Ch 11 Key Terms – Flashcards
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planning
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process of identifying and selecting an organization's objectives and deciding how the organization will achieve those objectives
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strategy
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set of planned actions taken by managers to help a company meet its objective
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mission statement
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written statement of why a company exists and what it plans to accomplish
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stakeholders
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all parties, ranging from suppliers and employees to stockholders and consumers, who are affected by a company's activities
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core competency
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special ability of a company that competitors find extremely difficult or impossible to equal
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value-chain analysis
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process of dividing a company's activities into primary and support activities and identifying those that create values for customers
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multinational (multi domestic) strategy
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adapting products and their marketing strategies in each national market to suit local preferences
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global strategy
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offering the same products using the same marketing strategy in all national markets
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growth strategy
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strategy designed to increase the scale or scope of a corporation's operations
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retrenchment strategy
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strategy designed to reduce the scale or scope of a corporation's businesses
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stability strategy
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strategy designed to guard against change and used by corporations to avoid either growth or retrenchment
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combination strategy
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strategy designed to mix growth, retrenchment and stability strategies across a corporation's business units
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low-cost leadership strategy
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strategy in which a company exploits economies of scale to have the lowest cost structure of any competitor in its industry
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differentiation strategy
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strategy in which a company design its products to be perceived as unique by buyers throughout its industry
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focus strategy
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strategy in which a company focuses on serving the needs of a narrowly defined market segment by being the low-cost leader, by differentiating its product or both
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organizational structure
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way in which a company divides its activities among separate units and coordinates activities among those units
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chains of command
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lines of authority that run from top management to individual employees and that specify internal reporting relationship
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international division structure
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organizational structure that separates domestic from international business activites by creating a separate international division with its own manager
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international area structure
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organizational structure that organizes a company's entire global operations into countries or geographic regions
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global product structure
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organizational structure that divides worldwide operations according to a company's product areas
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global matrix structure
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organizational structure that splits the chain of command between product and area divisions
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self-managed team
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team in which the employees from a single department take on the responsibilities of their former supervisors
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cross-functional team
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team composed of employees who work at similar levels in different functional departments
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global team
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team of top managers from both headquarters and international subsidiaries who meet to develop solutions to company-wide problems
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False
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The scope of a corporation's operations refers to the size of its operations.
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global team
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A team of top managers from both headquarters and international subsidiaries who meet to develop solutions to company-wide problems is referred to as a ________ team.
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false
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The closing of factories with unused capacity is an example of a stability strategy.
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false
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A focus strategy works best with mass-marketed products aimed at price-sensitive buyers.
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technology development
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Beanstalk International is a rapidly growing company with well-established subsidiaries in several nations. The company wants to follow a strategy of adapting its products and marketing activities in each national market to suit local preferences. This strategy aims at creating value for its customers. Which of the following is a support activity that creates value for Beanstalk's customers?
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differentiation strategy
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Which of the following business-level strategies should a company follow in order to charge a higher price for its products and enjoy greater customer loyalty?
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false
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Core competencies of organizations are the special skills of certain employees that give a company an edge over other organizations.
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strategy formulation process
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allows managers a chance to step back from day-to-day activities and get a fresh perspective on the direction of the company and its industry
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primary activities
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these include inbound and outbound logistics, production, marketing and sales, and customer service
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support activities
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these include business infrastructure, human resources, technology development, and sourcing
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Identify company mission and goals, Identify company core competency and value-creating activities, Formulate strategies
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What are the three stages of the strategy-formulation process, and what is involved at each stage?
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Multinational
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A company that adapts its products and marketing to local preferences in each national market follows a ______ strategy
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Global product
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The organizational structure that divides worldwide operations according to a company's product areas is called a(n) _____________.
