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| A strategy is a “game plan” that enables a company to attract customers by distinguishing itself from competitors. |
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| three customer value propositions that companies can offer their target customers. |
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Definition
1. Customer Intimacy
2. Operational Excellence
3. Product Leadership |
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| Companies pursuing this value proposition understand and respond to individual customer needs better than their competitors. Ritz-Carlton, Nordstrom, and Starbucks rely primarily on a customer intimacy value proposition. |
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| companies pursuing this value proposition deliver products and services faster, more conveniently, and at a lower price than their competitors. Southwest Airlines, Wal-Mart, and The Vanguard Group rely primarily on an operational excellence value proposition. |
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| companies pursuing this value proposition offer higher quality products than their competitors. BMW, Cisco Systems, and W.L. Gore rely primarily on a product leadership value proposition. |
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| is the delegation of decision-making authority throughout an organization by providing managers with the authority to make decisions relating to their area of responsibility. |
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| shows how responsibility is divided among managers. It also shows formal lines of reporting and communication. |
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| An is a group of people united for a common purpose. |
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*consists of the major business functions that add value to a company’s products and services
*typically spans functional departments to form business processes. |
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