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MGT BUSINESS AND CORPORATE STRATEGY > MGT Part 2 > Flashcards

MGT Part 2 Flashcards

1
Q

The firm’s overall orientation toward growth, stability, or retrenchment

A

directional strategy

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2
Q

The industries or markets in which the firm competes through its products and business units

A

portfolio analysis

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3
Q

The manner in which management coordinates activities and transfers resources and cultivates capabilities among product lines and business units

A

parenting strategy

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4
Q

primarily about the choice of direction for a firm as a whole and the management of its business or product portfolio

A

Corporate strategy

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5
Q

expand the company’s activities.

A

Growth strategies

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5
Q

make no change to the company’s current activities.

A

Stability strategies

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5
Q

reduce the company’s level of activities.

A

Retrenchment strategies

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5
Q

A transaction involving two or more corporations in which stock is exchanged but in which only one corporation survives.

A

merger

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5
Q

The purchase of a company that is completely absorbed as an operating subsidiary or division of the acquiring corporation.

A

Acquisition

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6
Q

unused resources

A

organization slack

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7
Q

In corporate management refers to a deliberate approach taken by companies to achieve growth in various aspects, such as sales, assets, profits, or a combination of these

A

Growth strategy

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8
Q

The company’s current product lines have real growth potential, and the concentration of resources on those product lines makes sense as a strategy for growth

A

Concentration

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9
Q

also known as vertical integration, internally by expanding the current
operations or externally through acquisitions.

A

Vertical growth

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9
Q

the degree to which a firm operates vertically in multiple locations on an industry’s value chain from extracting raw materials to manufacturing to retailing.

A

Vertical integration

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9
Q

going backward on an industry’s value chain and previously provided by the Suppliers

A

backward integration

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9
Q

going forward on an industry’s value chain and previously provided by the Distributors

A

forward integration

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10
Q

A logical strategy for a corporation or business unit with a strong competitive position in a highly attractive industry

A

Vertical growth

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11
Q

Aims to increase a company’s market share and competitiveness by broadening its reach or offerings within its current market or industry. It can be achieved through internal expansion (such as opening new stores) or external means like acquisitions and partnerships with other companies in the same industry.

A

Horizontal growth

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12
Q

a firm internally makes 100% of its key supplies and completely controls its distributors.

A

Full Integration

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13
Q

a company does not make any of its key supplies but purchases most of its requirements from outside suppliers that are under its partial control

A

Quasi Integration

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14
Q

a firm internally produces less than half of its own requirements and buys the rest from outside suppliers

A

Taper Integration

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15
Q

agreements between two firms to provide agreed-upon goods and services to each other for a specified period of time.

A

Long term Contract

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16
Q

THIS INVOLVES OPENING BRANCHES OR FACILITIES IN DIFFERENT REGIONS OR COUNTRIES TO REACH A BROADER CUSTOMER BASE.

A

EXPANDING INTO NEW GEOGRAPHIC LOCATIONS

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17
Q

THIS ENTAILS BROADENING THE RANGE OF PRODUCTS AND SERVICES PROVIDED TO EXISTING MARKETS

A

INCREASING PRODUCT AND SERVICE OFFERINGS

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18
Q

Expanding its operations into
other geographic locations and/or by increasing the range of products and services offered to
current markets.

A

Horizontal growth

18
Q

The degree to which a firm operates in multiple geographic locations at the same
point on an industry’s value chain horizontal growth

A

horizontal integration

18
Q

A good way to minimize risk and experiment with a specific product, is shipping goods produced in the company’s home country to other countries for marketing.

A

Exporting

19
Q

The licensing firm grants rights to another firm in the host country to produce and/or sell a product.

A

Licensing

20
Q

The franchiser grants rights to another company to open a retail store using the franchiser’s name and operating system.

A

Franchising

21
Q

Forming between a foreign corporation and a domestic company is the most popular strategy used to enter a new country.

A

Joint Ventures

22
Q

purchasing another company already operating in that area.

A

Acquisitions

22
Q

Build its own manufacturing plant and distribution system.

A

green-field development

22
Q

process of combining the higher labor skills and technology available in developed countries with the lower-cost labor available in developing countries. Also called as outsourcing.

A

Production sharing

22
Q

Typically contracts for the construction of
operating facilities in exchange for a fee. The facilities are transferred to the host country or firm when they are complete.

A

Turnkey operations

23
Q

A variation of the
turnkey operation. Instead of turning the facility (usually a power plant or toll road) over to the host country when completed,

A

BOT (Build, Operate, Transfer) concept

24
Q

offer a means through which a corporation can use some of its personnel to assist a firm in a host country for a specified fee and period of time.

A

Management contracts

25
Q

Expansion or growth and development by adding new products to its existing product lines to attract new customers

A

Concentric (Related) Diversification

25
Q

Adding totally unrelated products or markets for its existing business

A

Conglomerate (Unrelated) Diversification

26
Q

a related industry may be a very appropriate corporate strategy when a firm has a strong competitive position but industry attractiveness is low.

A

concentric diversification

26
Q

When management realizes that the current industry is unattractive and that the firm lacks outstanding abilities or skills that it could easily transfer to related products or services in other industries,

A

Conglomerate (Unrelated) Diversification.

27
Q

A corporation may choose stability over growth by continuing its current activities without any significant change in direction.

A

STABILITY STRATEGIES

28
Q

In effect, a timeout—an opportunity to rest before continuing a growth or retrenchment strategy. It is a very deliberate attempt to make only incremental improvements until a particular environmental situation changes.

A

Pause/proceed-with-caution strategy

29
Q

Decision to do nothing new—a choice to continue current operations and policies for the foreseeable future. Rarely articulated as a definite strategy, a no-change strategy’s success depends on a lack of significant change in a corporation’s situation.

A

No-change strategy

30
Q

A decision to do nothing new in a worsening situation but instead to act asthough the company’s problems are only temporary. The profit strategy is an attempt to artificially support profits when a company’s sales are declining by reducing investment and short-term discretionary expenditures.

A

Profit strategy

30
Q

when it has a weak competitive position in some or all of its product lines resulting in poor performance—sales are down and profits are becoming losses.

A

retrenchment strategies

31
Q

the initial effort to quickly “stop the bleeding” with a general, across-the-board cutback in size and costs.

A

CONTRACTION

31
Q

emphasizes the improvement of operational efficiency and is probably
most appropriate when a corporation’s problems are pervasive but not yet critical.

A

TURNAROUND STRATEGY

32
Q

Involves giving up independence in exchange for security. A com-
pany with a weak competitive position may not be able to engage in a full-blown turnaround strategy.

A

captive company strategy

32
Q

makes sense if management can still obtain a good price for its shareholders and the employees can keep their jobs by selling the entire company to another firm.

A

sell-out strategy

32
Q

implements a program to stabilize the now-leaner corporation.

A

CONSOLIDATION

33
Q

Often used after a corporation acquires a multi-unit corporation in order to
shed the units that do not fit with the corporation’s new strategy.

A

Divestment

34
Q

sell off a division with low
growth potential

A

Divestment

35
Q

involves giving up management of the firm to the courts in return for some settlement of the corporation’s obligations.

A

BANKRUPTCY

36
Q

(sometimes called “problem children” or “wildcats”) are new products with the potential for success, but they need a lot of cash for development.

A

Question marks

37
Q

market leaders that are typically at the peak of their product life cycle and are
able to generate enough cash to maintain their high share of the market and usually contribute to the company’s profits.

A

Stars

38
Q

Typically bring in far more money than is needed to maintain their market
share.

A

Cash cows

38
Q

Have a low market share and do not have the potential (because they are in an unattractive industry) to bring in much cash.

A

Dogs

39
Q

views a corporation in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across business units.

A

Corporate parenting

40
Q

generates corporate strategy by focusing on the core competencies of the parent corporation and on the value created from the relationship between the parent and its businesses.

A

Corporate Parenting

41
Q

corporate strategy that cuts across business unit boundaries to build
synergy across business units and to improve the competitive position of one or more business
units

A

horizontal strategy

42
Q

large multi-business corporations compete against other large multi-business firms in a number of markets. These multipoint competitors are firms
that compete with each other not only in one business unit but also in a number of business units.

A

multipoint competition

MGT BUSINESS AND CORPORATE STRATEGY (3 decks)

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