Business Administration and Strategic Management Flashcards

Comprehensive vocabulary flashcards covering defensive strategies, Porter's generic strategies, market segmentation methods, SWOT/BCG matrices, and organizational implementation and change management.

Retrenchment

Reducing costs and assets to reverse declining sales and profits.

Divestiture

Selling a business unit, subsidiary, or part of a company.

Liquidation

Closing a business and selling all assets.

Low-Cost Strategy (Porter Type 1)

Offer products at the lowest price to a broad market.

Best-Value Strategy (Porter Type 2)

Offer the best value for the price.

Differentiation Strategy (Porter Type 3)

Offer unique products or services.

Low-Cost Focus Strategy (Porter Type 4)

Lowest price for a niche market.

Best-Value Focus Strategy (Porter Type 5)

Best value for a niche market.

Market Segmentation

Dividing a market into groups of customers with similar needs and buying habits.

Geographic Segmentation

Dividing the market based on Region, Country, or Climate.

Demographic Segmentation

Dividing the market based on Age, Gender, Income, or Education.

Psychographic Segmentation

Dividing the market based on Lifestyle, Personality, or Social Class.

Behavioral Segmentation

Dividing the market based on Loyalty, Usage Rate, Attitude, or Benefits Sought.

Product Positioning

How customers perceive a product compared to competitors; also called Perceptual Mapping.

SO Strategy (SWOT Matrix)

Use strengths to exploit opportunities.

WO Strategy (SWOT Matrix)

Improve weaknesses using opportunities.

ST Strategy (SWOT Matrix)

Use strengths to avoid threats.

WT Strategy (SWOT Matrix)

Reduce weaknesses and avoid threats.

Star (BCG Matrix)

High growth + high market share; requires more investment.

Cash Cow (BCG Matrix)

Low growth + high market share; generates cash/profits.

Dog (BCG Matrix)

Low growth + low market share; usually liquidated or divested.

Strategy Formulation

An intellectual process focusing on effectiveness that occurs before action.

Strategy Implementation

An operational process focusing on efficiency that occurs during action.

Avoidance (Conflict Management)

Ignore or avoid the conflict.

Defusion (Conflict Management)

Reduce tension and emphasize shared goals.

Confrontation (Conflict Management)

Directly discuss the problem and solve it.

Functional Structure

Organized by functions such as Marketing, Finance, HR, and MIS; simple and low cost.

Divisional Structure

Organized by Product, Region, Customer, or Process.

Restructuring

Reducing employees, divisions, and levels to achieve cost reduction.

Reengineering

Redesigning jobs, work, and processes to improve cost, quality, service, and speed.

Force Change Strategy

Giving orders and enforcing them.

Educative Change Strategy

Providing information and education/awareness.

Self-Interest Change Strategy

Showing personal benefits of change.

Contingency Planning

Alternative plans for unexpected events.