Mgt Test 2

Front 1

chapter 6

Back 1

chapter 6

Front 2

Planning

Back 2

– Iden1fying and selec1ng appropriate goals and courses of ac1on for an organiza1on

Front 3

Strategy

Back 3

– A cluster of decisions about what goals to pursue, what ac1ons to take, and how to use resources to achieve goals

Front 4

Corporate-Level Plan

Back 4

Top management’s decisions pertaining to the organiza;on’s mission, overall strategy, and structure.

– Provides a framework for all other planning.

Front 5

Corporate-Level Strategy

Back 5

– A plan that indicates in which industries and na;onal markets an organiza;on intends to compete

Front 6

Business-Level Plan

Back 6

Divisional managers’ decisions pertaining to divisions long-term goals overall strategy, and structure

Front 7

Business-Level Strategy

Back 7

– A plan that indicates how a division intends to compete against its rivals in an industry

Front 8

• Funconal-Level Plan

Back 8

– Functional managers’ decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals

Front 9

Functonal Strategy

Back 9

– A plan that indicates how func7onal managers intend to increase the value of the organiza7on’s goods and services

Front 10

Time Horizon

Back 10

The intended dura6on of a plan.
• Long-term plans are usually 5 years or more. • Intermediate-term plans are 1 to 5 years.
• Short-term plans are less than 1 year.

Front 11

• Standing Plans

Back 11

– Use in programmed decision situa8ons

Front 12

• Single-Use Plans

Back 12

– Developed for a one-8me, non-programmed issue

Front 13

Policies

Back 13

– general guides to ac3on.

Front 14

Rules

Back 14

– formal wri8en specific guides to ac3on.

Front 15

• Standard opera2ng procedures (SOP)

Back 15

– specify an exact series of ac3ons to follow

Front 16

Programs

Back 16

integrated plans achieving specific goals

Front 17

Project

Back 17

– specific ac;on plans to complete programs.

Front 18

scenario planning 6 factors

Back 18

Political, Economic, social, technological, legal, environmental

Front 19

• Mission Statement

Back 19

A broad declara4on of an organiza4on’s purpose that iden4fies the organiza4on’s products and customers and dis4nguishes the organiza4on from its compe4tors

Front 20

Defining the Business

Back 20

Who are our customers?

– What customer needs are being sa.sfied? – How are we sa.sfying customer needs

Front 21

• Low-Cost Strategy

Back 21

Driving the organiza)on’s total costs down below

the total costs of rivals

Front 22

Differen3a3on

Back 22

– Dis)nguishing an organiza)on’s products from the products of compe)tors on dimensions such as product design, quality, or aDer-sales service

Front 23

• Ver$cal Integra$on

Back 23

– expanding a company’s opera%ons either backward into an industry that produces inputs for its products or forward into an industry that uses, distributes, or sells its products

Front 24

Concentra)on on a Single Industry

Back 24

– reinves)ng a company’s profits to strengthen its compe))ve posi)on in its current industry

Front 25

• Diversifica*on

Back 25

– expanding a company’s business opera+ons into a new industry in order to produce new kinds of valuable goods or services

Front 26

• RelatedDiversifica/on

Back 26

– entering a new business or industry to create a compe++ve advantage in one or more of an organiza+on’s exis+ng divisions or businesses

Front 27

Unrelated diversifica/on

Back 27

– entering a new industry or buying a company in a new industry that is not related in any way to an organiza+on’s current businesses or industries

Front 28

• Expor&ng

Back 28

– making products at home and selling them abroad

Front 29

• Impor&ng

Back 29

– selling at home products that are made abroad

Front 30

Licensing

Back 30

allowing a foreign organiza(on to take charge of manufacturing and distribu(ng a product in its country in return for a nego(ated fee

Front 31

Franchising

Back 31

– selling to a foreign organiza(on the rights to use a brand name and opera(ng know-how in return for a lump-sum payment and a share of the profits

Front 32

• Strategic alliance

Back 32

– managers pool resources with those of a foreign

company
– Organiza(ons agree to share risk and reward

Front 33

• Joint venture

Back 33

strategic alliance among companies that agree to jointly establish and share the ownership of a new business

Front 34

Wholly Owned Foreign Subsidiary

Back 34

– managers invest in establishing produc(on opera(ons in a foreign country independent of any local direct involvement

Front 35

strategic leadership

Back 35

the ability of the CEO to portray a compelling vision of what they want their organization to achieve

Front 36

strategy formulation

Back 36

the development of a set of corporate business and functional strategy that allows a organization to accomplish its mission and achieve its goals

Front 37

hyper-compitition

Back 37

permanent ongoing intense competition brought about in an industry by changes in technology or changing consumer taste

Front 38

• Focused Low-Cost

Back 38

– Serving only one market segment and being the

lowest-cost organiza)on serving that segment

Front 39

Focused Differen3a3on

Back 39

– Serving only one market segment as the most differen)ated organiza)on serving that segment