mgt ch 8 mdtrm 2
Terms
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- distinctive competence
- an organizational strength possessed by only a small number of competing firms
- resource deployment
- how an organization distributes its resources across the areas in which it competes
- corporate level strategy
- the set of strategic alternatives from which an organization chooses as it manages its operations simultaneousely across several industries and several markets.
- strategy formulation
- the set of processes invovled in creating or determining the strategies it focuses on the content of strategies
- sustained competitive advantage
- a competitive advantage that exisits after all attempts at strategic imitation have ceased
- organizational opportunity
- an area in the environment that, if exploited, may generate higher performance
- organizational threat
- an area in the environment that increases the difficulty of an organizations achieving high performance
- product life cycle
- a model that protrays how sales volume for products changes over the life of products
- diversification
- the numer of different businesses that an organization is engaged in and the extent to which these businesses are related to one another
- related diversification
- a strategy in which an organization operates in several businesses that are somehow linked with one another
- acquistion
- the purchase of a firm by a firm that is considerably larger
- strategy
- a comprehensive plan for accomplishing an organizations goals
- strategic management
- a comprehensive and ongoing management process aimed at formulating and implementing effective strategies a way of approaching business opportunities and challenges
- effective strategy
- a strategy that promotes a superior alignment between the organization and its environment and the achievement of strategic goals
- scope
- when applied to strategy it specifies the range of markets in which an organization will compete
- business level strategy
- the set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market.
- strategy implementation
- the methods by which strategies are operationalized or executed within the organization it focuses on the processes through which strategies are achieved
- deliberate strategy
- a plan of action that an organization chooses and implements to support specific goals.
- emergent strategy
- a pattern of action that develops over time in an organization in the absence of mission and goals or despite mission and goals
- SWOT
- an acronmy that stands for strengths, weaknesses, opportunities, and threats.
- organizational strength
- a skill or capability that enables an organization to conceive of and implement its strategies
- common strength
- a skill or capaility held by numerous competing firms
- strategic imitation
- the practice of duplicating another organization's distinctive competence and therby implementing a valuable strategy.
- organizational weakness
- a skill or capability that does not enable an organization to choose and implement strategies that support its mission
- competitive disadvantage
- a situation in which an organization is not implementing valuable strategies that are beind implemented by competing organizations
- differentiation strategy
- a strategy in which an organization seeks to distinguish itself from competitors through the quality of its products or services.
- overall cost leadership strategy
- a strategy in which an organization attempts to gain a competitive advantage by reducing its costs below the costs of competing firms.
- focus strategy
- a strategy in which an organization concentrates on a specific regional market, product line, or group of buyers
- prospector strategy
- a strategy in which the firm encourages creativity and flexibility and is often decentrailized
- defender strategy
- a strategy in which the firm focuses on lowering costs and improving the performance of current products
- analyzer strategy
- a strategy in which the firm attempts to maintain its current businesses and to be somewhat innovative in new businesses
- reactor strategy
- a strategy in which a firm has no consistent approach to strategy
- single product strategy
- a strategy in which an organization manufactures just one product or service and sells it in a single geographic market
- unrelated diversification
- a strategy in which an organization operates multiple businesses that are not logically associated with one another
- backward vertical integration
- an organization's beinning the business activities fromerly conducted by its suppliers.
- forward vertical integration
- an organization's beginning the business activities formerly conducted by its customers
- merger
- the purchase of one firm by another frim of approximately the same size
- acquisition
- the purchase of a firm by a firm that is considerably larger
- portfolio management technique
- a method that diversified organizations use to determine which businesses to engage in and how to manage these businesses to maximize corporate performance.
- BCG matrix
- a method of evaluating businesses relative to the growth rate of their market and the organization'sshare of the market
- GE Business screen
- a method of evaluating businesses along two dimensions: 1 industry attractiveness and 2 competitive position; in general, the more attractive the industry and the more competitve the position, the more an organization should invest in a business.
- home replication strategy
- International strategy in which a company uses the core comnpetency or frim specific advantage it developed at home as its main competitive weapon in the foreign markets that it enters
- multidomestic strategy
- international strategy in which a company manages itself as a collection of relatively independent operating subsidaries, each of which forcuses on a specific domestic market.
- global strategy
- international strategy in which a company views the world as a single marketplace and has as its primary goal the creation of standardized goods and services that will address the needs of customers worldwide.
- transnational strategy
- international stratgey in which a company attempts to combine the benefits of global scale efficiencies with the benefits and advanatges of local responsiveness