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;
25 Cards in this Set
- Front
- Back
|
Explain purpose and values; Provide a basis for its goals/plans; State its primary competitive scopes |
Purpose of an organization mission statement |
|
|
Phrases of organizational planning |
Plan develolment; translation; operational planning and execution |
|
|
4 Aspects of competitive advantage |
Target customers; core competencies; synergistic thinking; value |
|
|
Define synergy |
Synergy exists when a combination of formerly separate elements has a greater effect than the sum of their individual effects |
|
|
List 5 operations strategies |
Cost; quality; delivery; flexibility; service |
|
|
Michael Porters generic strategies model treats each competitive advantage as 1 and 2... |
Cost Advantage and Differentiation Advantage |
|
|
What are Michael Porters 4 generic strategies |
Cost Leadership; Differentiation; Focused strategy: Cost; Focused Strategy: Differentiation |
|
|
4 quadrants of the Boston Consulting Groups growth- share mox |
Dogs- low MS low GR; QUESTION marks - low MS high BG; cash cows - high MS, low BG; Stars - high MS high BG |
|
|
Michael Porters 5 competitive forces |
Rivalry among established firms; threat of new entrants; threat of substitutes; bargaining power of customers; bargaining power of suppliers |
|
|
Globalization |
The degree to which ideas, information, data, investments, and trade cross national borders |
|
|
What are MNCs |
Multinational corporations: also known as global, stateless, or transnational corporations |
|
|
Define global outsourcing (offshoring) |
The use of cheaper resources in other countries |
|
|
Four methods of expanding into international markets |
Direct investments; indirect export strategy operating through an intermediary; exporting; licensing |
|
|
Define political risk |
The risk of economic loss from politically motivated actions of governments |
|
|
What is culture |
The distinct set of values, beliefs, and symbols that guide patterns of behavior in a group |
|
|
Economic integration |
The joining of the markets from two or more countries into a free-trade zone |
|
|
Four broad global strategies |
Multinational (transnational); global; international; multilocal (or multidomestic) |
|
|
Define global strategy |
Seeks the benefits of localization (flexibility, proximity, and adaptability) and global integration |
|
|
A strategy is a plan to... |
Allocate resources, obtain a competitive advantage, and attain goals |
|
|
What is regional strategy |
Combines elements of multinational, international, and multilocal strategies. Create regional products and a regional value chain |
|
|
What is a multinational strategy |
Adopts a portfolio approach. The product is customized for each market, and higher production costs are incurred |
|
|
What is the disadvantage of a multilocal or multidomestic strategy? |
It has increasing costs and decreasing economies of scale |
|
|
What is cost strategy |
It's successful when the enterprise is the low-cost producer. However, the product or commodity tends to be undifferentiated in these cases, the market is often very large and the competition tends to be intense because of the possibility of high-volume sales |
|
|
This strategy regards the world as one market. It is typical to have faster production and lower production costs. In addition, they are primarily managed from one central country, even if products are sold across the world |
Global strategy |
|
|
What does cost leadership strategy (Michael Porter) |
A firm with a broad competitive scope that has high sales volume, low margins, and efficient supply and distribution channels will choose this strategy. |
