CBAC102 - FINALS

Quantitative, Measurable, Realistic, Understandable, Challenging, Hierarchical, Obtainable, Congruent across departments, Associated with timeline

Desired Characteristics of Objectives

Controls

can be established to focus on actual performance results, activities that generate the performance or on resources that are used in performance.

Feedforward Control, Concurrent Control, Feedback Control

Types of Control

Feedforward Control

is a preventive control such as policy and operational manual

Concurrent Control

control occurs when the activity is still in the process

Cooperative Strategies

to gain competitive advantage with a industry by working with other firms

Collusion

the active cooperation of firms within an industry to reduce output and raise prices in order to get around the normal economic law of supply and demand

Strategic Alliances

long term cooperative arrangement between two or more independent firms or business units that engage in business activities for mutual economic gain

Growth Strategies, Stability, Retrenchment

3 General Orientation of Directional

Vertical Growth

it grows by making its own supplies and / by distributing its own products

Backward Integration

seeking ownership or increased control of firm's suppliers

Forward Integration

gaining ownership or increased control over distributors or retailers

Full Integration

a firm internally makes 100% of its key supplies and completely control its distributors.

Taper Integration (concurrent sourcing)

a firm internally produces less than half of its own requirements and buys the rest from outside suppliers

Quasi-Integration

a company does not make any of its key supplies but purchases most of its requirements from outside suppliers that are under its partial control.

Long Term Contracts

are agreements between two firms to provide agreed upon goods and services to each other for a specified period of time

Horizontal Growth

expanding its operations into other geographic locations and / or by increasing the range of products & services offered to current markets

Exporting

shipping goods produced in the company’s home country to other countries for marketing

Licensing

the licensing firm grants rights to another firm in the host country to produce and sell a product

Franchising

the franchiser grants rights to another company to open a retail store using the franchiser’s name and operating system

Joint Ventures

between a foreign corporation & a domestic company is the most popular strategy used to enter a new country

Acquisition

purchasing another company

Greenfield Development

the company doesn't want to purchase another company's problems along with its assets and build its own manufacturing plant and distribution system

Production Sharing

process of combining the higher labor skills and technology available in developed countries with the lower cost.

Turnkey Operations

are typically contracts for the construction of operating facilities in exchange for a fee.

Management Contracts

corporation can use some of its personnel to assist a firm in a host country for a specified fee and period of time

Diversification Strategies

happens when opportunities for growth depleted

Concentric Diversification

by focusing on its distinctive competence and uses it for diversification

Conglomerate Diversification

diversifying to an industry unrelated to its current one

Stability Strategies

continuing its current activities without any significant change in direction

Pause/Proceed with caution strategy

an opportunity to rest before continuing a growth or retrenchment strategy

No-change Strategy

is a decision to do nothing new

Profit Strategy

is a decision to do nothing new in a worsening situation but instead to act as though the company’s problems are only temporary

Retrenchment Strategies

it is applicable when it has a weak competitive position in some or all of its product lines resulting in poor performance

Turn Around Strategy

emphasizes the improvement of operational efficiency & its probably most appropriate when a corporation's problems are pervasive but not yet critical.

Captive Company Strategy

involves giving-up independence in exchange for security

Sell out/Divestment Strategy

the corporation has multiple business lines & it chooses to sell off a division with low growth potential.

Bankruptcy/Liquidation Strategy

involves giving-up the management of the firm to the courts in return for some settlement of the corporation's obligations

Portfolio Analysis

top management views its product lines & business units as a series of investments from which it express a profitable return.

Corporate Parenting

it views a corporation in terms of resources & capabilities that can be used to build business unit value as well as generate synergies across business units

Lower Cost Strategy

is the ability of a company or a business unit to design, produce and market a comparable product more efficiently than its competitors

Differentiation Strategy

is the ability of a company to provide unique and superior value to the buyer in terms of product quality, special features or after sales service

Tactics

is a specific operating plan that details how a strategy is to be implemented in terms of when and where it is to be put into action

Timing Tactic

first mover/pioneer that establish a reputation as an industry leader

Market Location Tactics

deals with where a company implement a strategy.

Frontal Assault

the attacking firm goes head-to-head with its competitor.

Flanking Maneuver

a firm may attack a part of the market where the competitor is weak.

Bypass Attack

this tactic attempts to cut the market out from under the established defender by offering a new type of product that makes the competitor's product unnecessary.

Encirclement

it occurs as an attacking company or unit encircles the competitor’s position in terms of products or market or both

Guerilla Warfare

it accepts small gains and avoid pushing the establish competitor to the point that it must respond/else lose face

Matrix Structure

functional & product forms are combined simultaneously at the same level of the org.

Network Structure/Virtual Structure

is a series of independent firms or business units linked together by computers in an information system that designs, produces, and markets a product or service.

Reengineering

is the radical redesign of business processes to achieve major gains in cost, service or time

Six Sigma

is an analytical method for achieving near perfect results on a production line

Job Design

refers to the study of individual tasks in an attempt to make them more relevant to the company and to the employee

Job Enlargement

combining tasks to give a worker more of the same type of duties to perform

Job Rotation

moving workers through several jobs to increase variety

Job Enrichment

altering the jobs by giving the worker more autonomy & control over activities

Strategic Management

is a set of managerial decisions and actions that determines the long-run performance of a corporation

Environmental Scanning

the monitoring, evaluating, and disseminating of information from the external and internal environments

Strategy Formulation

the development of long-range plans for managing opportunities and threats in light of strengths and weaknesses

Corporate Strategy

describes a company’s overall direction in terms of growth and management of business and product lines

Functional Strategy

the approach taken by a functional area to achieve objectives and strategies by maximizing resource productivity

Strategy Implementation

the process by which strategies and policies are put into action

Programs

statement of activities or steps needed to accomplish a single-use plan

Budget

a detailed cost of each program

Procedures

a system of sequential steps or techniques describing how a particular task is to be done

Evaluation and Control

the process of monitoring activities and performance results to compare actual with desired performance

Entrepreneurial Mode

a decision-making mode focusing on opportunities, with problems being secondary

Adaptive Mode

a decision-making mode characterized by reactive solutions to problems rather than proactive opportunities

Planning Mode

the systematic gathering of information, generating alternatives, and selecting the best strategy

Logical Incrementalism

a synthesis of planning, adaptive, and entrepreneurial modes of decision making

Steep Analysis

the analysis that scans socio-cultural, technological, economic, ecological, and political-legal environments

Basic Financial Planning

a phase of strategic management where it undergoes the process of assessing the current financial situation of a business to identify future financial goals and how to achieve them

Externally Oriented Strategic Planning

top management takes control of the planning process with the consultant that often provides sophisticated and innovative techniques

Directive

a characteristic of strategy decision-making

Threat of New Entry

one of Porter’s five forces which measures how easily new competitors can enter the market

Buyer Power

one of Porter’s five forces that indicates how much customers can influence prices and quality

Competitive Rivalry

one of Porter’s five forces that shows the intensity of competition among existing firms in the market

Threat of Substitution

the risk that alternative products or services can replace existing offerings

Supplier Power

refers to the influence suppliers have on input prices, quality, and availability. Fewer suppliers or unique resources increase their power

Analyzers

are corporations that operate in at least two different product-market areas

Prospectors

are companies with fairly broad product lines that focus on product innovation and market opportunities

Defenders

refers to companies with a limited product line that focus on improving the efficiency of their existing operations

Strategic Types

is a category of firms based on a common strategic orientation and a combination of structure, culture & processes consistent with that strategy

Brainstorming

is a non-quantitative approach that requires simply the presence of people with some knowledge of the situation to be predicted

Delphi Technique

experts independently assess the likelihoods of specified events

Statistical Modelling

is a quantitative technique that attempts to discover causal or explanatory factors that link two or more time series together

Extrapolation

is the extension of present trends into the future

Expert Opinion

is a non-quantitative technique in which experts in a particular area attempt to forecast likely developments

Prediction Markets

is a recent forecasting technique enabled by easy access to internet

Competency

a cross functional integration and coordination of capabilities

Core Competency

a collection of competency that crosses divisional boundaries, widespread within the corporation and something that the corporation can do exceedingly well

Capabilities

refers to a corporations ability to exploit its resources