Please enter something

Chapter 7 – Strategic Management ; Business Policy – 14th Ed.

question

Acquisition
answer

The purchase of a company that is completely absorbed by the acquiring corporation
question

Backward integration
answer

Assuming a function previously provided by a supplier
question

Bankruptcy
answer

A retrenchment strategy that forfeits management of the firm to the courts in return for some settlement of the cooperation’s obligations
question

BOT (Build, Operate, Transfer) Concept
answer

After building a facility, the company operates the facility for a fixed period of time during which it earns back investment, plus profit.
question

Captive Company strategy
answer

Dedicating a firm’s productive capacity as a primary supplier to another company in exchange for a long-term contract
question

Cash Cow – BCG matrix
answer

A product that brings in far more money than is needed to maintain its market share
question

Center of Excellence
answer

A designated area in which a company has a core or distinctive competence
question

Concentration
answer

A corporate growth strategy that concentrates a corporation’s resources on competing in one industry.
question

Concentric Diversification
answer

A diversification growth strategy in which a firm uses its current strengths to diversify into related products in another industry
question

Conglomerate diversification
answer

A diversification growth strategy that involves a move into another industry to provide products unrelated to its current products
question

Corporate Parenting
answer

A corporate strategy that evaluates the corporation’s business units in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across business units.
question

Corporate strategy
answer

A strategy that states a company’s overall direction in terms of its general attitude toward growth and management of its various business and product lines
question

Directional strategy
answer

A plan composed of three general orientations – growth strategy, stability strategy, retrenchment strategy
question

Diversification
answer

A corprorate growth strategy that expands product lines by moving into another industry
question

Divestment
answer

A retrenchment strategy in which a division of a corporation with low growth potential is sold
question

Dogs – BCG matrix
answer

A business that does not seem to provide any remaining opportunities for growth
question

Exporting
answer

Shipping goods produced in the company’s home country to other countries for marketing
question

Forward integration
answer

Assuming a function previously provided by a distributor
question

Franchising
answer

An international entry strategy in which a firm grants rights to another company/indvidual to open a retail store using the franchiser’s name and operating system
question

Full integration
answer

Complete control of the entire value chain of the business.
question

GE Business Screen
answer

One of the popular portfolio techniques
question

Green-field Development
answer

An international entry option to build a company’s manufacturing plant and distribution system in another country
question

Growth Strategy
answer

A directional strategy that expands a company’s current activities
question

Horizontal Growth
answer

A corporate growth concentration strategy that involves expanding the firm’s products into other geographic locations and/or increasing the range of products and services offered to current markets
question

Horizontal Integration
answer

The degree to which a firm operates in multiple geographic locations at the same point on an industry’s value chain
question

horizontal strategy
answer

A corporate strategy that cuts across business unit boundaries to build synergy between business units and to improve the competitive position of one or more business units
question

Joint ventures
answer

An independent business entity created by two or more companies in a strategic alliance
question

Licensing
answer

An agreement in which the licensing firm grants rights to another firm in another country or market to produce and/or sell a branded product
question

Liquidation
answer

The termination of a firm in which all its assets are sold
question

Long term contracts
answer

Agreements between two separate firms to provide agreed-upon goods and services to each other for a specified period of time.
question

Management Contracts
answer

Agreements through which a corporation can use some of its personnel to assist a firm in a host country for specified fee and period of time
question

Merger
answer

A transaction in which two or more corporations exchange stock, but from which only one corporation survives
question

Multipoint Competition
answer

A rivalry in which a large multi-business corporation competes against other large multi-business firms in a number of markets
question

No-Change Strategy
answer

A decision to do nothing new – a choice to continue current operations and policies for the foreseeable future
question

Parenting Strategy
answer

The manner in which management coordinates activities and transfers resources and cultivates capabilities among product lines and business units
question

Pause/proceed with caution strategy
answer

A corporate strategy in which nothing new is attempted; an opportunity to rest before continuing a growth or retrenchment strategy
question

Portfolio Analysis
answer

An approach to corporate strategy in which top management views its product lines and business units as a series of investments from which it expects a profitable return
question

Production Sharing
answer

The process of combining the higher labor skills and technology available in developed countries with the lower-cost labor available in developing countries
question

Profit Strategy
answer

A strategy that artificially supports profits by reducing investment and short-term discretionary expenditures
question

Quasi-Integration
answer

A type of of vertical growth-integration in which a company does not make any of its key supplies but purchases most of its requirements from outside suppliers that are under its partial control
question

Question marks – BCG matrix
answer

New products that have the potential for success and need a lot of cash for development
question

Entrenchment Strategies
answer

Reduce the company’s level of activities
question

Sell-Out Strategy
answer

A retrenchment option used when a company has a weak competitive position resulting in poor performance
question

Stability Strategy
answer

Corporate strategies to make no change to the company’s current direction or activities
question

Stars – BCG matrix
answer

Market leader that is able to generate enough cash to maintain its high market share
question

Synergy
answer

A concept that states that the whole is greater than the sum of its parts; that two units will achieve more together than they could separately
question

Taper Integration
answer

A type of vertical integration in which a firm internally produces less than half of its own requirements and buys the rest from outside suppliers
question

Transaction Cost Economics
answer

Proposes that vertical integration is more efficient than contracting for goods and services in the marketplace when the transaction cost of buying goods on the open market becomes too great
question

Turnaround Strategy
answer

A plan that emphasizes the improvement of operational efficiency when a corporation’s problems are persuasive but not yet critical
question

Turnkey Operations
answer

Contracts for the construction of operating facilities in exchange for a fee.
question

Vertical Growth
answer

A corporate growth strategy in which a firm takes over a function previously provided by a supplier or a distributor
question

Vertical Integration
answer

The degree to which a firm operates vertically in multiple locations on in industry’s value chain from extracting raw materials to manufacturing to retailing