Mgt Chapter 8

Front 1

Planning

Back 1

Identifying and selecting appropriate goals and courses of action; one of the four principal tasks 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

Corporate-Level Plan

Back 4

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

Front 5

Corporate-Level Strategy

Back 5

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

Front 6

Business-Level Plan

Back 6

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

Front 7

Business-Level Strategy

Back 7

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

Front 8

Functional-Level Plan

Back 8

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

Front 9

Functional-Level Strategy

Back 9

A plan of action to improve the ability of each of an organization's functions to perform is task-specific activities in ways that add value to an organization's goods and services.

Front 10

Time Horizon

Back 10

The intended duration of a plan.

Front 11

Strategic Leadership

Back 11

The ability of the CEO and top managers to convey a compelling vision of what they want the organization to achieve to their subordinates.

Front 12

Strategy Formulation

Back 12

The development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals.

Front 13

SWOT Analysis

Back 13

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

Front 14

Hypercompetition

Back 14

Permanent, ongoing, intense competition brought about an industry by advancing technology or changing customer tastes.

Front 15

Low-Cost Strategy

Back 15

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

Front 16

Differentiation Strategy

Back 16

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

Front 17

Focused Low-Cost Strategy

Back 17

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

Front 18

Focused Differentiation Strategy

Back 18

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

Front 19

Concentration on a Single Industry

Back 19

Reinvesting a company's profits to strengthen its competitive position in its current industry.

Front 20

Vertical Integration

Back 20

Expanding a company's operations either backward into an industry that produces inputs for its products or forward into an industry that uses, distributes, or sells its products.

Front 21

Diversification

Back 21

Expanding a company's business operations into a new industry in order to produce new kinds of valuable goods or services.

Front 22

Related Diversification

Back 22

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

Front 23

Synergy

Back 23

Performance gains that result when individuals and departments coordinate their actions.

Front 24

Unrelated Diversification

Back 24

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 25

Global Strategy

Back 25

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

Front 26

Multidomestic Strategy

Back 26

Customizing products and marketing strategies to specific national conditions.

Front 27

Exporting

Back 27

Making products at home and selling them abroad.

Front 28

Importing

Back 28

Selling products at home that are made abroad

Front 29

Licensing

Back 29

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 30

Frnchising

Back 30

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 31

Strategic Alliance

Back 31

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 32

Joint Venture

Back 32

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

Front 33

Wholly Owned Foreign Subsidiary

Back 33

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