Ch 6 Principles of Management (Kinicki & Williams)

3 common Grand Strategies
Growth Strategy, Stability Strategy, Defensive Strategy
3 Core Processes of Business
People, Strategy, Operations
BCG Matrix
Means of evaluating strategic business by Growth Rates and Share of the Market
Benchmarking
Comparing your organization to the highest performing organizations
Cash Cow
BCG Matrix that has slow growth but a high market share
Competitive Intelligence
Gaining information about your competition to anticipate and act appropriately
Contingency Planning
The creation of alternative hypothetical but equally likely future conditions
Cost Leadership Strategy
One of Porter’s 4 competitive strategies keeping the cost and hence prices of a product or service below those of competitors and to Target a wide Market
Cost-Focus Strategy
Keeping the costs and prices of a product or service below those of competitors and to Target a narrow Market
Current Reality Assessment
Assessment to look at where the organization stands and see what is working and what could be different so as to maximize efficiency and Effectiveness in achieving the
Defensive Strategy
This strategy involves reduction in the organization’s efforts
Differentiation Strategy
Offering products or services that are of unique and Superior value compared with those of competitors but to Target and white Market
Diversification Strategy
Company operates several businesses in order to spread the risk
Dogs
Low growth low market share
Focused-Differentiation
Offering products or services that are unique and Superior value compared to those of competitors and to Target and narrow Market
Forecast
A view or projection of the future
Growth Strategy
Grand strategy that involves expansion
How to keep a strategic plan on track
Michael Porter primary competitive forces
Cost leadership strategy, differentiation strategy, cost Focus strategy, Focus differentiation strategy
Mission Statement
Statement that expresses the purpose of the organization
Opportunities
Situations that present possibilities for exceeding existing goals
Question Marks
Single product strategy
Strategy by which a company makes and sells only one product within its Market
Stability strategy
This strategy involves little or no significant change
Strategic positioning
Strategy that attempts to achieve sustainable competitive Advantage by preserving what is distinctive about a company
Stars
High growth High market share
Strategic planning
Strategic formulation
The process of choosing among different strategies and altering them to best fit the organization’s needs
Strength
What your company does well
Sustainable competitive advantage
Threats
Trend analysis
A hypothetical extension of a past series of events into the future
Vision statement
Statement that expresses what the organization should become and where it wants to go
Related Diversification
An organization under one ownership operate separate businesses that are related to one another
Unrelated diversification
Operating several businesses under one ownership that are not related to one another