Chapter 7

Question 1

operating objectives

Answer 1

specific results that organizations try to accomplish

Question 2

competitive advantage

Answer 2

an ability to outperform rivals

Question 3

crowdsourcing

Answer 3

strategic use of the internet to engage customers and potential customers in providing opinions and suggestions on products and their designs

Question 4

vertical intergration

Answer 4

growth that occurs by acquiring suppliers or distributors

Question 5

divestiture

Answer 5

selling off parts of the organization to refocus attention on core business areas

Question 6

business strategy

Answer 6

identifies how a division or strategic business unit will compete in its product or service domain

Question 7

functional strategy

Answer 7

a mgt strategy that guides activities within one specific area of operations

Question 8

e-business strategy

Answer 8

a business approach that strategically uses the internet to gain competitive advantage

Question 9

focused differentiation strategy

Answer 9

a bus approach that offers a unique product to a special market segment

Question 10

co-opetition

Answer 10

the strategy of working w rivals on projects of mutual benefit

Question 11

social media strategy

Answer 11

the use of social media to better engage w an organization’s customers, clients and external audiences in general

Question 12

strategic mgt

Answer 12

the process of formulating and implementing strategies

Question 13

concentration

Answer 13

expansion within an existing business area

Question 14

growth strategy

Answer 14

a business approach that involves expansion og the organization’s current operations

Question 15

downsizing

Answer 15

decreasing the size of operations

Question 16

core competency

Answer 16

a special strength that gives an organization a competitive advantage

Question 17

liquidation

Answer 17

when a business closes and sells its assets to pay creditors

Question 18

bcg matrix

Answer 18

a mgt tool that analyzes business opportunities according to market growth rate and market share

Question 19

mission

Answer 19

the organization’s reason for existing in society

Question 20

b2b business strategy

Answer 20

a business approach that involves the use of IT and wen portals to link organizations vertically in supply chains

Question 21

differentiation strategy

Answer 21

a business approach that offers products that are unique and different from those of the competition

Question 22

strategic leadership

Answer 22

leadership that inspires ppl to implement organizational strategies

Question 23

strategic alliances

Answer 23

a situation in which organizations join together in partnership to purse an area of mutual interest

Question 24

strategy

Answer 24

a comprehensive plan guiding resource allocation to achieve long-term organization goals

Question 25

strategy formulation

Answer 25

the process of creating strategies

Question 26

diversification

Answer 26

expansion by entering related or new business areas

Question 27

strategy implementation

Answer 27

the process of putting strategies into action

Question 28

transnational firm

Answer 28

a business entity that tries to operate globally without having a strong national identity

Question 29

cost leadership strategy

Answer 29

a business approach that seeks to operate w lower costs than competitors

Question 30

chapter 11 bankruptcy

Answer 30

protects an insolvent firm from creditors during a period of reorganization to restore profitability

Question 31

focused cost leadership strategy

Answer 31

a business approach that seeks the lowest costs of operations within a special market segment

Question 32

corporate strategy

Answer 32

a mgt strategy that sets long-term direction for the total enterprise

Question 33

restructuring

Answer 33

a business approach that reduces the scale or mix of operations

Question 34

strategic control

Answer 34

a mgt technique that makes sure strategies are wll implemented and that poor strategies are scrapped or changed

Question 35

sustainable competitive advantage

Answer 35

an organizational advantage that is achieved in ways that are difficult to imitate

Question 36

retrenchment strategy

Answer 36

a business approach that changes operations to correct weaknesses

Question 37

globalization strategy

Answer 37

a business approach that adopts standardized products and advertising for use worldwide

Question 38

strategic intent

Answer 38

the focusing of organizational energies on achieving a compelling goal

Question 39

b2c business strategy

Answer 39

a business approach that involves the use of IT and web portals to link businesses w customers

Question 40

swot analysis

Answer 40

a mgt technique that examines organizational strengths and weaknesses as well as environmental opportunities and threats