Chapter 6

Front 1

Document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success.

Back 1

business plan

Front 2

Gaining information about competitor's activities so that one can anticipate their moves and react appropriately.

Back 2

competitive intelligence

Front 3

Creation of alternative hypothetical but equally likely future conditions.

Back 3

contingency planning
(scenario planning, scenario analysis)

Front 4

Strategy which keeps the costs, and hence prices, of a product or service below those of competitors and to target a narrow market.

Back 4

cost-focus strategy

Front 5

Strategy which keeps the costs, and hence prices, of a product or service below those of competitors and to target a wide market.

Back 5

cost-leadership strategy

Front 6

Period in which a product falls out of favor and the organization withdraws from the marketplace.

Back 6

decline stage

Front 7

One of 3 grand strategies. This strategy involves reduction in the organization's efforts.

Back 7

defensive strategy
(retrenchment)

Front 8

Strategy which offers products or services that are of a unique and superior value compared to those of competitors and to target a wide market.

Back 8

differentiation strategy

Front 9

Strategy by which a company operates several businesses in order to spread the risk.

Back 9

diversification

Front 10

Careful monitoring of an organization's internal and external environments to detect early signs of opportunities and threats that may influence the firm's plans.

Back 10

environmental scanning

Front 11

Not simply tactics, it is a central part of any company's strategy; it consists of using questioning, analysis, and follow through in order to mesh strategy with reality, align people with goals, and achieve results promised. (Bossidy and Charan)

Back 11

execution

Front 12

Strategy which offers products or services that are of unique and superior value compared to those of competitors and to target a narrow market.

Back 12

focused-differentiation strategy

Front 13

A projection of the future.

Back 13

forecast

Front 14

Second step of strategic-management process; it explains how the organization's mission is to be accomplished.

Back 14

grand strategy

Front 15

Second stage of product life cycle. This, the most profitable stage, is the period in which customer demand increases, the product's sales grow, and (later) the competitors may enter the market.

Back 15

growth stage

Front 16

One of three grand strategies. involves expansion-- as in sales revenues, market share, number of employees, or number of customers or (for nonrprofits) clients served.

Back 16

growth strategy

Front 17

First stage in the product life cycle; A new product is introduced to the market place.

Back 17

introduction stage

Front 18

A stage when the organization becomes very bureaucratic, large, and mechanistic. Also the third stage in the product life cycle; period in which product starts to fall out of favor, and sales and profits fall off.

Back 18

maturity stage

Front 19

The environmental factors that the organization may exploit for competitive advantage.

Back 19

organizational opportunities

Front 20

The skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission.

Back 20

organizational strengths

Front 21

The environmental factors that hinder an organization's achieving a competitive advantage.

Back 21

organizational threats

Front 22

The drawbacks that hinder an organization in executing strategies in pursuit of their mission

Back 22

organizational weaknesses

Front 23

Porter's four competitive strategies (generic strategies)

Back 23

Cost leadership, differentiation, focused differentiation, cost-focus

Front 24

product life cycle

Back 24

introduction, growth, maturity, and decline

Front 25

Strategy by which an organization under one ownership operates separate businesses that are related to one another.

Back 25

related diversification

Front 26

Creation of alternative hypothetical but equally likely future conditions.

Back 26

scenario analysis
(scenario planning, contingency planning)

Front 27

Strategy by which a company makes and sells only one product within its market.

Back 27

single-product strategy

Front 28

One of three grand strategies that involves little or no significant change.

Back 28

stability strategy

Front 29

Monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed.

Back 29

strategic control

Front 30

A five step process that involves managers from all parts of the organization in the formulation and implementation of strategies and strategic goals.

Back 30

strategic management

Front 31

Attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company. (Michael Porter)

Back 31

strategic positioning

Front 32

A large-scale action plan that sets the direction for an organization.

Back 32

strategy

Front 33

The process of choosing among different strategies and altering them to best fit the organization's needs.

Back 33

strategy formulation

Front 34

The execution of strategic plans.

Back 34

strategy implementation

Front 35

SWOT

Back 35

Strengths, Weaknesses, Opportunities, and Threats

Front 36

Situation in which the economic value of separate, related business under one ownership and management is greater than the businesses are worth separately.

Back 36

synergy

Front 37

A hypothetical extension of a past series of events into the future.

Back 37

trend analysis

Front 38

Operating several businesses that are not related to one another under one ownership.

Back 38

unrelated diversification