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Planning | Identifying and selecting appropriate goals and course of action; one of the hour principle tasks of management |
Strategy | A cluster of decisions anout about goals to purse, what actions to take, and how to use resources to achieve goals |
Mission Statement | A broad declaration of an organization's purpose that identifies the organiztions's product and customers and distinguishes the organization from its competitors |
Three steps in Planning | Determine the organization's mission and goals, Formulating strategy, and implementing strategy |
Corporate-level plan | Top management's decisions pertaining to the organization's mission, overall strategy, and structure |
corporate-level strategy | A plan that indicates in which industries and national markets an organization intends to compete |
business-level plan | Divisional managers' decisions pertaining to divisions' long-term goals, overall strategy, and structure |
business-level strategy | A plan that indicates how a division intends to compete against its rival in an industry |
Functional-level plan | Functional managers' decisions pertaining to the goals that they propose to pursue to help the division attain its businees-level goals |
Functional-level strategy | A plan of action to improve the ability of each of an organization's functions to perform its task-specific activities in ways that add value to an organization's good and services |
Time horizon | The intended duraion of a plan |
Scenario Planning | the generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those coniditions |
Strategic leadership | The ability of the CEO and top managers to convey a compelling vision of what they want the organization to achieve to their subordinates. |
Strategy Formulation | The development of a set of corpoate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals. |
SWOT Analysis | A planning exercise in which managers identify organizational strengths, and weaknesses and evironmental opportunites and threats |
Hypercompetition | Permanent, ongoing, intense competition brought about in an industry by advancing technology or changing customer tastes. |
Low-cost Strategy | Driving the organization's cost down below the costs of its rivals |
Differentiation Strategy | Distinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales services |
focused low-cost strategy | serving only one segment of the overall market and trying to be the lowest-cost organization serving that segment |
Focused differentiaion strategy | Serving only one segment of the overall market and trying to be the most differentiated organization serving that segment |
Concentration on a single industry | Reinvesting a company's profits to strengthen its competeitive position in its current industry |
Vertical Integration | expanding a company's operations either backward into an industry that produces inputs for its products or forward into an industry that uses, distributes, or sells its products |
Diversificaiton | Expandin a company's business operations into a new industry in order to produce new kinds of valuable goods or services |
Related Diversification | Entering a new business or industry to create a competitive advantage in one or more of an organization's existing divisions or businesses |
Synergy | Performance gains that result when individuals and departments coordinate their actions |
Unrelated Diversificaiton | Entering a new industry or buying a company in a new industry that is not related in any way to an organization's current businesses or industries |
Global Strategy | Selling the same standardized product and using the same basic marketing approah in each national market |
Multidomestic Strategy | Customizing products and marketing strategies to specif national conditions |
Exporting | Making products at home and selling them abroad |
Importing | Selling products at home that are made abroad |
Licensing | Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee. |
Franchising | Selling to a foreign organization the rights to ise a brand name and operating know-how in return for a lump-sum payment and a share of the profits |
Strategic Alliance | An agreement in which managers pool or share their organization's resources and know-how with a foreign company, and the two organizations share the rewards and risks of starting a new venture |
Joint Venture | A strategic alliance amoung two or more companies that agree to jointy establish and share the ownership of a new business |
Wholly owned foreign subsidiary | Production operations established in a foreign country independent of any local direct involvement |
The five forces model | Level of rivalry among organizations in an industry, potential for entry into an industry, power of large suppliers, power of large customers, threat of substitute products |
When an organization enters into a strategic alliance with a foreign company they share ?
Strategic Alliance
An agreement in which managers pool or share their organization's resources and know-how with a foreign company and the two organizations share the rewards and risks of starting a new venture.
When managers focus on distinguishing the organization's products from those of competitors?
1. With a differentiation strategy, managers try to gain a competitive advantage by focusing all the energies of the organization's departments on distinguishing the organization's products from those of competitors.
Which of the following is the first step in strategy implementation?
1. Set Clear Goals and Define Key Variables. The first step of the process is straightforward: You must identify the goals that the new strategy should achieve.
Which of the following is step 4 of the strategy implementation process?
Step 4: Establish A Communication Plan
Keep in mind that you may need to also develop a communication plan for each strategy included in your workforce plan. Communication plans should include: Goal of the message - Align to the desired outcome.