GMS Chap 7 Flashcards Preview

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Flashcards in GMS Chap 7 Deck (62):
1

Competitive Advantage

The ability to do something so well that one outperforms competitors

2

Sustainable Competitive Advantage

The ability to outperform rivals in ways that are difficult or costly to imitate

3

Strategy

A comprehensive plan guiding resource allocation to acheive long-term organization goals

4

Strategic Intent

Focuses and applies organizational energies on a unifying and compelling goal

5

3 Levels of Strategy

- Corporate Strategy
- Business Strategy
- Functional Strategy

6

Corporate Strategy

Sets the long term direction for the total enterprise

7

Business Strategy

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

8

Functional Strategy

Guides the activities within one specific area of operation

9

3 Step Strategic Management Process

- Strategic Analysis
- Strategic Formulation
- Strategic Implementation

10

Strategic Management

The process of formulating and implementing strategies

11

Strategic Analysis

the process of analysing the organization, the environment and the organization's competitive position and current strategies

12

Strategy Formulation

The process of creating strategies to guide the allocation of resources

13

Strategy Implementation

The process of puting strategies into action

14

Mission Statement

Expresses the organization's reason for existance in society

15

5 Stakeholders of an Organization

- Employees
- Comunities
- Shareholders
- Customers
- Suppliers

16

Strategic Constituancies analysis

Assesses the interest of stakeholders and howw well the organization is responding to them

17

Core Values

Broad beliefs about what is or os not appropriate behaviour

18

Organizational Culture

The predominant value system for the organization as a whole

19

Operating Objectives

Specific results that organizations try to accomplish

20

9 Operating Objectives

- Profitatability
- Finantial health
- Cost efficiency
- Customer service
- Product quality
- Market share
- Human talent
- Innovation
- Social responsability

21

SWOT analysis

Examines organizational stranghts and weaknesses and environmental opportunities and threats

22

Strenghts and Weaknesses Examples

- Manufacturing Efficiency
- Workforce
- Market Share
- Financing
- Reputation
- Facilities
- R&D
- Techologies
- Management
- Past planning implementation

23

Opportunities and Threats Examples

- Market
- Economy
- Porter 5 Forces
- New Technologies
- Resources
- Customer Taste
- Regulation

24

Core Competency

A special strength that gives an organization a competitive advantage

25

4 Grand or Master Strategies

- Growth Strategy
- Stability Strategy
- Renewal Strategy
- Combination Strategy

26

Growth Strategy

Involves expansion of the organization current operations

27

Stability Strategy

Maintains current operations without substantial changes

28

Renwal Strategy

Tryes to solve pb and overcome weaknesses that are hurting performance

29

Liquidation

Business operations ceases and assets are sold to pay creditors

30

Combination Strategy

Pursues growth, stability and/or retrenchement in some combination

31

3 Growth Strategies

- Concentration
- Diversification
- Vertical Integration

32

Growth Strategy: Concentration

Growth within the same business area

33

Growth Strategy: Diversification

Gorwth by acquisition of or investment in new and different business area

34

Growth Strategy: Vertical Integration

Growth by acquiering suppliers or distributors

35

3 Restructuring Strategies

- Turnaround
- Downsizing
- Divestiture

36

Restructuring

Changes the mix or reduces the scale of operations

37

Turnaround

Strategy tries to fix specific performance problems

38

Downsizing

Strategy decreases the size of operations

39

Divestiture

Sell off part of the organization to refocuse attention on core business area

40

3 Global Strategies

- Globalization Strategy
- Multidomestic Strategy
- Transnational strategy

41

Globalization Strategy

Adopts standardized products and advertising for use worldwide

42

Multi-domestic Strategy

Customize product and advertizing to best fit local needs.

43

Transnational Strategy

Seeks efficiencies of global operations with attention to local market

44

Strategic Alliance

Organizations joint togather in partnership to persue an area of mutual interest

45

Co-opetition

A form of strategic alliance among competitors that work on a project of mutual benefit

46

2 e-business strategies

B2B Business strategy
B2C business strategy

47

e-business strategy

Strategecly uses the internet to gain competitive advantage

48

B2B business strategy

Uses IT and web portal to link organizations verticaly in the supply chain

49

B2C business strategy

Uses IT and web portals to link business to customers

50

Portfolio Planning

An approach that seeks the best mix of investments among alternative business opportunities

51

BCG Matrix

Analyses business opportunities according to market growth rate and market share (4 types of product: Question marks, Stars, Dogs, Cash Cow)

52

Porter's 4 Competitive Strategies

- Cost leadership strategy
- Differentiation strategy
- Focused low-cost strategy
- Focussed differentiation strategy

53

Differentiation Strategy

Offers product that are different from the competition

54

Cost Leadership Strategy

Seeks to operate with lower cost so that product can be sold at lower price

55

Focused Strategy

Concentrates on serving a unic market segment better that anyone else

56

Focused Differentiation Strategy

Offers a unique product to a special market segment

57

Focused Cost Leadership

Strategy seeks the lower cost of operations within a special market segment

58

Strategic Incrementalism

Makes modest changes in strategy as experience builds over time

59

Emergent Strategy

Unfolds over time as managers learn from and respond to experiences

60

Corporate Governance

System of control and performance monitoring of top management

61

Strategic Control

Makes sure strategies are well implemented and that poor strategies are scrapped or modified

62

Strategic Leadership

Inspiers people to continuously change, refine, and improve strategies and their implementation