MCG1 Ch 4

The acquisition or development of new businesses that produce parts or components of the organization's product.

Vertical integration

A _____ is something that a company does really well relative to its competitors.

core competence

_____ is the basic purpose and values of the organization, as well as its scope of operations

Mission

What is not a strategy implementation step?

Develop mission and goals

In this stage of the basic planning process, managers pay a great deal of attention to the cost of any initiative and the investment return that is likely to result.

Goal and plan evaluation

The first step in the basic planning process is

establishment of mission, vision, and goals

Why do companies integrate vertically?

to reduce their costs

The long-term direction and strategic intent of a company.

Strategic vision

The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities.

Corporate strategy

A strategy used to add new businesses that produce related products or are involved in related markets and activities

Concentric Diversification

A strategy used to add new businesses that produce related products or are involved in related markets and activities.

Concentric diversification

A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities

Conglomerate Diversification

The unique skill and/or knowledge an organization possesses that give it an edge over competitors.

Core competence

The process of identifying the specific procedures and processes required at lower levels of the organization.

Operational planning

A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy.

SWOT analysis

A process planner use, time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration.

Situational analysis

What type of planning involves making decisions about the organization's long-term goals and strategies?

Strategic

A system designed to support managers in evaluating the organization's progress regarding its strategy and, when discrepancies exist, taking corrective action.

Strategic control system

A set of procedures for making decisions about the organization's long-term goals and strategies

Strategic planning