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51 Cards in this Set

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This comes from operating in successful ways that are difficult to imitate
Competitive Advantage
A comprehensive plan guiding resource allocation to achieve long-term organization goals
Strategy
Focuses and applies organizational energies on a unifying and compelling target or goal
Strategic Intent
the process of formulating and implementing strategies to acclomplish long-term goals and sustain competitive advantage.
strategic management
Creating a new strategy by first assessing existing strategies, the organization, and its environment
strategy formulation
the process of allocating resources and putting strategies into action
strategy implementation
the purpose of an organization's reason for existence in society
mission
individuals and groups directly affected by an organization and its acclomplishments (customers, shareholders, suppliers, creditors, community groups)
stakeholders
the predominant value system for the organization as a whole
organizational culture
these direct activities toward key and specific performance results.
operating objectives
Profitability, market share, human talent, financial health, cost efficiency, product quality, innovation, and social responsibility are all types of __________ _________
operating objectives
examines organizational strengths and weaknesses and environmental opportunities and threats
swot analysis
a special strength that gives an organization a competitive advantage
core competency
The five strategic forces, according to Michael Porter, are....
competitors, new entrants, suppliers, customers, and substitutes
an industry in which rivalry among competitors is intense, substantial threats exist in the form of possible new entrants and substitute products, and suppliers and buyers are very powerful in bargaining over such things as price and quality
unattractive industry
this industry has less existing competition and few threats from new entrants or substitutes, and low bargaining among suppliers and buyers
attractive industry
sets long term direction for the enterprise and directs it to sustainable competitive advantage
corporate strategy
identifies how a division or strategic business unit will compete in its product or service domain
business strategy
this is often used to describe a single business firm or a component that operates with a major business line within a larger enterprise
strategic business unit (sbu)
guides the use of organizational resources to implement business strategy, guides activities within one specific area of operations
functional strategy
pursue an increase in size and the expansion of current operations
growth strategies
growth through _________ is within the same business area
concentration
growth through __________ is by acquisition of or investment in new and different business areas
diversification
involves growth by acquiring new businesses or entering business areas that are related to what one already does
related diversification
involves growth by acquiring businesses or entering business areas that are different from what one already does
unrelated diversification
when a business acquires suppliers or distributors
vertical integration
seeks to correct weaknesses by making changes to current ways of operating
retrenchment strategy
this involves making major changes to reduce the scale and or mix of operations, with the twin goals of consolidating to gain short-term efficiencies and taking time to craft new strategies to improve future success
restructuring
decreases the size of operations
downsizing
selling off parts of the organization to refocus on core competencies, cut costs, and improve operating efficiency
divestiture
tends to view the world as one large market, trying to standardize products and their advertising for use everywhere
globalization
customizes products and their advertising to fit the local needs of different countries or regions
multidomestic strategy
seeks efficiencies of global operations with attention to local markets
transnational strategy
organizations that join together in partnership to pursue an area of mutual interest
strategic alliance
the strategy of working with rivals on projects of mutual benefit
co-opetition
strategically uses the internet to gain competitive advantage
e-business strategy
uses IT and web portals to link organizations vertically in supply chains
B2B business strategy
uses IT and web portals to link businesses with customers
B2C business strategy
Porter's 4 competitive strategies
differentiation, cost leadership, focused differentiation, focused cost leadership
where the organizations resources and attention are directed toward making its products appear different from those of the competition
differentiation
where the organizations resources and attention are directed toward minimizing costs to operate more efficiently than the competition
cost leadership
where the organization concentrates on one special market segment and tries to offer customers in that segment a unique product
focused differentiation
where the organization concentrates on one special market segment and tries in that segment to be the provider with lowest costs
focused cost leadership
offers products that are unique and different from the competition
differentiation strategy
seeks to operate with lower costs than competitors
cost leadership strategy
approach seeks the best mix of investments among alternative business opportunities
portfolio planning
analyzes business opportunities according to market growth rate and market share
BCG matrix
develops over time as managers learn from and respond to experience
emergent strategy
the system of control and monitoring of top management performance that is excercised by boards of directors and other major stakeholder representatives
corporate governance
inspires people to continuously change, refine, and improve strategies and their implementation
strategic leadership
A __________ needs to make sure that everyone understands the strategy. He/She must be a teacher and a great communicator.
strategic leader.