Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
35 Cards in this Set
- Front
- Back
Planning
|
Identifying and selecting appropriate goals and courses of action; one of the four principal functions of management.
|
|
Strategy
|
A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals.
|
|
Mission statement
|
A broad declaration of an organization's purpose that identifies the organization's products and customers and distinguishes the organization from its competitors.
|
|
Division
|
A business unit that has its own set of managers and functions or departments and competes in a distinct industry.
|
|
Divisional managers
|
Managers who control the various divisions of an organization.
|
|
Corporate-level plan
|
Top management's decisions pertaining to the organization's mission, overall strategy, and structure
|
|
Corporate-level strategy
|
A plan that indicates in which industries and national markets an organization intends to compete.
|
|
Business-level plan
|
Divisional managers' decisions pertaining to divisions' long-term goals, overall strategy, and structure.
|
|
Business-level strategy
|
A plan that indicates how a division intends to compete against its rivals in an industry.
|
|
Function
|
A unit or department in which people have the same skills or use the same resources to perform their jobs.
|
|
Functional managers
|
Managers who supervise the various functions, such as manufacturing, accounting, and sales, within a division.
|
|
Functional-level plan
|
Functional managers' decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals.
|
|
Functional-level strategy
|
A plan that indicates how a function intends to achieve its goals.
|
|
Time horizon
|
The intended duration of a plan.
|
|
Scenario planning
|
The generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions; also called contingency planning
|
|
Strategy formulation
|
Analysis of an organization's current situation followed by the development of strategies to accomplish its mission and achieve its goals
|
|
SWOT analysis
|
A planning exercise in which managers identify organizational strengths (S), weaknesses (W), environmental opportunities (O), and threats (T).
|
|
Diversification
|
Expanding operations into a new business or industry and producing new goods or services.
|
|
Related diversification
|
Entering a new business or industry to create a competitive advantage in one or more of an organization's existing divisions or businesses.
|
|
Synergy
|
Performance gains that result when individuals and departments coordinate their actions
|
|
Unrelated diversification
|
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
|
|
Global strategy
|
Selling the same standardized product and using the same basic marketing approach in each national market.
|
|
Multidomestic strategy
|
Customizing products and marketing strategies to specific national conditions.
|
|
Exporting
|
Making products at home and selling them abroad.
|
|
Importing
|
Selling at home products that are made abroad.
|
|
Licensing
|
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
|
|
Franchising
|
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.
|
|
Strategic alliance
|
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.
|
|
Joint venture
|
A strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business.
|
|
Wholly owned foreign subsidiary
|
Production operation established in a foreign country independent of any local direct involvement.
|
|
Vertical integration
|
A strategy that allows an organization to create value by producing its own inputs or distributing and selling its own outputs.
|
|
Low-cost strategy
|
Driving the organization's costs down below the costs of its rivals.
|
|
Differentiation strategy
|
Distinguishing an organization's products from the products of competitors in dimensions such as product design, quality, or after-sales service.
|
|
Focused low-cost strategy
|
Serving only one segment of the overall market and being the lowest-cost organization serving that segment.
|
|
Focused differentiation strategy
|
Serving only one segment of the overall market and trying to be the most differentiated organization serving that segment.
|