Chapter 8 Flashcards
What is strategic management?
Specific planning, decisions/actions that provide a superior fit between organization and its environment to achieve goals.
What is the act of thinking strategically?
Long-term view of organization, improves performance and financial success, essential to business success.
What is explicit strategy?
Plan of action.
What is competitive advantage?
The organizations distinctive edge for meeting customer needs.
What are things that competitive advantage strategies should include?
Exploit core competencies, achieve synergy, create value, target customers.
What is SWOT analysis?
Internal strengths and weaknesses, and external opportunities and threats.
What is the portfolio strategy of formulating corporate level strategy?
The mix of SBU’s (division of company), and product lines to provide synergy and competitive advantage.
What is the BCG matrix of formulating corporate strategy?
Organizes business along two dimensions—growth rate, market share. Four categories for corporate portfolio—combination of high/low market share and high/low business growth.
What is related diversification?
Expansion into new business related to existing business activities.
What is unrelated diversification?
Expansion into new lines of business.
What is vertical integration?
Expansion into businesses that supply to the business or are distributors.
How do you formulate business-level strategy?
Within SBU’s how do we compete, strategies developed by porters five forces, web technology impacting industries in various ways.
What are porter’s five forces affecting industry competition model?
Potential new entrants, bargaining power of buyers, bargaining power of suppliers, and threat of substitute products.
What are porter’s competitive strategies?
Differentiation (distinguish products/services), cost leadership (cost reductions/controls), Focus strategy (concentrate on specific region/buyer, either differentiation or cost leadership approach).
What is strategy execution?
Final step, most important/difficult part, skillfully executed, alignment requires all aspects of organization to focus on strategy goals.
