Shared Flashcard Set

Details

MGT 4800
Strategic Planning Midterm Chps 1-6 + Case Study
49
Management
Undergraduate 4
02/21/2011

Additional Management Flashcards

 


 

Cards

Term
Strategic Management- 
Definition

The analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages

Term
Competitive Advantage- 
Definition

A firm’s resources and capabilities that enable it to overcome the competitive forces in the its industry. 

Term
Strategic Objectives- 
Definition
A set of organizational goals that are used to operationalize the mission statement and that are specific and cover a well-defined time frame. 
Term
Triple Bottom Line- 
Definition

Assessment of a firm’s financial, social, and environmental performance

Term
Vision- 
Definition

Organizational Goals that evoke powerful and compelling mental images

Term
Mission Statement-
Definition

 A set of organizational goals that include both the purpose of the organization, its scope of operations, and the basis of its competitive advantage

 

Term
SWOT Analysis- 
Definition

Framework for analyzing a company’s internal and external environment and that stands for strengths, weaknesses, opportunities and threats. 

Term
Environmental Scanning-
Definition

 Surveillance of a firm’s external environment to predict environmental changes and detect  changes already under way. 

Term
Globalization- 
Definition

 

The dual trends of (a.) Increasing international exchange of goods, money, information, people, and ideas and (b.) increasing similarity among countries of laws, rules, norms, values, and income levels

Term
Porters 5 Forces-
Definition

 

1.)   Competitive Rivalry within an industry:

2.)   Bargaining power of suppliers

3.)   Bargaining power of customers

4.)   Threat of new entrants

Threat of substitute products

Term
Complements-
Definition

 Products or services that have an impact on the value of a firm’s products or services

Term
Strategic Groups- 
Definition

Clusters of firms that share similar strategies 

Term
Value Chain Analysis-
Definition

 A strategic analysis of an organization that uses value-creating activities

Term
Resource based view of the firm-
Definition

 Internal Analysis, External Analysis

Perspective that firms’ competitive advantages are due to their endowment of strategic resources that are valuable, rare, costly to imitate and costly to substitute. 

Term
Balanced Scorecard- 
Definition

A method of evaluating a firm’s performance using performance measures from the customer’, internal, innovation and learning, and financial perspectives. 

Term
Four Key Perspectives-
Definition


Customer Perspective

Internal Business Perspective

Innovation and Learning Perspective

Financial Perspective

Term
Knowledge Economy- 
Definition

An economy where wealth is created through the effective management of knowledge workers instead of by the efficient control of physical and financial assets. 

Term
3 Generic Strategies-
Definition

Low Cost Position

Focus Strategy

Differentiation

 

Term
Combination Strategies- 
Definition

Firm’s integrations of various strategies to provide multiple types of value to customers

Term
Mass Customization- 
Definition

A firm’s ability to manufacture unique products in small quantities at low cost

Term
Stages of Industry Life Cycle-
Definition

 Intro, Growth, Maturity, Decline

Term

Types of competitive advantage and sustainability:

Definition

Overall Cost Leadership,

Differentiation

Focus Strategy

Term
Overall cost leadership- 
Definition

A firm’s generic strategy based on appeal to the industry wide market using a competitive advantage based on low cost. 

Term
Differentiation- 
Definition

A firm’s generic strategy based on creating differences in the firm’s product or service offering by creating something that is perceived industrywide as unique and valued by customers

Term
Focus strategy-
Definition

 A firm’s generic strategy based on appeal to a narrow market segment within an industry 

Term
Combination Strategies-
Definition

 A firm’s integrations of various strategies to provide multiple types of value to customers

Term
Mass Customization-
Definition

 

 A firm’s ability to manufacture unique products in small quantities at low cost. 

Term
Industry Life Cycle- 
Definition

Stages of introduction, growth, maturity, and decline that typically occur over the life of an industry

Term
Turnaround Strategy-
Definition

 Reverses a firm’s decline in performance and retains it to growth and profitability

Term
Related Diversification- 
Definition

A firm entering a different business in which it can benefit from leveraging core competencies, sharing activities, or building market power. 

 

Term

Economies of Scope-

Definition
 Cost savings from leveraging or sharing related activities among businesses in a corporation
Term
Core Competencies- 
Definition

 

A firm’s strategic resources that reflect the collective learning in the organization

Term
Sharing Activities-
Definition

 Having activities of two or more businesses value chains done by one of the businesses

Term
Market Power- 
Definition

firm’s abilities to profit through restricting or controlling supply to a market or coordinating with other firms to reduce investment

Term
Pooled Negotiating Power-
Definition

 

 The improvement in bargaining position relative to supplies and customers

Term
Vertical Integration- 
Definition

An expansion or extension of the firm integrating preceding or successive production processes

Term
Transaction Cost Perspective- 
Definition

A perspective that the choice of a transaction’s governance structure is influenced by transaction costs associated with each choice

Term
Unrelated Diversification: 
Definition

A firm entering a different business that has little horizontal interaction with other businesses of a firm

Term
Parenting Advantage- 
Definition

Positive contributions of the corporate office to a new business as a result of expertise and support provided and not as a result of substantial changes in assets, capital structure, or management. 

Term
Restructuring- 
Definition

another means by which the corporate office can add value to a business

            Asset Restructuring

            Capital Restructuring

            Management Restructuring

Term
Portfolio Management-
Definition

 

 a method of

(a.) Assessing the competitive position of a portfolio of businesses within a corporation

(b.) Suggesting strategic alternatives for each business

(c.) To identifying the allocation of resources across the businesses 

Term
Means to achieve diversification:
Definition

Mergers and Acquisitions

Divestment- exit of a business from a firm’s portfolio

Term
Strategic Alliance- 
Definition

A cooperative relationship between two or more firms

Term
Joint Ventures-
Definition

 New entities formed within a strategic alliance in which two or more firms, the parents, contribute equity to form the new legal entity

Term
Managerial Motives-
Definition

 Managers acting in their own self-interest rather than in maximizing long-term shareholder value.

Term
Greenmail- 
Definition

A payment by a firm to a hostile party for the firm’s stock at a premium, made when the firm’s management feels that the hostile party is about to make a tender offer

Term
Golden Parachute- 
Definition

a prearranged contract with managers specifying that, in the event of a hostile takeover, the target firm’s managers will be paid a significant severance package

Term
Poison Pill- 
Definition

Used by a company to give shareholders certain rights in the event of takeover by another firm

Supporting users have an ad free experience!