Term
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Definition
| vision, mission, corporate strategy, SBU strategy, business strategy, functional planning |
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Term
| Strategic Goal for Businesses |
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Definition
| To earn an above average financial return over the long term. |
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Term
| Porter’s Five Forces Model |
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Definition
New Entrants,
Suppliers,
Customers,
Substitute Products,
Industry Competition, |
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Term
| Low-cost-leadership (business cost leadership) |
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Definition
| seeks to operate at lower costs than competitors |
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Term
| Differentiation (business cost leadership) |
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Definition
| offers products and services that are uniquely different from the competition |
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Term
| Focused cost leadership (business cost leadership) |
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Definition
| uses cost leadership and target needs of a special market |
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Term
| Focused differentiation (business cost leadership) |
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Definition
| offers a unique product to a special market segment |
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Term
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Definition
| bring in new management to make possible changes |
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Term
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Definition
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Term
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Definition
| Sell off a part of the firm to focus on core businesses |
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Term
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Definition
| Allow a part of the firm to become a separate business |
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Term
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Definition
| Let business slowly run down |
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Term
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Definition
| Selling off the assets piecemeal |
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Term
| Building blocks of organizational design |
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Definition
| delegation, centralization, span of control |
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Term
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Definition
| Aligns structure to best accomplish mission and respond to external environment |
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Term
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Definition
1. Assign responsibility – explain task and expectations to others
2. Grant authority – allow others to act as needed to complete task
3. Create accountability – require others to report back, complete task |
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Term
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Definition
| top management keeps strong decision making control |
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Term
|
Definition
| decision making is distributed throughout the organization |
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Term
| factors that influence span of control |
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Definition
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Term
|
Definition
| groups together people using similar skills |
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Term
|
Definition
| Grouping people and jobs into a work unit |
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Term
| Potential Advantages: Functional Structure |
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Definition
–Economies of scale make efficient use of personnel
–Creates strong functional expertise
–Easier to train since all are in the same department
–Career paths are available within each function. |
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Term
| Potential Problems: Functional Structure |
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Definition
–Functional Chimneys or Silos
–Communication and performance decrease across functions
–Difficult to assign costs
–Lack of general managers |
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Term
|
Definition
| group people by products, customers, or location |
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Term
| Potential Advantages: Divisional Structure |
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Definition
•Expertise focused on special products, customers, regions
•Better coordination across functions within divisions
•Better accountability for product or service delivery
•Easier to grow or shrink in size as conditions change
•Grows general managers |
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Term
| Potential Disadvantages: Divisional Structure |
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Definition
•Fight over resources
•Failure to make distinct may create confusion in the marketplace |
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Term
|
Definition
| combine the functional and divisional structures |
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Term
| Potential Advantages: Matrix Structure |
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Definition
•Performance accountability rests with program, product, or project managers.
•Teams enable better communication and cooperation across functions.
•Teams make more decisions and solve more problems at their levels.
•Ease of adding and deleting projects |
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Term
| Potential Disadvantages: Matrix Structure |
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Definition
•Creates the ‘two-bosses’ problem
•With too many projects, it can get messy |
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Term
|
Definition
| extensively use strategic alliances and outsourcing |
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Term
|
Definition
Network that depends on information technology to link alliances
and essential services |
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Term
|
Definition
| Cooperation with other firms to pursue mutual interests |
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Term
|
Definition
| purchase services for other organizations |
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Term
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Definition
| preferred supplier/customer relationships that promote smooth transactions |
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Term
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Definition
| the tendency for an organization to adapt their structure to fit their situation (e.g. Procter & Gamble) |
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Term
| Reasons for going international |
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Definition
| profits, customers, supplies, capital, labor |
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Term
|
Definition
Global Sourcing – materials, components or services are purchased worldwide
Importing – buying foreign-made products and selling them in domestic markets
Licensing – foreign firm pays for rights to make or sell another company’s products
Exporting – selling locally made products in foreign markets
Franchising – foreign firm buys rights to another’s name and operating method in its home country |
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Term
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Definition
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Term
|
Definition
| tariffs, subsidies, and other tactics that give advantages to domestic producers |
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Term
| World Trade Organization (WTO) |
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Definition
| Global institution to promote free trade and open markets around the world |
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Term
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Definition
| global corporations known as Multinational corporations |
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Term
| Foreign Corrupt Practices Act |
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Definition
| U.S. legal standards apply to companies when operating in foreign countries |
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Term
| Foreign Corrupt Practices Act – what it prevents |
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Definition
| Bribes, gifts to foreign officials in return for business favors |
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Term
|
Definition
| risk of loss because of political instability in host country |
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Term
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Definition
| attempt to predict disruptive events |
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Term
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Definition
| A perception of time as a straight line broken into standard units |
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Term
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Definition
| A perception of time as flexible, elastic, and multidimensional |
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Term
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Definition
| The degree to which a society accepts unequal distribution of power |
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Term
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Definition
| The degree to which a society tolerates risk and uncertainty |
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Term
| Individualism-collectivism |
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Definition
| The degree to which a society emphasizes individuals and their self-interests |
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Term
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Definition
| The degree to which a society values assertiveness and materialism versus relationships, feelings and quality of life |
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Term
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Definition
| The degree to which a society values short term or long term goals |
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Term
|
Definition
| confusion, small victories, honeymoon, irritation and anger, reality |
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Term
| Specific techniques for training for international assignments: |
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Definition
| documentary, culture assimilation, language instruction, sensitivity training, field experiences |
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