Term
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Definition
determines competitive advantage
the breadth of a company's target mkt |
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Term
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Definition
low cost competitve strategy
broad mass mkt
effieicent scale facilities
cost reductions
cost minimization |
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Term
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Definition
broad mass mkt
unique product or service
premiums charged
less price sensitivity |
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Term
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Definition
low cost comp strategy
focus on mkt segment
nich focus
cost advantage in mkt segment |
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Term
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Definition
Specific group or geographic market focus
Differentiation in target market
Special needs of narrow target market |
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Term
| generic competive strategies |
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Definition
lower cost strategy - greater efficiencies than competion
Differentiation strategy - unique superior value, quality, features, service |
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Term
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Definition
1. performance
2. Features - bells and whistles that substitue the basic functions
3. reliability
4. Conformance - degree to which a product meets standards
5. Durability
6. Serviceability
7. Asthetics - how a product looks, feels, sounds, etc
Perceived quality - overall reputation of product |
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Term
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Definition
fragmented - many small and medium sized firmes compete
consolidated - mkt dominated by few large co's |
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Term
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Definition
Frontal Assault - goes head to head with competitor
Flanking Maneuver - firm mat attack a part of mkt where the competitor is weak
Bypass Attack - cut the mkt from defender by offereing a new type of product that makes defender's product unnecessary
Encirclement -
Guerrilla Warfare - hit and run...small assaults on diff mkt segments held by competitior |
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Term
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Definition
raise structural barriers - entry barriers act to block a challenger's avenues of attack
increase expected retaliation -
lower the inducement for attack - lower expectations of future profits in the industry |
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Term
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Definition
| reduce ouput and raise prices in order to get around normal supply and demend |
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Term
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Definition
long term cooperative arrangemtn between two or more independent firms for mutual economic gain
obtain new capabilities
obtain access to specific mkts
reduce fin risk
reduce political risk |
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Term
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Definition
| partnership of similar companies in similar industries that pool resources to gain a benifit that is too expensive to develop alone |
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Term
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Definition
| competitive activity formed by 2 or more busiesses that create a separate business entity and allocate ownership, responsibilities, and risk to each member |
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Term
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Definition
| agreement in which the licensing firm grants rights to another firm in another mkt to produce or sell a product |
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Term
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Definition
| strong close alliance in which one CO forms a long term arrangement with a key supplier or distributor for mutual advantage |
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Term
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Definition
Specific group or geographic market focus
Differentiation in target market
Special needs of narrow target market |
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Term
| generic competive strategies |
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Definition
lower cost strategy - greater efficiencies than competion
Differentiation strategy - unique superior value, quality, features, service |
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Term
|
Definition
1. performance
2. Features - bells and whistles that substitue the basic functions
3. reliability
4. Conformance - degree to which a product meets standards
5. Durability
6. Serviceability
7. Asthetics - how a product looks, feels, sounds, etc
Perceived quality - overall reputation of product |
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Term
|
Definition
fragmented - many small and medium sized firmes compete
consolidated - mkt dominated by few large co's |
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Term
|
Definition
Frontal Assault - goes head to head with competitor
Flanking Maneuver - firm mat attack a part of mkt where the competitor is weak
Bypass Attack - cut the mkt from defender by offereing a new type of product that makes defender's product unnecessary
Encirclement -
Guerrilla Warfare - hit and run...small assaults on diff mkt segments held by competitior |
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Term
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Definition
raise structural barriers - entry barriers act to block a challenger's avenues of attack
increase expected retaliation -
lower the inducement for attack - lower expectations of future profits in the industry |
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Term
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Definition
| reduce ouput and raise prices in order to get around normal supply and demend |
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Term
|
Definition
long term cooperative arrangemtn between two or more independent firms for mutual economic gain
obtain new capabilities
obtain access to specific mkts
reduce fin risk
reduce political risk |
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Term
|
Definition
| partnership of similar companies in similar industries that pool resources to gain a benifit that is too expensive to develop alone |
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Term
|
Definition
| competitive activity formed by 2 or more busiesses that create a separate business entity and allocate ownership, responsibilities, and risk to each member |
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Term
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Definition
| agreement in which the licensing firm grants rights to another firm in another mkt to produce or sell a product |
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Term
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Definition
| strong close alliance in which one CO forms a long term arrangement with a key supplier or distributor for mutual advantage |
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Term
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Definition
growth strategies
stability strategies
retrenchment strategies |
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Term
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Definition
| transaction involiving two or more co's in which stock is exchanged but in which only one co survives |
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Term
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Definition
| purchase of a company that is completely absorbed as an operating subsidiary of acquiring corp |
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Term
vertical growth
vertical integration |
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Definition
achieved by taking over a function preciously provied by a supplier or a distributor
degree to which a firm operates vertically in multiple locations on an industry's value chain from extracting raw materials to maufacturing to retailing |
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Term
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Definition
| assuming a fuction previously provided by a SUPPLIER |
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Term
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Definition
| assuming a function previously provided by a DISTRIBUTOR |
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Term
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Definition
| firm internally makes 100% of its key supplies and completly controls its distributors |
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Term
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Definition
| internally produces less than half of its own requirements and buys the rest from outside suppliers |
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Term
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Definition
| company does not make any of its key supplies but purchases most of its requirements from outside suppliers |
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Term
horizontal growth
horizontal integration |
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Definition
| achieve by expanding its operations into other geographic locations by increasing the range of products and services offered to current mkt |
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Term
| concentric diversification |
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Definition
growth into related industry
search for synergies |
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Term
| conglomerate diversification |
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Definition
growth into UNRELATED industry
concern with financial considerations |
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Term
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Definition
Pause/procede with caution -
no-change strategy -
Profit strategies - |
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Term
| Pause/procede with caution - |
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Definition
| opportunity to rest before continuing a growht or retrenchment strategy |
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Term
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Definition
| choice to continue current operations and policies |
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Term
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Definition
| decision to do nother new in worsening situation but instead act as though the company problems are only temporary |
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Term
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Definition
Turnaround
Captive Company Strategy
Selling out
Bankruptcy
Liquidation |
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Term
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Definition
| emphasized the inprovemtn of operational efficiency and is probably most appropriate when a co problems are pervasive but not yet critical |
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Term
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Definition
| involves giving up independence in exchange for security |
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Term
| sell out/disinvestment strategy |
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Definition
| makes sense if mgmnt can still obtain a good price for its sharholders and the employees can keep jobs by selling the entire company to another firm |
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Term
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Definition
| giving up managemtn of the firm to the courts in return for some settlement of the corp's obligations |
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Term
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Definition
| termination of the firm, co is too weak to be sold, mgmt may choose to converty as many saleable assets to possible cash |
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Term
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Definition
| top managemtn views its product lines and business units as a seriews of investments from which it expects a profitable return |
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Term
BCG growth share matrix
question marks |
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Definition
| new products with the potential for success but they need a lot of cash for development |
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Term
BCG growth share matrix
stars |
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Definition
| market leaders that are typically at peak of their life cycle and are able to generate enough cash to maintain their high share of market and usuallly conribute to company's profit |
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Term
BCG growth share matrix
cash cows |
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Definition
| bring in far more money than is needed to maintain their market share |
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Term
BCG growth share matrix
dogs |
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Definition
| have low market share and do not have the potential to bring in as much cash |
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Term
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Definition
views a corp in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across business unites
strategic factors
performance improvement |
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Term
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Definition
| the approach a functional area takes to achieve corporate objectives and strategies by maximizing resource productivity |
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Term
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Definition
| deals with pricing, selling, and distributing a product |
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Term
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Definition
| spending large amount of money on trade promotion in order to gain or hold shelf space in retail outlets |
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Term
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Definition
| co spends money on consumer advertising designed to build brand awareness so that shoppers will ask for products |
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Term
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Definition
| offers the opportunity to look at the top of demand curve with a high price whie the product is novel and cometitors are few |
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Term
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Definition
| attempts to hasten market development and offers the pioneer the opportunity to use the experience vurve to gain market share with low price and then dominate industry |
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Term
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Definition
| practice in which prices vary frequently based upon demand, market segment, and product availabily |
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Term
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Definition
| examines the finaincial implications of corp strategic options and identifies the best financial course of action. |
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Term
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Definition
company is qcquired in a transaction financed largely by deby, such as an insurance company or investment banker
the aquired company pays for its own acquisition |
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Term
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Definition
investors shars are split in half for the same total amout of money
1 for 2 stock split (shares are now worth twice as much) |
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Term
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Definition
| deals wih product and process innovation and improvment |
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Term
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Definition
| firms use alliances and connections with corporate, government, labs, and consumers to develop new products and processes |
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Term
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Definition
determines how and where a product or service is to be nanufactured, the level of vertical integration in the process, the deployment of physical resources, and relationships with suppliers.
Job shop
Connected line batch flow
Flexible manufacturing systems
Dedicated transfer lines
Mass production
Continuous improvement system
Modular manufacturing |
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Term
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Definition
| deals with obtaining the raw materials, parts, and supplies needed to perform the operations function |
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Term
purchasing strategy
multiple sourcing |
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Definition
| the purchasing company orders a particular part from several vendors |
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Term
purchasing strategy
sole sourcing |
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Definition
| only one supplier for a particular part |
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Term
purchasing strategy
just in time |
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Definition
| concept of having the purchased parts arrive at the plant just when they are needed, rather than having inventories |
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Term
purchasing strategy
Parallel sourcing |
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Definition
| two suppliers are the sole suppliers of two different parts, but they are also backu suppliers for each other's products |
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Term
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Definition
deals with the flow of products into and out of the manufacturing process
centralizaton
outsourcing
internet |
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Term
HRM strategy
(human resource management) |
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Definition
| addresses the issue of whether a company should hire a large number or low skilled employees or receive low pay or higher skilled employees or receive relatively high pay and are cross trained to participate in self managing work teams |
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Term
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Definition
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Term
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Definition
| the approach a functional area takes to achieve corporate objectives and strategies by maximizing resource productivity |
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Term
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Definition
| deals with pricing, selling, and distributing a product |
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Term
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Definition
| spending large amount of money on trade promotion in order to gain or hold shelf space in retail outlets |
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Term
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Definition
| co spends money on consumer advertising designed to build brand awareness so that shoppers will ask for products |
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Term
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Definition
| offers the opportunity to look at the top of demand curve with a high price whie the product is novel and cometitors are few |
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Term
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Definition
| attempts to hasten market development and offers the pioneer the opportunity to use the experience vurve to gain market share with low price and then dominate industry |
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Term
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Definition
| practice in which prices vary frequently based upon demand, market segment, and product availabily |
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Term
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Definition
| examines the finaincial implications of corp strategic options and identifies the best financial course of action. |
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Term
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Definition
company is qcquired in a transaction financed largely by deby, such as an insurance company or investment banker
the aquired company pays for its own acquisition |
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Term
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Definition
investors shars are split in half for the same total amout of money
1 for 2 stock split (shares are now worth twice as much) |
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Term
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Definition
| deals wih product and process innovation and improvment |
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Term
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Definition
| firms use alliances and connections with corporate, government, labs, and consumers to develop new products and processes |
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Term
|
Definition
determines how and where a product or service is to be nanufactured, the level of vertical integration in the process, the deployment of physical resources, and relationships with suppliers.
Job shop
Connected line batch flow
Flexible manufacturing systems
Dedicated transfer lines
Mass production
Continuous improvement system
Modular manufacturing |
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Term
|
Definition
| deals with obtaining the raw materials, parts, and supplies needed to perform the operations function |
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Term
purchasing strategy
multiple sourcing |
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Definition
| the purchasing company orders a particular part from several vendors |
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Term
purchasing strategy
sole sourcing |
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Definition
| only one supplier for a particular part |
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Term
purchasing strategy
just in time |
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Definition
| concept of having the purchased parts arrive at the plant just when they are needed, rather than having inventories |
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Term
purchasing strategy
Parallel sourcing |
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Definition
| two suppliers are the sole suppliers of two different parts, but they are also backu suppliers for each other's products |
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Term
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Definition
deals with the flow of products into and out of the manufacturing process
centralizaton
outsourcing
internet |
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Term
HRM strategy
(human resource management) |
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Definition
| addresses the issue of whether a company should hire a large number or low skilled employees or receive low pay or higher skilled employees or receive relatively high pay and are cross trained to participate in self managing work teams |
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Term
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Definition
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Term
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Definition
3 Follow the leader
Hit another home run
Arms race
Do everything
Losing hand |
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Term
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Definition
| plan to bring stakeholders into agreement with a corporations actions |
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Term
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Definition
| evaluation of the alternative strategies and selection of the best alternative |
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Term
techniques to help managers avoid consensus
devil's advocate |
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Definition
| they are supposed to identify potential pitfalls and problems with proposed alternative strategy in a formal presentation |
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Term
techniques to help managers avoid consensus
dialectical inquiry |
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Definition
| requires that two propasals using different assumptions be generated for each alternative strategy under consideration |
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Term
| evaluation of strategic alternatives |
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Definition
Mutual exclusivity - doing any one alternative would preclude doing another
Success - it must be feasble and have a good probability of succes
Completeness - it must take into account all the key strategic issues
Internal consistency - it must make sense on its own strategic decision for the entire firm and not contradict key goals, policies, and strategies currently being pursued by the firm or its units |
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Term
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Definition
the sum total of the activities and choices required for the execution of a strategic plan.
process by which objectives and strategies and policies are put into action through the development of programs, budgets and procedures |
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Term
| key implementation questions |
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Definition
Who carries out strategic plan?
What needs doing for alignment w/ strategy?
How is work coordinated? |
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Term
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Definition
make strategy action oriented
Matrix of change--
Feasibility
Sequence of execution
Location
Pace & nature of change
Stakeholder evaluations |
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Term
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Definition
Economies of scale or scope
Pooled negotiating power
New business creation |
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Term
| Stages of Corporate Development |
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Definition
Stage I: Simple structure- entrepreneur founds the company to promot and idea product or service
Stage II: Functional structure - entrepreneur is replaced by a team of managers who have functional specializations
Stage III: Divisional structure - corporation's managing diversers product lines in numerous industries. it decentralized the decision making authority
Stage IV: Beyond SBU’s - |
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Term
| blocks to changing stages |
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Definition
Loyalty to comrades
Task oriented
Single-mindedness
Working in isolation |
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Term
| organizational life cycle |
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Definition
| describes how organizations grow, develop, and eventually decline |
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Term
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Definition
| developed to combine the stability of the functional structure with the flexibily of the product form. useful when the external environment is very complex and changeable. |
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Term
| network structure (virtual organization) |
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Definition
| composed of a series of project groups or collaborations linked by constantly changing nonheirarchial cobweb like electronic networks |
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Term
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Definition
| composed of cells (mgt teams) which can operate alone but which can interact with other cells to produce a more potent and competent business mechanism |
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Term
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Definition
| the radical redesign of business processes to achieve major gains in cost, service, or time. |
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Term
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Definition
analytical method for achieving near perfect results on a production line
Define - a process where results are poorer than average
Measure - the process to determine exact current performance
Analyze - the info to pinpoint where things are going wrong
Improve - the process and eliminate error
Establish - controls to prevent future defects from occuring |
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Term
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Definition
the study of individual tasks in an attempt to make them more relevant to the company and to the employees
Job enlargement
Job rotation
Job enrichment |
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Term
multinational corporation
(MNC) |
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Definition
| a highly developed international company with deep involvement throughout the world, plus a worldwide perspective in its management and decision making |
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Term
| stages of international development |
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Definition
Domestic company
Domestic company w/export division
Domestic company w/int’l division
MNC w/multidomestic emphasis
MNC w/global emphasis |
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Term
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Definition
| enables the company to introduce and manage a similar line of products around the world. enables the corp to centralize decision making along product lines |
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Term
| geographic-area structure |
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Definition
allows the company to tailor products to regional differences and to achieve regional coordination.
decentralizing area structure has become ineffieient |
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Term
| matching manager to strategy |
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Definition
Executive type
Dynamic industry expert
Analytical portfolio manager
Cautions profit planner
Turnaround specialist
Professional liquidator |
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Term
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Definition
process of replacing a key top manager
85% of ceos selected are insiders |
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Term
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Definition
Eliminate unnecessary work
Contract out work for cost savings
Plan for long-run efficiencies
Communicate reasons for action
Invest in remaining employees
Develop value-added jobs |
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Term
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Definition
| equal merger of both cultures into a new corporate culture |
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Term
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Definition
| aquiring firm's culture kept intact, but subservient to that of acquiring firms culture |
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Term
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Definition
| conflicting cultures kept intact, but ket separate in diff units |
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Term
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Definition
| forced replacement of conflicting acquired firms culture with that of the acquiring firms culture |
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Term
| total quality Management (TQM) |
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Definition
Less variable quality
Less variable response in processes
Greater flexibility
Lower cost |
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Term
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Definition
Intense focus on customer satisfaction
Internal as well as external customers
Accurate measurement
continuous improvement
Trust and teamwork |
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Term
| international considerations in leading |
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Definition
Power distance (PD)
Uncertainty avoidance (UA)
Individualism-collectivism (I-C)
Masculinity-femininity (M-F)
Long-term orientation (LT) |
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