MGMT 303 Learnsmart #3

Corporate Level-Strategy

When top management decides the industries and national markets in which their organizations plan to compete

Differentiation strategy

distinguishing an organization's product from competitors' through quality, design, or after-sales service

Scenario Planning

generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of the conditions

Standing plans include

policies, rules, and standard operating procedures (SOPs)

Functional level responsibility

Planning necessary to increase the efficiency & effectiveness of their particular department

Franchising

Selling to a foreign organization the rights to use a brand name and operating know-how in return for payment and share of profit

Rolling Plan

Business-level plan that extends over several years and then is amended/updated annually

Focused differentiation strategy

Serving only one or few segments of the market and aim to make their organization the most differentiated company serving that segment

Strategic Alliance

Agreement in which managers pool/share their organization's resources and know how w/ a foreign company -they share rewards and risks of starting a new venture

Synergy

Performance gains that result when individuals and departments coordinate their actions

Corporate-level strategies

Concentration on a single industry, vertical integration, diversification, and international expansion

Multidomestic Strategy

Customized and marketed to accommodate particular national conditions

Business responsibility

Planning & strategy for their particular business division/unit

Strategy Formulation

Development of strategies -Allows an organization to accomplish its mission and achieve its goals

Corporate-level responsibility

Planning & strategy making for the whole organization