Ch 7 Flashcards
(41 cards)
A comprehensive plan for accomplishing an organization’s goals
Strategy
Comprehensive and ongoing management process aimed at formulating and implementing effective strategies. A way of approaching business opportunities and challenges.
Strategic Management
Strategy that promotes a superior alignment between the organization and its environment and the achievement of strategic goals
Effective Strategies
Components of Strategy
1) Distinctive Competence
2) Scope
3) Resources Deployment
Organizational strengths possessed by only a small number of competing firms
Distinctive Competence
When applied to strategy, it specifies the range of markets in which an organization will compete.
Scope
How an organization distributes its resources across the areas in which it competes
Resources Deployment
Levels of Strategy
1) Business-level Strategy
2) Corporate-level Strategy
How an organization conducts business in a particular industry or market
Business-level Strategy
How an organization manages it operations simultaneously across several industries and markets
Corporate-level Stragegy
Set of processes involved in creating or determining an organization’s strategies; focuses on the content.
Strategy Formulation
Ways strategies are executed within an organization; focuses on the processes.
Strategy Implementation
Supports a specific goal. Rational, systematic, and planned.
Deliberate Strategy
Develops overtime in the absence of a mission and goal, or despite a mission and goals.
Emergent Strategy
SWOT
Strengths, Weaknesses, Opportunities, and Threats
Best strategies to accomplish a mission by:
1) Exploiting opportunities and strengths while,
2) Neutralizing threats, and
3) Avoiding weaknesses
Skills enabling an organization to conceive of and implement its strategies
Organizational Strengths
Area, if exploited, may generate higher performance
Organizational Opportunity
Area that increases the difficulty of performing at a high level
Organizational Threat
Porter’s Generic Strategies
1) Differentiation Strategy
2) Overall Cost Leadership Strategy
3) Focus Strategy
Seeks to distinguish itself from competitors through the quality of its products or services
Differentiation Strategy
Attempts to gain a competitive advantage by reducing its cost below the cost of other firms
Overall Cost Leadership Strategy
Concentrates on a specific regional market, product line, or group of buyers
Focus Strategy
Miles and Snow Typology
- Prospector Strategy
- Defender Strategy
- Analyzer Strategy
- Decline Strategy
