MGMT 425: Internal Organization, Business-Level, Corporate-Level, and International Strategies

Vocabulary flashcards covering key strategic management concepts from MGMT 425, including internal organization analysis, business models, generic business-level strategies, corporate diversification levels, and international expansion.

Internal Analysis

The process of matching what a firm can do with its resources, capabilities, and core competencies with what it might do to yield insights for selecting strategies.

Tangible Resources

Assets that can be observed and quantified, including financial, organizational, physical, and technological resources.

Intangible Resources

Assets deeply rooted in a firm's history that are relatively difficult for competitors to analyze, purchase, imitate, or substitute for, categorized into human, innovation, and reputational resources.

Capabilities

Assets created by combining tangible and intangible resources to complete organizational tasks required to produce, distribute, and serve goods or services to create value.

Outsourcing

The purchase of a non-value-creating activity or support function from an external supplier to increase flexibility, mitigate risks, and reduce capital investments.

Strategic Competitiveness

A competitive status earned when a firm satisfies a group of consumers using its competitive advantage.

Reach

The dimension of customer relationships that concerns the firm's access and connection to customers.

Richness

The dimension of customer relationships characterized by the depth and detail of the two-way relationship through deeper and broader exchanges.

Affiliation

The dimension of customer relationships that involves facilitating useful interactions with customers to enhance customer satisfaction.

Business-Level Strategy

An organization's core strategy consisting of a set of commitments and strategies the firm uses to gain a competitive advantage by performing activities differently or performing different activities.

Strategic Intent

A firm's decision regarding whether it will perform business functions differently or perform different business functions.

Business Model

A component of a comprehensive business-level strategy that determines what a firm does to create, deliver, and capture value for its stakeholders.

Product to Service

A business model where a company sells the service that a product performs rather than selling the product itself, such as Zipcar.

Disintermediation

A business model strategy where a company sells directly to customers, sidestepping middlemen.

Fractionalization

A business model based on selling partial use of an asset or product.

Freemium

A business model that offers basic services free of charge while charging for premium services.

Low Touch

A business model that lowers prices for consumers by decreasing the amount of services provided.

Negative Operating Cycle

A business model approach that lowers prices by receiving customer payments before delivering the offering.

Cost Leadership Strategy

A business-level strategy focused on maintaining the lowest costs for consumers by reducing backend costs, often achieved through standardization of goods or services and process innovations.

Differentiation Strategy

A business-level strategy that involves selling a product at a higher, acceptable price due to consumers perceiving higher quality or unique value, driven critically by product innovation.

Focus Strategy

A business-level strategy aimed at serving the specific needs of a particular buyer group, product line segment, or geographic market through either cost leadership or differentiation.

Integrated Cost Leadership/Differentiation Strategy

A business-level strategy where a firm produces products at lower costs while incorporating differentiated features, utilizing flexible management systems, information networks, and total quality management systems.

Corporate-Level Strategy

A strategy that specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets.

Single-Business Diversification

A corporate-level diversification category where a company generates 95% or more of its revenue from a single business.

Dominant-Business Diversification

A corporate-level diversification category where a company generates 70% to 90% of its revenue from a single dominant business.

Related Constrained Diversification

A corporate-level diversification category where less than 70% of revenue comes from the dominant business and businesses share direct operational linkages.

Related Linked Diversification

A corporate-level diversification category where less than 70% of revenue comes from the dominant business and businesses share limited linkages.

Unrelated Diversification

A corporate-level diversification category (conglomerates) where less than 70% of revenue comes from the dominant business and there are no linkages between businesses.

International Strategy

A strategy through which a firm sells its goods or services outside of its domestic market.

Modes of Entry

The five entry methods used by firms to enter international markets: exporting, licensing, strategic alliance, acquisitions, and wholly owned subsidiary.