Chapter 6 Flashcards Preview

Management > Chapter 6 > Flashcards

Flashcards in Chapter 6 Deck (14):
1

Porters 4 competitive strategies

Cost leadership- wide
Differentiation- wide
Cost focused- narrow
Focused differentiation- narrow

2

Cost leadership strategy

Wide- keeps costs lower than competitors

3

Differentiation

Wide- offers unique products with superior value

4

Cost-focus strategy

Keep prices low and aim for a narrow market

5

Focused-differentiation

narrow, unique products

6

BCG Matrix

A means of evaluating strategic business units on the basis of
Their business growth rates and
Their share of the market

7

Stars

High growth, high market share

8

Question marks

Risky new ventures, some become stars, some become dogs

9

Dogs

Low growth, low market share

10

Cash cows

Slow growth but high market share, start as question marks

11

Common grandStrategies

Growth Strategy
Stability
Defensive

12

Porters 5 competitive forces

1 threat on new entrants
2 bargaining power of suppliers
3 bargaining power of buyers
4 threat of substitute products or services
5 rivalry among competitors

13

Benchmarking

A process by which a company compares its performance with that of a high performing organization

14

Trend analysis

Hypothetical extension of a past series of events into the future