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37 Cards in this Set
- Front
- Back
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Strategy
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A comprehensive plan guiding resource allocation to achieve long-term goals.
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What are 4 big Strategy Issues?
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-Determining competitive advantage
-Knowing you core benefit proposition -Identifying what is unique about the bus. -Creating a sustainable advantage |
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What are the 3 strategy levels in business?
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Business,
Corporate, Functional |
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Business Strategy
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Identifies how a division or strategic business unit will compete in its product or service domain.
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Corporate Strategy
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Sets long-term direction for the total enterprise.
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Functional Strategy
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Guides activities within one specific area of operations.
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What are the 4 getting bigger strategies?
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1. Basic Growth – within current operations
2. Concentration – expansion current business 3. Diversification – related or new business 4. Vertical Integration – buy partners in supply chain |
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What is B2B?
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B2B is a business strategy that uses IT and Web portals to link organizations vertically in supply chains. (Business to Business)
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What is B2C?
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B2C is a business strategy that uses IT and Web portals to link businesses with customers. (Business to Customers)
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Concentration
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Growth through concentration means expansion within an existing business area.
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Vertical Integration
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Growth through Vertical Integration occurs by acquiring suppliers or distributors.
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Growth Strategy
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Involves expansion of the organizations current operations.
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Diversification
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Growth through Diversification means expansion by entering related or new business areas.
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What are the basic Getting Smaller Strategies?
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1. Restructure
2. Downsizing 3. Bankruptcy 4. Liquidation 5. Divestiture (sold) |
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Explain the Blockbuster example (getting smaller strategy).
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Blockbuster filed for Chapter 11 Bankruptcy in 2011. The DISH Network bought Blockbuster. This was a Repositioning Strategy
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Liquidation
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occurs when a business closes and sells its assets to pay creditors.
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Restructuring
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Reduces the scale or mix of operations.
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Chapter 11 Bankruptcy
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Protects an insolvent firm from creditors during a period of reorganization to restore profitability.
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Downsizing
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Decreases the size of operations.
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Divestiture
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Involves selling off parts of the organization to refocus attention on core business areas.
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Globalization Strategy
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Adopts standardized products and advertising for use worldwide.
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Co-opetition
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The strategy of working with rivals on projects of mutual benefit.
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Strategy Formulation (steps)
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1. Review Current Situation
2. Internal/External Analysis, SWOT 3. Develop new strategy |
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Strategy Implementation (steps)
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1. Implement strategies
2. Evaluate results |
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Mission (Remember Jerry McGuire Example)
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-Current
-Goals/objectives -Internal driven -Defines the companies business, its objectives and approach to reach those objectives |
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Vision (Remember Jerry McGuire Example)
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-Future
-Beliefs/values -External Driven -Describes the future desired position of the company. |
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SWOT analysis
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Examines organizational STRENGTHS and WEAKNESSES, as well as environmental OPPORTUNITIES and THREATS.
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A SWOT analysis can be used on...
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ANYTHING
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What are Porter's 5 Forces?
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Force 1: Competitors
Force 2: New Entrants Force 3: Suppliers Force 4: Customers Force 5: Substitutes |
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Force 1: Competitors
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Intensity of rivalry among firms in the industry
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Force 2: New Entrants
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Threats of new competitors entering the market
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Force 3: Suppliers
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Bargaining powers of suppliers
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Force 4: Customers
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Bargaining powers of buyers
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Force 5: Substitutes
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Threats of substitute products or services
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List 5 things we could do a SWOT analysis on.
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1. Person-you and your life
2. Sports team or individual 3. Product - New or existing 4. Division 5. Function |
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Mission (remember Jerry McGuire example)
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The mission is the organization's reason for existence in society.
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BCG Matrix
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The BCG Matrix analyzes business opportunities according to market growth rate and market share.
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