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Fundamentals of Management chapter 6

greenbaum spring 2013
STUDY
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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