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14 Cards in this Set
- Front
- Back
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general strategy is important for many big firms. Whose general strategy best equips them to enter the electric car market GM or Google? why? |
GM is best equipped. They have big factories, and can produce mass market cars easier. DISTRIBUTION CHANNELS is very important. |
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A firm develops its strategies by matching BLANK with industry BLANK. (think SWOT) |
core competencies with industry opportunities. |
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what are the two levels of general strategy? |
organizational or corporate level, business unit level. |
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explain a cost leadership strategy. |
simplifying the product (minimal acceptance standards for customers), standardizing processes, monitoring (tight controls on the standard). |
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explain a differentiation strategy. |
based on the ability to distinguish your product or service from competitors. done through marketing input costs are higher, quality of products tend to be higher. the cost is passed on to the target customers. |
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what is niche strategy? |
focus on a small market. can be cost leadership or differentiated. |
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explain responsibility centers. |
an organizational unit headed by a manager who is responsible for its activities. organizes people and resources into work units, which impact on the corporate strategy implementation. "decentralization" |
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there are two factors that drive decentralization; internal and external factors. explain both. |
internal factors: driven by information overload, and needs to begin delegating decision making. external factors: an organization moves to a dynamic environment. That is one that is changing, new technology, different competitor strategies etc. |
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quickly describe and Give me an example of centralized and decentralized organizations. |
centralized: lower level managers have little to no freedom to make decisions. Government of Canada. Decentralized: decision making is spread throughout the organization. West Jet or Google. |
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what is efficiency and what is effectiveness? |
efficiency: the ratio of outputs to inputs. effectiveness: determined by the relationship between outputs and objectives. |
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what is a controllable cost, and what is an uncontrollable cost? |
controllable cost: is any cost that is influenced by a managers decision and actions. Uncontrollable cost: is any cost that cannot be affected by the management of a responsibility center within a given time span. |
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what are the four categories of responsibility centers? |
revenue centers expense center profit center investment center |
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what is the difference between investment and profit centers? |
they have "additional" costs. performance is assessed against pre set expectations of return usual residual income. |
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what are some of the actions managers can take that hurt companies in the long term? |
neglecting maintenance, R&D and training, slashing prices at the end of the fiscal year, purchasing lower quality inputs, skimping on the quality control. |
