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39 Cards in this Set
- Front
- Back
chapter 6 |
chapter 6 |
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Planning |
– Iden1fying and selec1ng appropriate goals and courses of ac1on for an organiza1on |
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Strategy |
– A cluster of decisions about what goals to pursue, what ac1ons to take, and how to use resources to achieve goals |
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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. |
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Corporate-Level Strategy |
– A plan that indicates in which industries and na;onal markets an organiza;on intends to compete |
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Business-Level Plan |
Divisional managers’ decisions pertaining to divisions long-term goals overall strategy, and structure |
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Business-Level Strategy |
– A plan that indicates how a division intends to compete against its rivals in an industry |
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• Funconal-Level Plan |
– Functional managers’ decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals |
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Functonal Strategy |
– A plan that indicates how func7onal managers intend to increase the value of the organiza7on’s goods and services |
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Time Horizon |
The intended dura6on of a plan. |
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• Standing Plans |
– Use in programmed decision situa8ons |
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• Single-Use Plans |
– Developed for a one-8me, non-programmed issue |
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Policies |
– general guides to ac3on. |
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Rules |
– formal wri8en specific guides to ac3on. |
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• Standard opera2ng procedures (SOP) |
– specify an exact series of ac3ons to follow |
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Programs |
integrated plans achieving specific goals |
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Project |
– specific ac;on plans to complete programs. |
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scenario planning 6 factors |
Political, Economic, social, technological, legal, environmental |
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• 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 |
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Defining the Business |
Who are our customers? – What customer needs are being sa.sfied? – How are we sa.sfying customer needs |
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• Low-Cost Strategy |
Driving the organiza)on’s total costs down below the total costs of rivals |
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Differen3a3on |
– Dis)nguishing an organiza)on’s products from the products of compe)tors on dimensions such as product design, quality, or aDer-sales service |
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• 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 |
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Concentra)on on a Single Industry |
– reinves)ng a company’s profits to strengthen its compe))ve posi)on in its current industry |
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• Diversifica*on |
– expanding a company’s business opera+ons into a new industry in order to produce new kinds of valuable goods or services |
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• RelatedDiversifica/on |
– 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 |
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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 |
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• Expor&ng |
– making products at home and selling them abroad |
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• Impor&ng |
– selling at home products that are made abroad |
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Licensing |
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 |
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Franchising |
– 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 |
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• Strategic alliance |
– managers pool resources with those of a foreign company |
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• Joint venture |
strategic alliance among companies that agree to jointly establish and share the ownership of a new business |
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Wholly Owned Foreign Subsidiary |
– managers invest in establishing produc(on opera(ons in a foreign country independent of any local direct involvement |
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strategic leadership |
the ability of the CEO to portray a compelling vision of what they want their organization to achieve |
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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 |
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hyper-compitition |
permanent ongoing intense competition brought about in an industry by changes in technology or changing consumer taste |
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• Focused Low-Cost |
– Serving only one market segment and being the lowest-cost organiza)on serving that segment |
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Focused Differen3a3on |
– Serving only one market segment as the most differen)ated organiza)on serving that segment |