Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

39 Cards in this Set

  • Front
  • Back

chapter 6

chapter 6


– Iden1fying and selec1ng appropriate goals and courses of ac1on for an organiza1on


– A cluster of decisions about what goals to pursue, what ac1ons to take, and how to use resources to achieve goals

Corporate-Level Plan

Top management’s decisions pertaining to the organiza;on’s mission, overall strategy, and structure.

– Provides a framework for all other planning.

Corporate-Level Strategy

– A plan that indicates in which industries and na;onal markets an organiza;on 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

Funconal-Level Plan

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

Functonal Strategy

– A plan that indicates how func7onal managers intend to increase the value of the organiza7on’s goods and services

Time Horizon

The intended dura6on of a plan.
• Long-term plans are usually 5 years or more. • Intermediate-term plans are 1 to 5 years.
• Short-term plans are less than 1 year.

Standing Plans

– Use in programmed decision situa8ons

Single-Use Plans

– Developed for a one-8me, non-programmed issue


– general guides to ac3on.


– formal wri8en specific guides to ac3on.

Standard opera2ng procedures (SOP)

– specify an exact series of ac3ons to follow


integrated plans achieving specific goals


– specific ac;on plans to complete programs.

scenario planning 6 factors

Political, Economic, social, technological, legal, environmental

Mission Statement

A broad declara4on of an organiza4on’s purpose that iden4fies the organiza4on’s products and customers and dis4nguishes the organiza4on from its compe4tors

Defining the Business

Who are our customers?

– What customer needs are being sa.sfied? – How are we sa.sfying customer needs

Low-Cost Strategy

Driving the organiza)on’s total costs down below

the total costs of rivals


– Dis)nguishing an organiza)on’s products from the products of compe)tors on dimensions such as product design, quality, or aDer-sales service

Ver$cal Integra$on

– expanding a company’s opera%ons either backward into an industry that produces inputs for its products or forward into an industry that uses, distributes, or sells its products

Concentra)on on a Single Industry

– reinves)ng a company’s profits to strengthen its compe))ve posi)on in its current industry


– expanding a company’s business opera+ons into a new industry in order to produce new kinds of valuable goods or services


– entering a new business or industry to create a compe++ve advantage in one or more of an organiza+on’s exis+ng divisions or businesses

Unrelated diversifica/on

– entering a new industry or buying a company in a new industry that is not related in any way to an organiza+on’s current businesses or industries


– making products at home and selling them abroad


– selling at home products that are made abroad


allowing a foreign organiza(on to take charge of manufacturing and distribu(ng a product in its country in return for a nego(ated fee


– selling to a foreign organiza(on the rights to use a brand name and opera(ng know-how in return for a lump-sum payment and a share of the profits

Strategic alliance

– managers pool resources with those of a foreign

– Organiza(ons agree to share risk and reward

Joint venture

strategic alliance among companies that agree to jointly establish and share the ownership of a new business

Wholly Owned Foreign Subsidiary

– managers invest in establishing produc(on opera(ons in a foreign country independent of any local direct involvement

strategic leadership

the ability of the CEO to portray a compelling vision of what they want their organization to achieve

strategy formulation

the development of a set of corporate business and functional strategy that allows a organization to accomplish its mission and achieve its goals


permanent ongoing intense competition brought about in an industry by changes in technology or changing consumer taste

Focused Low-Cost

– Serving only one market segment and being the

lowest-cost organiza)on serving that segment

Focused Differen3a3on

– Serving only one market segment as the most differen)ated organiza)on serving that segment