planning to determine the current status of the organization -internal assessment of the organizational strengths and weaknesses -external assessment of environmental opportunities and threats |
| core competency | a special strength that gives an organization a competitive advantage |
| Porters Five forces | 1. new entrants 2.suppliers 3.substitiue products 4. customers 5. industry competition model examines industry attractiveness |
| unattractive industry | intense rivalry, easy entry, substitue products, powerful suppliers and customers |
| attractive industry | low rivals, barriers to entry, few or no substitue products, weak supplier and customer power |
| cost leadership strategy | seeks to operate at lower costs than competitiors |
| differentaiation strategy | offers products and services that are uniquely different from the competition |
| focused differerntiation strategy | offers a unique product to a special market segment |
| focused cost leadership strategy | uses cost leadership and target needs of a special market |
| cost leadership example | wal-mart toyota dell |
| differentiation example | nordstrom's maytag rolex |
| focus | gucci minebea alfa romeo |
| BCG Matrix (Boston Consulting Group) | analyzes business opportunites according to growth rate and market share |
| strategic leadership | the capability to inspire people to successfully engage in a process of continuous change, performance enhancement, and implementation of organizational strategies activates organizations for strategy implementation |
| strategic control | responsibility of management to stay on top of strategy, how it's being implememnted and if it needs to be adjusted to be more effective in accomplishing the mission |
| SWOT | strength, weakness, opportunities and threats |
| portfolio planning | examnines strategies across multiple business or products |
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