Term
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Definition
Less than a paragraph about the company's purpose
-revenue goals
-profit goals
-profit margin goals (% of every dollar left over for profit) |
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Term
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Definition
| where the company wants to be in the future: provides firm with focus |
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Term
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Definition
| what the company needs to reach the vision |
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Term
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Definition
| how a firm will achieve its goals |
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Term
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Definition
| Uses environmental analysis and industry analysis |
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Term
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Definition
• Technological
• Economic
• International
• Political/Legal
• Social/Cultural |
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Term
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Definition
• Power of customers
• Barriers
o Startup costs
o Political/legal
• Substitutive
o Margarine for Butter
• Power of suppliers
• Internally you want to compare to other firms. You want to compete and compare against firms of equal size to your company. |
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Term
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Definition
-SWOT
-Core Competencies
-Resources |
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Term
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Definition
How mundane jobs are getting done within a firm.
o Hiring/firing
o Management skills
o Staying on task
o Etc |
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Term
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Definition
| determining how well the firm is progressing |
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Term
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Definition
| (Wal-Mart) what can they do to keep prices low? |
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Term
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Definition
| (Best Buy) focus efforts into narrower product group |
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Term
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Definition
how can the firm be different? creating unique products in order to raise prices
(Apple) |
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Term
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Definition
focus on very narrow segment of market with a particular product or product line
(electric bottle opener - for elderly) |
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Term
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Definition
| trying to enter into a new portion of the market |
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Term
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Definition
| improving upon existing products or creating new products |
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Term
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Definition
| trying to create a new market with a new product |
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Term
| market development/product development |
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Definition
| entering a new market with an improved or new product |
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Term
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Definition
| 2 companies become 1 but control is shared |
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Term
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Definition
| one company takes over the other and wants to dictate all terms. Most don't succeed (divorce rate is higher than people) |
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Term
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Definition
| two or more companies work together on a single or continuing product (ex: epson makes parts for IBM) |
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Term
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Definition
o Avoid direct competition
-Direct competition leads to competition based on price
-Leads to copy cat products
o Judo Strategy
-Compete with firms of similar size
-Little fish avoid the big fish
o Product Differentiation
o Creating new markets
-Jumping into a market that a firm previously had not been involved in
-Ex: have share of elderly market for toothbrushes. There is an “untouched” part of market that has dentures and don’t need a toothbrush. Firm can develop a denture brush. |
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Term
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Definition
not directly related to a firm's product
(Human Resources) |
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Term
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Definition
| budgeting and budget analysis |
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Term
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Definition
Want to be able to keep good people
Benefits
Incentive programs |
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Term
| properties of a good goal |
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Definition
Achievable
Time frame (Forces people to focus)
Something that raises the bar (but not too much)
Measurable
Specific |
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Term
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Definition
| MissionVisionStrategic GoalsUnit GoalsTeam GoalsIndividual Goals |
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Term
| ways for a firm to stay focused |
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Definition
-prevention (small and major problems)
-awareness
-evaluation (makes sense of causal factors found in awareness phase)
-feasible solution (problem solving)
-selection (decide which solution to use) |
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Term
| what makes key people key |
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Definition
-have credibility (pilot programs and training programs
-have power (expertise and resources) |
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Term
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Definition
o Used to motivate
o Very specific
Ex: Ross’s suit. Needed 20 new clients totaling $100,000,000.
o Reward can vary
o Is very tangible reward |
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Term
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Definition
-%change
-%sales
-Ratio analysis |
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Term
| three major problems firms face |
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Definition
new competitors
new products (ipod to walkman)
complacency |
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Term
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Definition
| 80% of revenues come from 20% of our top customers... 20% of problems from 80% of our customers |
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