business policy midterm
Terms
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- What is stratedy?
- Managemant's action plan for running the business and conduction operations.
- Sustainable Competitive Advantage?
- is when an attractive number of buyers prefer its products or services over the offerings of competitors
- What is a business model?
- It explains the rationale for why its business approach and strategy weill be a money maker.
- What make a strategy a winner?
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1. How well does the strategy fit the company
2. Is it helping to acheive a competitive advantage
3. Is it resulting in better perfromance - Good Management =
- Good Strategy + Good Execution
- What does the strategy-making, strategy-executing process entail?
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1. Develping a strategic Vision
2. Setting Objectives
3. Crafting a strategy to achhieve objectives
4. Implementing the strategy
5.Evaluating performance - The strategy-making, strategy executing process? 5 Phses
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1. Develop a vision
2. Set objectives
3. Craft strategy to acheive vision
4. Implementation of strategy
5. Evaluatin performance - Phase 1 of The strategy-making, strategy executing process
- Develop a strategic vision
- Phase 2 of The strategy-making, strategy executing process
- Setting Objectives
- Phase 3 of The strategy-making, strategy executing process
- Crafting a strategy to achieve the objectives and vision
- Phase 4 of The strategy-making, strategy executing process
- Implementing and executing the strategy
- Phase 5 of The strategy-making, strategy executing process
- Monitoring developments, evaluating performance, and making corrective adjustments
- A company's values are?
- the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and strategic vision
- Financial objectives?
- Relate to the financial performance of a company. i.e. Profits, Dividend, margins, credit ratings
- strategic objectives?
- Relate to target outcomes that indicate a company's strenght. i.e. Market share, costs, quality, product selection
- Strategic intent?
- is when a company relentlessly pursues an ambitious strategic objective.
- A company's Strategy-Making Hierarcy? 4 stages.
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1. Corporate Strategy
2. Business Strategy
3. Functional-Area strategies
4. Operating strategies - Strategic Plan?
- Lays out the compnay's future direction, performance targets, and strategy
- The role of the Board of Directors. 4 rolls.
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1. Be critics
2. Evaluate Executives
3. Institute Compensation plans for execs
4. Oversee financial reporting practics - The five forces model of competition?
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1. Rival Sellers
2. New entrants
3. Substitute products
4. Supplier pressure
5. Buyer pressure - The 1st force of the Five-Forces model of Competition.
- Competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among RIVAL SELLERS in the industry
- The 2nd force of the Five-Forces model of Competition.
- Competitve pressures associated with the threat of NEW ENTRANTS into the market
- The 3rd force of the Five-Forces model of Competition.
- Competitve pressure coming from the attempts of companies in other industries to win buyer to their own SUBSTITUE PRODUCTS.
- The 4th force of the Five-Forces model of Competition.
- Competitve pressures stemming from SUPPLIER bargaining power and supplier-seller collaboration
- The 5th force of the Five-Forces model of Competition.
- Competitve pressure stemming from BUYER bargaining power and seller-buyer collaboration
- Driving forces?
- are the major underlying causes of changing industry and competitive conditions.
- Strategic group mapping?
- is a technique for displaying the differnet market or competitive positions that rival firms occupy in the industry.
- Strategic group?
- is a cluster of industry rivals that have similar competitive approaches and market positions.
- Key success factors?
- Are the procust attributes, competencies, competitive capabilities, and market achievements with the greatest impact on future competitive success in the amrketplace.
- Competence?
- is and activity that c aompany has learned to perform well
- Core competence?
- is an compaetitively important activity that a company performs better thatn other internal activities.
- Distinctive competence?
- is a competitively improtant activity that a company performs better than its rivals
- Value Chain?
- indentifies the promary activities that create customer value and the related support activities
- Benchmarking?
- Is a poetne tool for learning which companies are best at performing particular activities and then using their techniques to improve the effectiveness of a company's internal activies
- Competitive Strategy?
- Concerns the specifics of manamement's game plan for competing successfully and securing a competitive advantage over rivals.
- The five generic competitive trategies.
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1. Low cost provider
2. Differentiation strategy
3. Best cost provider
4. Niche low cost
5. Niche differentiation - Strategic alliances?
- are collaborative arrangements where two or more companies join forces to achieve mutually beneficial strategic outcomes.