Ch. 4 - intro to strategy Flashcards Preview

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Flashcards in Ch. 4 - intro to strategy Deck (33):
1

strategy

pursuing a set of unique activites that provide value to customers, making trade offs about which business to pursue, products to produce, which customers to serve, align resources to achieve organizational objectives- game plan

2

competitive advtge

creating more economic value than competitors by engaging in strategy that's diff / impossible for others to duplicate

3

conglomeratin

business grew through unrelated diversification, by acquiring companies of / in diff industries

4

strategy begins with

analysis of firm interval and external evniornemnt

5

core competencies

network of activites that helps estb firm's competitive advtge

6

vision

how firm wants to bring value to customers and satisfy its various stakeholders - concept of what firm watns to achieve

7

mission

definition of what it stands for and what its purpose is

8

mission statement

defines firm's reason for existence - activites firm performs/ markets served / distinguish from competition

9

objectivies

provides series of quanitifable milestone/benchamark by which firm can track progress

10

strategy forumulation

process of anlayzing a firm's external and internal env as well as firm's vision and mission

11

tactics

actions firm take to enact its strategy

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strategy formulation

reassesing tactics, objectives, strategy

13

three elemnts of strategy

comepttiive strategy, manager decides, managers create

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competitive strategy

primarily about being different

15

manager decides

what not to do - trade offs

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managers create

solid fit among act so product being offered can be easily copied by competitio

17

strategic position

place in an industry that firm ocupies relative to its competitiors by way of products/services it offers and method in which it delivers them - cost leadership, focus, different

18

focus strategy

narrows scope to focus on niche market within an industry

19

two strategies where organization creates and sustains competitive avantage in industry

business level strategy, corporate level strategy

20

business level strategy

how company will compete in given business and position itself among its competitiors; in a sepecific industry - trhee approaches - low cost, differentiation, fucs

21

corporate level strategy

decisions sualy made an increase level than business level, compnies with multiple businesses

22

going global stratgeis

multination strategy, global stratgey, internationl strategey transational strategy

23

multinationla strategy

important to be responsive and sensitive to local needs/ tastes, involves significant customizing of fimr's products

24

global stratgey

develop overall scale economies and global efficiency instead of catering to local taste- goal is cost mgmt, attempts to provide standardized product to all markets, takes adv of scale economies in production

25

international strategy

combines elements of multinational and global strategies - focus on foregin subsidies to produce and distribute goods, cross between global and multinal strategies

26

transnational stratgey

focus on efficiency, local response and organiz learning- key is to balance strategy among three factors - efficiency, local response and organizional learning ability to share and diffuse info across entire firm

27

market entry strategies

exporting, liscensincg, francihising, joint venture, alliances

28

exporting

shipping firm product from domestic home base t global markets - great global expansion, loss of control

29

licensing

contract, licensor (selling firm) allows its technology, patents, trademarks etc to be used for fee by lisensee (buying firm) - allows many firms to test foregin markets, loss of propietary adv

30

franchising

organizaiton from where franchiser of service allows franchisee to use name in return for roylaty while conform to required std of quality of service - hotels, fast food chains, low cost way to enter market, loss of control

31

joint venture

structure where two firms come together to form new company in market - has varied results

32

alliances

partners come together by contract, engage jointly activites in market firm share resource with counterparty for benefit of both - low cost, takes time and effort to establish

33

whollly owned subsidary

firm sets up fully operational, independednt entity in foregin country to conduct business in that market - pro tight control, need creativity flexibility, con expensive risk