GMS 200 chapter 10

stakeholders

All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address. An important test of the mission is how well; it serves the organizations stakeholders.

transnational strategy

Balance efficiencies in global operations and responsiveness to local markets

analysis of core values

Broad beliefs about what is or is not appropriate behavior. Organizational culture reflects the predominant value system of the organization as a whole

liquidation

Business closes and sells assets to pay creditors

analysis objectives

Operating objectives are specific results that organizations try to accomplish

globalization strategy

World is one large market; standardize products and advertising as much as possible

diversification

a growth strategy through starting up or acquiring businesses outside the company's current products and markets

oligopoly

a state of limited competition, in which a market is shared by a small number of producers or sellers.

integration

acquiring suppliers or distributers (vertical integration)

Porter's five strategic competitive forces

bargaining power of suppliers, bargaining power of customers, threat of new entrants, threat of substitute products, level of competition or rivalry among firms in industry

level of strategies

corporate, business, functional

multidomestic strategy

customizing products and marketing strategies to specific local markets

Porter's generic strategies for gaining competitive advantage

differentiation, cost leadership, focused (focused cost leadership and focused differentiation)

BCG Stars

dominant position, growing industry

BCG cash cows

dominant position, low growth industry

strategic intent

focuses and applies organizational energies on a unifying and compelling goal

concentration strategies

grow within the same business area

functional strategies

guides the use of resource allocation within one specific area of operations, asks "how do we support each of our business strategies?"

business strategies

how a division or strategic business unit will compete in its product or service domain, asks "how do we compete in each of our major businesses?"

strategic leadership

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

strategy formulation

involves assessing existing strategies, organization, and environment to develop new strategies and strategic plans capable of delivering future competitive advantage

types of retrenchment and restructuring strategies

liquidation, downsizing, divestiture, turnaround

critical tasks of strategic leadership

maintain control, be the guardian of trade-offs, create a sense of urgency, ensure that everyone understands the strategy, be a teacher

strategic control

makes sure strategies are well implemented and that poor strategies are scrapped or changedai

sustainable competitive advantage

one that is difficult or costly for competitors to imitate

types of strategic alliances

outsourcing alliances, supplier alliances, distribution alliances

strategy

plan guiding resource allocation to achieve long-term goals

BCG Question Marks

poor position, growing industry

BCG Dogs

poor position, low growth industry

strategic analysis

process of analyzing the organization, the environment, its competitive positioning, and current strategies

strategic management

process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage

Typical operating objectives

profitability, sustainability, social responsibility, financial health, cost efficiency, customer service, product quality, market share, human capacity, innovation

retrenchment and restructuring strategies

pursue radical changes to solve problems, chapter 11 bankruptcy

portfolio planning model

seeks the best mix of investments among alternative business opportunities- BCG matrix

divestiture

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

corporate strategies

sets long-term direction for the total enterprise, asks "what businesses are wee in?"

potential core competencies

special knowledge or expertise, superior technology, efficient supply chains, unique product distribution systems

core competency

special strength that gives an organization competitive advantage

SWOT analysis

strengths, weaknesses, opportunities and threats

sources of competitive advantage

technology, cost and quality, knowledge and speed, barriers to entry, financial resources

competitive advantage

the ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than they do

strategy implementation

the process of putting strategies into action

co-opetition

the strategy of working with rivals on projects of mutual benefit

corporate governance

the system of control and performance monitoring of top management

BCG Matrix

ties strategy formulation to analysis of business opportunities according to industry market growth rate (low vs. high) and market share (low vs. high)

turnaround strategy

tries to fix specific performance problems

strategic alliance

two or more organizations partner to pursue an area of mutual interest