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14 Cards in this Set
- Front
- Back
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strategic management
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set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.
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what a strategy consists of
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core competence - a business activity that an organization does particularly well in comparison to competitors.
synergy - exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone. value creation - |
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Grand strategy
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A general plan of major actions by which an organization intends to achieve its long-term goals.
This consists of 3 categories: -Growth- internal or external Stability - pause strategy. Retrenchment - forced decline |
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divestiture
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selling off of businesses that no longer seem central to the corporation
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Globalization strategies
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Globalization - world is single marketplace. Product design and advertising are standardized.
Multidomestic - handle market independently for each country. adapts marketing and design to each country transnational - seeks both global integration and national responsiveness. Exporting - domestically focused. |
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competitive advantage
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what sets the organization apart from others and provides it with a distinctive edge in marketplace
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levels of strategy
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corporate level strategy - pertains to the organization as a whole. strategic actions relate to new business acquisitions, additions or divestment of units, plans, or product lines, and join ventures.
Business level strategy - level concerned with "How do we compete?". Pertains to each unit or line in the business. functional-level strategy - level concerned with "How do we support the business-level strategy?", pertains to all major departments. |
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portfolio strategy
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-part of corporate strategy
the organization's mix of strategic business units and products that fit together in such away as to provide the corporation with synergy and competitive advantage. |
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SBU
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Strategic business unit
a division of the organization that has a unique business mission, product line, competitors, and markets relative to other SBUs in the same corporation. |
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BCG Matrix
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A concept developed by the Boston Consulting Group that evaluates strategic business units with respect to the dimensions of business growth rate and market share.
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Porter's competitive forces and strategies
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Business-Level strategies are the result of 5 forces:
Potential new entrants - capital requirements and economies of scale are potential barriers to entry Bargaining power of buyers - Informed customers become empowered customers Bargaining power of suppliers -The concentration of suppliers and the availability of substitute suppliers are significant factors in determining supplier power. Threat of substitute products - The power of alternatives and substitutes for a company's products may be affected by cost changes or trends that will deflect buyer loyalty to companies. Rivalry among competitors - Rivalry among competitors is influenced by the preceding four forces as well as by cost and product differentiation. |
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competitive strategies (3)
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Differentiation - involved an attempt to distinguish the firm's products or services from others in the industry.
Cost leadership - aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors Focus - concentrated on a specific regional market or buyer group. |
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continuum of partnership strategies
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Low to High collaboration
preferred supplier arrangements strategic business partnering joint ventures mergers acquisitions |
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Implementation tools
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Leadership
structural design information and control systems human resources |
