Growth, Stability, Renewal - ANSWER-Three "grand" strategies
planning, organizing, leading, controlling - ANSWER-4 functions of management
end
... [Show More] result of decisions and tradeoffs made by management in formulating strategy.
Also, how the firm plans on creates and capturing value - ANSWER-Business Model
transforming process using the internet or e-commerce capabilities
(avoids costly capital investment vis-a-vis vert. integration but harder to capture all profits) - ANSWER-virtual integration
diversification, vertical integration, geographic scope - ANSWER-3 determinants of firm scope
1. Products Diversification; using existing channels to sell new products
2. Geographic Diversification: selling existing products in new channels/geographies
3. Both product + geography: Very risky! (aka suicde sale) - ANSWER-3 diversification strategies
>95% of revenues come from primary activity - ANSWER-Diversification: Single Business
70-95% of revenues come from primary activity - ANSWER-Diversification: Dominant Business
<70% of revenues come from primary activity - ANSWER-Diversification: Related or Unrelated
Coordination costs
Influence costs - ANSWER-Types of Diversification Costs
administrative costs brought on by operating different businesses - ANSWER-Coordination Costs
Corporate executives may be misled by knowledgeable but biased business unit managers - ANSWER-Influence costs
organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically - ANSWER-Capabilities
Political
Economic
Sociocultural
Technological
Ecological
Legal - ANSWER-PESTEL
Valuable
Rare
Costly to Imitate
Organized to Capture Value - ANSWER-VRIO
resource heterogeneity and resource immobility - ANSWER-Two assumptions in resource-based model
Historical condition
causal ambiguity
Social complexity - ANSWER-Why resources can be costly to imitate
strategic
functional
tactical/operational - ANSWER-3 types of plans
-provides direction and coordination
-reduces uncertainty
-establishes goals that lead to productivity standards
-engages all levels of organization and increases job satisfaction - ANSWER-Why is planning important
Functional - includes just one SBU
Divisional - includes more than one SBU - ANSWER-Functional vs Divisional Structure
aligned to business unit
shorter than corporate or SBU plans but typically last more than a year
Examples: marketing plans, production plans, etc. - ANSWER-Functional plans
narrow, short time horizons
Examples: budgets, schedules - ANSWER-Tactical/Operational Plans
-diagnoses competitive challenge
-is a guiding policy to address competitive challenge
-is a set of coherent actions to implement guiding policy - ANSWER-3 Elements of Good Business Strategy
expresses what the organization should become, where it wants to go strategically - ANSWER-Vision Statement [Show Less]