Bmgt 2501 Vocab Words

Front 1

Planning

Back 1

Identifying and selecting appropriate goals and courses of action; one of the four principal functions of management.

Front 2

Strategy

Back 2

A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals.

Front 3

Mission statement

Back 3

A broad declaration of an organization's purpose that identifies the organization's products and customers and distinguishes the organization from its competitors.

Front 4

Division

Back 4

A business unit that has its own set of managers and functions or departments and competes in a distinct industry.

Front 5

Divisional managers

Back 5

Managers who control the various divisions of an organization.

Front 6

Corporate-level plan

Back 6

Top management's decisions pertaining to the organization's mission, overall strategy, and structure

Front 7

Corporate-level strategy

Back 7

A plan that indicates in which industries and national markets an organization intends to compete.

Front 8

Business-level plan

Back 8

Divisional managers' decisions pertaining to divisions' long-term goals, overall strategy, and structure.

Front 9

Business-level strategy

Back 9

A plan that indicates how a division intends to compete against its rivals in an industry.

Front 10

Function

Back 10

A unit or department in which people have the same skills or use the same resources to perform their jobs.

Front 11

Functional managers

Back 11

Managers who supervise the various functions, such as manufacturing, accounting, and sales, within a division.

Front 12

Functional-level plan

Back 12

Functional managers' decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals.

Front 13

Functional-level strategy

Back 13

A plan that indicates how a function intends to achieve its goals.

Front 14

Time horizon

Back 14

The intended duration of a plan.

Front 15

Scenario planning

Back 15

The generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions; also called contingency planning

Front 16

Strategy formulation

Back 16

Analysis of an organization's current situation followed by the development of strategies to accomplish its mission and achieve its goals

Front 17

SWOT analysis

Back 17

A planning exercise in which managers identify organizational strengths (S), weaknesses (W), environmental opportunities (O), and threats (T).

Front 18

Diversification

Back 18

Expanding operations into a new business or industry and producing new goods or services.

Front 19

Related diversification

Back 19

Entering a new business or industry to create a competitive advantage in one or more of an organization's existing divisions or businesses.

Front 20

Synergy

Back 20

Performance gains that result when individuals and departments coordinate their actions

Front 21

Unrelated diversification

Back 21

Entering a new industry or buying a company in a new industry that is not related in any way to an organization's current businesses or industries

Front 22

Global strategy

Back 22

Selling the same standardized product and using the same basic marketing approach in each national market.

Front 23

Multidomestic strategy

Back 23

Customizing products and marketing strategies to specific national conditions.

Front 24

Exporting

Back 24

Making products at home and selling them abroad.

Front 25

Importing

Back 25

Selling at home products that are made abroad.

Front 26

Licensing

Back 26

Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee

Front 27

Franchising

Back 27

Selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits.

Front 28

Strategic alliance

Back 28

An agreement in which managers pool or share their organization's resources and know-how with a foreign company and the two organizations share the rewards and risks of starting a new venture.

Front 29

Joint venture

Back 29

A strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business.

Front 30

Wholly owned foreign subsidiary

Back 30

Production operation established in a foreign country independent of any local direct involvement.

Front 31

Vertical integration

Back 31

A strategy that allows an organization to create value by producing its own inputs or distributing and selling its own outputs.

Front 32

Low-cost strategy

Back 32

Driving the organization's costs down below the costs of its rivals.

Front 33

Differentiation strategy

Back 33

Distinguishing an organization's products from the products of competitors in dimensions such as product design, quality, or after-sales service.

Front 34

Focused low-cost strategy

Back 34

Serving only one segment of the overall market and being the lowest-cost organization serving that segment.

Front 35

Focused differentiation strategy

Back 35

Serving only one segment of the overall market and trying to be the most differentiated organization serving that segment.