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Mgmt 415 Test 1
n/a
40
Management
Undergraduate 4
10/05/2011

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Term
strategy
Definition
competitive moves and business approaches that managers are employing to grow the business, attract and please customers, compete successfully, conduct operations, and achieve the targeted levels of organizational performance
Term
Best-performing strategies have some kind of distinctive
Definition
AH HA element that results in customer-appealing product attributes and produces a competitive edge
Term
sustainable competitive advantage
Definition
achieved when an attractive number of buyers are drawn to purchase a company's product or service rather than those of competitors and when the basis for such purchases is durable, despite the efforts of competitors to overcome or otherwise erode the appeal of tis product offering
Term
4 Frequent and Dependable Strategic Approaches to setting a firm apart
Definition
1)striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage over rivals; 2)outcompeting rivals based on such differentiating features as higher quality, wider product selection, added performance, value-added services, more attractive styling, technological superiority, or unusually good value for the money; 3)focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers comprising the niche; 4)developing expertise and resource strengths that give the company competitive capabilities that rivals cant easily imitate or trump with capabilities of their own
Term
What always ranks center stage when crafting a strategy?
Definition
the quest for sustainable competitive advantage because of the tight connection between competitive advantage and profitability
Term
what is always a work in progress?
Definition
crafting a strategy
Term
2 things that blend to make a typical company strategy
Definition
1)proactive actions to improve the company's financial performance and secure a competitive edge; 2)as-needed reactions to unanticipated developments and fresh market conditions
Term
2 makers of an ethical strategy
Definition
1)it does not entail actions and behaviors that cross the line from "should do" to "should not do"; 2)it allows management to fulfill its ethical duties in a manner that takes into account the legitimate interests of all stakeholders
Term
2 crucial elements of a company's business model
Definition
1)customer value proposition; 2)profit proposition
Term
customer value proposition
Definition
the buyer wants and needs it seeks to satisfy and whether customers will consider the price charged to be a "good value"
Term
profit proposition
Definition
"formula" for generating profits in the course of pursuing its customer value proposition (the strategy, key resources, and business processes it will utilize to generate the sales volumes, revenues, costs, and profit margins needed to yield good profits)
Term
business strategy
Definition
sets forth how its strategy and operating approaches will create value for customers while at the same time generating ample revenues to cover costs and realize a profit
Term
3 ways a winning strategy must fit into an enterprise
Definition
external and internal situation, build sustainable competitive advantage, and improve a company's performance
Term
2 kinds of performance improvements that tell the most about the caliber of a company's strategy
Definition
1)gains in profitability and financial strength; 2)gains in the company's competitive strength and market standing
Term
best test of managerial excellence:
Definition
excellent execution of an excellent strategy
Term
5 steps to create and execute a strategy
Definition
1)developing a strategic vision; 2)setting objectives; 3)crafting a strategy to achieve the objectives; 4)implementing and executing the chosen strategy efficiently and effectively; 5)monitoring developments, evaluating performance, and initiating corrective adjustments
Term
strategic vision
Definition
the route a company intends to take in developing and strengthening its business; it lays out the company's strategic course in preparing for the future
Term
vision statement
Definition
should clearly convey a company's long-term direction, rather than hide it in foggy language
Term
Do's for a vision statement
Definition
be graphic, forward-looking and directional, keep it focused, have wiggle room, be sure the journey is feasible, indicate why the directional path makes good business sense
Term
Don'ts for a vision statement
Definition
don't be vague or incomplete, dwell on the present, use overly broad language, state the vision in bland or uninspiring terms, be generic, rely on superlatives
Term
the defining characteristic of a well-conceived strategic vision is...
Definition
what it says about the company's future strategic course
Term
distinction between a strategic vision and a mission statement
Definition
strategic vision protrays a company's FUTURE business scope; mission statement typically describes its present business and purpose
Term
what is more correctly an objective and a result of what a company does?
Definition
profit
Term
strategy
Definition
an action managers take to achieve one or more of an organization's goals; entail difficult to reverse commitments of resources
Term
strategic management process
Definition
the process by which managers choose a set of strategies that will allow a company to achieve superior performance
Term
competitive advantage
Definition
whole focus of a strategy; a firm's profitability for all firms in its industry
Term
sustained competitive advantage
Definition
a firm maintains competitive advantage for a number of years
Term
business model
Definition
management's model of how strategy will allow the company to gain competitive advantage and achieve superior profitability
Term
3 levels of strategy
Definition
corporate, business, functional; as well as institutional
Term
intended strategies
Definition
strategies an organization plans to put into action
Term
emergent strategies
Definition
unplanned strategies
Term
realized strategies
Definition
the product of whatever intended strategies are actually put into action and of any emergent strategies
Term
groupthink
Definition
group of executives with same background
Term
cost leadership
Definition
attaining, then using the lowest total cost basis as a competitive advantage
Term
differentiation
Definition
using product features or services to distinguish the firm's offerings from its competitors
Term
market niche (focus)
Definition
concentrating competitively on a specific market segment
Term
examples of corporate-level strategies
Definition
vertical integration, diversification, strategic alliances, acquisitions, new ventures, business portolio restructuring
Term
examples of business-level strategies
Definition
cost leadership, differentiation, market niche (focus)
Term
functional level strategies
Definition
focus is on improving the effectiveness and efficiency of operations within a company
Term
examples of functional level strategies
Definition
manufacturing, marketing, materials management, research and development, human resources, IT
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