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Flashcards in Chapter 2 Deck (13)
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1

mission

statements tell an organisation where it is going

2

strategy

tells the organisation how to get there
- action plan to achieve mission

3

factors affecting mission

* customers
* environment
* philosophy and values
* profitability and growth
* public image

4

strategies for competitive advantage

* differentiation - better or different (uniqueness)
* low cost leadership - cheaper (doesn’t necessarily mean low quality)
* response - rapid response (reliability, speed)

5

resources view

potential strategy is compatible with resources

6

value-chain analysis

identify activities that represent strengths, or potential strengths, and may be opportunities for developing competitive advantage

7

five forces model

analysing the five forces
1. immediate rivals
2. potential entrants
3. customers
4. suppliers
5. substitue products

8

strategy development process

1. Analyse the environment
2. Determine the corporate mission
3. form a strategy

9

product life cycle

introduction-growth-maturity-decline

10

Introduction

* product design and development critical
* frequent product and process design changes
* short production runs
* hight production costs
* limited models
* attention to quality

11

Growth



* forecasting critical
* product and process reliability
* competitive product improvements and options
* increase capacity
* shift toward product focus
* enhance distribution

12

Maturity



* standardisation
* less rapid product changes - more minor changes
* optimum capacity
* increasing stability of process
* long production runs
* product improvement and cost cutting

13

Decline



* little product differentiation
* cost minimisation
* overcapacity in the industry
* eliminate items not returning good margin
* reduce capacity