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35 Cards in this Set

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Planning
Identifying and selecting appropriate goals 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.
Division
A business unit that has its own set of managers and functions or departments and competes in a distinct industry.
Divisional managers
Managers who control the various divisions of an organization.
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.
Function
A unit or department in which people have the same skills or use the same resources to perform their jobs.
Functional managers
Managers who supervise the various functions, such as manufacturing, accounting, and sales, within a division.
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 a function intends to achieve its goals.
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; also called contingency planning
Strategy formulation
Analysis of an organization's current situation followed by the development of strategies to accomplish its mission and achieve its goals
SWOT analysis
A planning exercise in which managers identify organizational strengths (S), weaknesses (W), environmental opportunities (O), and threats (T).
Diversification
Expanding operations into a new business or industry and producing new goods or services.
Related diversification
Entering a new business or industry to create a competitive advantage in one or more of an organization's existing divisions or businesses.
Synergy
Performance gains that result when individuals and departments coordinate their actions
Unrelated diversification
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
Global strategy
Selling the same standardized product and using the same basic marketing approach in each national market.
Multidomestic strategy
Customizing products and marketing strategies to specific national conditions.
Exporting
Making products at home and selling them abroad.
Importing
Selling at home products that are made abroad.
Licensing
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
Franchising
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.
Strategic alliance
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.
Joint venture
A strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business.
Wholly owned foreign subsidiary
Production operation established in a foreign country independent of any local direct involvement.
Vertical integration
A strategy that allows an organization to create value by producing its own inputs or distributing and selling its own outputs.
Low-cost strategy
Driving the organization's costs down below the costs of its rivals.
Differentiation strategy
Distinguishing an organization's products from the products of competitors in dimensions such as product design, quality, or after-sales service.
Focused low-cost strategy
Serving only one segment of the overall market and being the lowest-cost organization serving that segment.
Focused differentiation strategy
Serving only one segment of the overall market and trying to be the most differentiated organization serving that segment.