Upgrade to remove ads
Bus Pol Final
Terms in this set (35)
What you have that makes you better than competitors for your customers. Competitors are unable to duplicate.
Source of resources that you company uses to stand out and make yourself better.
Strategic Management Process (what it is)
Process where CEO analyses environment to find out where company can earn best return.
1. External environment and internal organization are analyzed to determine resources, capabilities, and core competencies.
2. Vision and mission are developed.
3. Strategies are implemented with the goal of achieving strategic competitiveness.
4. Continuously changed markets and industry conditions must match evolving strategic inputs.
External Environment Analysis
General: Dimensions in the broader society that influence an industry and the firms within it.
Industry: Set of factors that directly influence a firm and its competitive actions and response.
Competitor: Focuses on each company against which a firm directly competes.
Economy of Scale
The more you produce the cheaper it is to produce.
Value Chain Analysis (what is the purpose)
Allows the firm to understand the parts of its operation that create value and ones that do not. (Ex. Inbound logistics, Outbound logistics, H.R, I.T. Infrastructure, Procurement)
Becoming your own supplier or distributor through acquisition. Vertical movement up or down the value chain.
Acquisition of competitors. Horizontal movement at the same point in the value chain.
Related and Unrelated diversifications
Related is when firms are in related industries and unrelated is when they are not.
the interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.
Mergers and Acquisitions
Merger: Two firms agree to integrate their operations. (There are few true mergers because one firm usually dominates)
Acquisition: One firm buys a controlling 100 percent interest in another firm.
3 Restructuring strategies
Downsizing: A reduction in the number of a firms employees and sometimes in the numbers of its operating units.
Downscoping: Eliminating businesses unrelated to a firms core businesses. Leveraged Buyouts: One party buys all the firms assets in order to take the firm private.
Benefits of expanding international market
1. Increased market size
2. Economies of scale and learning
3. Location advantages
3 International corporate level strategies
Multi-domestic, Global, Transnational (See differences)
Different methods of entry for international market
Exporting: The firm sends products it produces to international markets.
Licensing: An agreement is formed that allows a foreign company to purchase the right to manufacture and see a firms products within a host country's market.
Strategic Alliance: Collaboration with a partner firm for international market entry.
Acquisitions: A firm from one country acquires a firm in another country.
New Wholly Owned Subsidiary: Greenfield Venture - A firm invest directly in another country/market by establishing a new wholly owned subsidiary.
Firms collaborate for the purposed of working together to achieve a shared objective.
1. Joint venture
2. Equity strategic alliance
3. Nonequity strategic alliances
Two types of complementary strategic alliance
Vertical complementary strategic alliance:
Horizontal complementary strategic alliance:
Indirect coordination of production and pricing decisions by several firms, which impacts the degree of competition faced in the industry.
A set of mechanisms used to manage the relationships among stakeholders, and to determine and control the strategic direction and performance of organizations.
Risk Bearing Specialist (Principle paying compensation too. A managerial Decision making specialist (Agent)
2 Reasons managers want to diversify
Increase in firm size:
Reduce top executives employment risk:
Board of directors (roles)
Oversee managers to ensure the company is operated in ways to maximize shareholder wealth, direct the affairs of the organization, punish and reward managers, protect shareholders rights and interests, protect owners from managerial opportunism.
Organizational Structure - Goals they want to accomplish
Structural stability: capacity firm requires to consistently and predictably managing its daily work routines
Structural flexibility: opportunity to explore competitive advantages firm will need to be successful in the future.
Financial Controls and Strategic Controls
FINANCIAL : Business: Cost leadership emphasizes financial controls. Corporate: unrelated diversification strategies where capabilities are not shared. STRATEGIC: Business: Differentiation strategy emphasize strategic controls. Corporate: Related diversification strategy where sharing among business units is critical.
Financial, Customer, Internal Business Process, Learning and growth.
3 Traditional Organizational Structures
Specialization, Centralization, Formalization
What is the most important skill as strategic leader?
Attracting and managing human capital. (Includes Intellectual)
Factors that impact manager's decisions
External environmental sources, Organizations characteristics, Managers characteristics.
Top management team (Who is in it?)
Composed of key individuals who are responsible for selecting and implementing firm's strategies; usually includes officers of the corporation (VP and above) and board of directors.
Homogenous and heterogeneous management teams
Homogenous: Individuals with similar functional backgrounds, experiences, and education.
Heterogeneous: Individuals with varied functional backgrounds, experiences, and education.
Internal and external labor markets. (Pros and cons of each)
Benefits of Internal: Continuity, Continued commitment, Familiarity, Reduced turnover, retention of private knowledge, favored when the firm is performing well.
Benefits of External: Long tenure with the same firm is thought to reduce innovation, Outsiders bring diverse knowledge bases and social networks, which off the potential for synergy and new competitive advantages, fresh paradigms.
4 Criteria on balanced scorecard
Financial, Customer, Internal Business Processes, Learning and Growth
Entrepreneurial mindset and characteristics
Entrepreneurial mindset: Values uncertainty in the marketplace and seeks to continuously identify opportunities with the potential to lead to important innovations
Characteristics: Highly motivated, willing to take responsibility for their projects, passionate, Optimistic, emotional about the value and importance of their innovation based ideas, entrepreneurial mind-set, able to deal with uncertainty, more alert to opportunities than others, good social skills and plan exceptionally well.
3 Types of Innovation
Internal - autonomous vs. induced
2 Barriers to effectiveness when using a cross-functional development team (Frame of Reference, Politics)
Independent frames of reference of members with distinct specializations.
Organizational politics that create competition for resources and inter-unit conflict.
YOU MIGHT ALSO LIKE...
Business Policies - Final Exam
Capstone Test 2
Strategic Management Exam 3
MGT 490 final exam-Professor Meek
OTHER SETS BY THIS CREATOR
Ethics Final Review
Law 331 Amendments
Law 331 Cases
Law 331 YouTube/Movies
OTHER QUIZLET SETS
Chem Ch. 2 Vocab
Maternal/OB: Ch. 8 Nursing care of women with comp…
Brayden - History Test
Skills ch.14 misc