Management Chapter 6 Quiz

Mission statement
Broad declaration of an organization’s purpose that identifies the organizations products and customers and distinguishes the organization from its competitors
Corporate level strategy
A plan of action to manager the growth and development of an organization as to maximize its long-run ability to create value
Business-level strategy
Plan of action to take advantage of favorable opportunities and find ways to counter threats so as to compete effectively in an organization
BL low-cost strategy
Driving the organizations total costs down below the total costs of the rivals
BL Differentiation strategy
Distinguishing an organization’s products from the competitor’s products on dimensions such as product design, quality or after sales service
BL focused low-cost
Serving only one segment of the overall market & trying to be the lowest cost organization serving that segment
focused differentiation
Serving only one segment of the overall market and trying to be the most differentiated organization serving that segment
CL : diversification
Expanding a company’s business operations into a new industry in order to produce new kinds of valuable goods or services
CL : Related diversification
Entering a new businesses industry to create a competitive advantage in one or more organization’s existing divisions or business
Economies of scope
Cost savings that occur when a firm transfers capabilities and competences developed in one of its business to another of its business
International strategy
➢A strategy through which the firm sells its goods or services outside its domestic market.
Global strategy
Selling the same standardized product and using the same basic marketing approach in each national market
Multi-domestic strategy
Customizing products and marketing strategies to specific national conditions
Licensing
Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or work region in return for a negotiated fee