Chapter 6: Strategy and Structure
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23 terms
Terms | Definitions |
|---|---|
 Strategy | An action managers take to attain a goal of an organization. |
| Competitive Advantage | Advantage obtained when a firm outperforms rivals. |
| Distinctive Competency | A unique strength that rivals lack. |
| Sustainable Competitive Advantage | A distinctive competency that rivals cannot easily match or imitate. |
| Barrier to Imitation | Factors that make it difficult for a firm to imitate the competitive position of a rival. |
| Legacy Constraints | Prior investments in a particular way of doing business that are difficult to change and limit a firm's ability to imitate a successful rival. |
| Business-level Strategy | Strategy concerned with deciding how a firm should compete in the industries in which it has elected to participate. |
| Low-cost Strategy | Focusing managerial energy and attention on doing everything possible to lower the costs of the organization. |
| Economies of Scale | Cost advantages derived from a large sales volume. |
| Differentiation Strategy | Increasing the value of a product offering in the eyes of consumers. |
| Planning | Identifying and selecting appropriate coals and courses of action; one of the four principal functions of management. |
| Strategy | A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals. |
| Mission Statement | A broad declaration of an organization's purpose that identifies the organization's products and customers and distinguishes the organization from its competitors. |
| Corporate-level Plan | Top management's decisions pertaining to the organization's mission, overall strategy, and structure. |
| Corporate-level Strategy | A plan that indicates in which industries and national markets an organization intends to compete. |
| Business-level Plan | Divisional managers' decisions pertaining to divisions' long-term goals, overall strategy, and structure. |
| Business-level Strategy | A plan that indicates how a division intends to compete against its rivals in an industry. |
| Functional-level Plan | Functional managers' decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals. |
| Functional-level Strategy | A plan that indicates how functional managers intend to increase the value of the organization's goods and services. |
| Time Horizon | The intended duration of a plan. |
| Scenario Planning | The generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions. |
| 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. |
| 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. |
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