Mgt300 Ch. 5 Organizational Strategy

Front 1

Resources

Back 1

the assets, capabilities, processes, information, and knowledge that na organization controls

Front 2

Competitive advantage

Back 2

providind greater value for customers than competitors can

Front 3

Sustainable competitive advantage

Back 3

when other companies cannot duplicate the value a firm is provideing to customers

Front 4

Valuable resources

Back 4

allow companies to improve their efficiency and effectiveness (Not everyone can do it)

Front 5

Imperfectly imitable resources

Back 5

(No one can copy you exactly) impossible or extremely costly to duplicate

Front 6

Rare resources

Back 6

are not controlled or possessed by many competing firms, are necessary to sustain a competitive advantage

Front 7

nonsubstituable resources

Back 7

meaning that no other resources can replace them and produce similar value or competitive advantage

Front 8

Strategic dissonance

Back 8

a discrepancy between a company's intended strategy and the strategic actions managers take when actually implementing that strategy

Front 9

SWOT

Back 9

strengths, weaknesses, opportunities, and threats

Front 10

distinctive competence

Back 10

something that a company can make, do, or perform better than its competitors

Front 11

Core capabilities

Back 11

less visible, internal decision-making routines, problem-solving processes

Front 12

environmental scanning

Back 12

invloves searching the environment for important events or issues that might affect the organization

Front 13

strategic group

Back 13

group of other companies within an industry that top manatgers choose from comparing threats and opportunities

Front 14

core firms

Back 14

central companies in a strategic group

Front 15

secondary firms

Back 15

firms that use strategies related to bu somewhat different from those of core firms

Front 16

conservative, risk-avoiding strategy

Back 16

aims to protect an existing competitive advantage

Front 17

aggressive, risk-avoiding strategy

Back 17

extend or create a sustainable competitive advantage

Front 18

Strategic reference points

Back 18

targets that manafers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage. (allows you to maintain the staus quo)

Front 19

Corporate-level strategy

Back 19

overall organizational strategy that address (what business or businesses are we in or should we be in)

Front 20

diversification

Back 20

buy stocks in a variety of companies in different industries

Front 21

Portfolio Strategy

Back 21

corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines

Front 22

Acquisitions

Back 22

purchase of a company by another company

Front 23

unrelated diversification

Back 23

creating or acquiring companies in completely unrealted businessess (clothes and food

Front 24

BCG matrix

Back 24

portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share

Front 25

BCG matrix parts

Back 25

Question marks
Stars
Cash Cows
Dogs

Front 26

Stars

Back 26

companies that have a large share of a fast-growing market

Front 27

Question marks

Back 27

companies that have a small share of a fast-growing market

Front 28

Cash cows

Back 28

companies that have a large share of a slow-growing market

Front 29

dogs

Back 29

companies that have a small share of a slow-growing market

Front 30

related diversification

Back 30

different buiness units shar similar products, manufacturing, marketing, technology, and culture

Front 31

Grand Strategy

Back 31

broad strategic plan used to help an organization achieve its strategic goals

Front 32

Types of Grand strategies

Back 32

Growth
Stability
Retrenchment/recovery

Front 33

Growth strategy

Back 33

focuses on increasing profits, revenues, market share, or the number of placesin which the company does business

Front 34

Stability Strategy

Back 34

continue doing what the company has been doing, just do it better

Front 35

Retrenchment

Back 35

turn around very poor company performance by shrinking the size or scope of the business, if large shutting down different lines of the business

Front 36

recovery

Back 36

consists of the strategic actions that a company takes to return to a growth strategy

Front 37

Character of the rivalry

Back 37

measure of the intensity of competive behavior between companies in an industry

Front 38

threat of new entrants

Back 38

measure of the degeree to which barriers to entry make it easy or difficullt for new companies to get started in an industry

Front 39

threat of substitute products or services

Back 39

measure of the ease with which customers can find substitutes for an industry's products or services

Front 40

Bargaining power or suppliers

Back 40

measure of the influence that suppliers of parts, materials, and services to firms in a n industry have on the prices of these inputs

Front 41

Bargaining power of buyers

Back 41

measure of the influence that customers have on the firm's prices

Front 42

Cost leadership

Back 42

means producing a product or service of acceptable quality at consistently lower production cost than competitors so they can offer at the lowest price

Front 43

Differentiation

Back 43

based on quality of the service being sufficiently different from the compeitors

Front 44

focus strategy

Back 44

using cost leadership or differentiation

Front 45

defenders

Back 45

seek moderate, steady growth by offering a limited range of products and services to a well-defined set of customers

Front 46

Prospectors

Back 46

seek fast growth by searching for new market opportunities encourageing risk taking, and being the first to bring innovative new products to market

Front 47

Analyzers

Back 47

blend of the defender and prospector strategies

Front 48

reactors

Back 48

do not follow a consistent strategy (react)

Front 49

Direct competition

Back 49

rivalry between two companies offering similar products and services that acknoledge each other as rivals

Front 50

market commonality

Back 50

degree to which two companies have overlapping products, services or customers in multiple markets

Front 51

resource similarity

Back 51

extent to which a competitor has similar amounts and kinds of resources that is similar assets, capabilities, processes, information, and knowledge used to create and sustain an advanage over competitors.

Front 52

attack

Back 52

competitive move designed to reduce a rival's market share or profits

Front 53

response

Back 53

countermove, prompted byu rival's attackd, designed to defend or improve a company's market share or profit.