SBA F1

Corporate strategy

tells us primarily about the firm’s choice of direction

Growth strategies

is about expanding the company's activities

stability strategies

make no changes to the company's current activities

retrenchment strategies

reduce the company's level of activities

combination strategies

puts together the advantageous components of growth, stability, and retrenchment strategies together

Corporate strategy

is the general direction for the growth of multiple businesses as defined in the corporation's vision and mission.

board of directors

On a corporate level, the ________ is responsible for setting and implementing the strategic plans and directions of the different companies or business units under its helm.

business strategy

A_____ determines where and how a company should compete by creating a competitive market advantage to generate sustainable and profitable returns.

military strategies

Business is war and the business world has adopted and modified _____ to compete and win in the market.

Operational effectiveness

allows an organization to maximize available resources to quickly manufacture products with near-zero defects compared to its competitors.

Functional strategies

_____ are confined within a department that operates with set goals, objectives, and performance metrics.

Michael Porter

a Harvard Business School professor, introduced a framework that outlines generic competitive strategies for businesses to gain a sustainable market advantage.

Cost Leadership Strategy

This refers to a company's ability to efficiently reduce production costs compared to its competitors.

Differentiation Strategy

The company offers its customers products with superior features unique to the marketplace compared to its competitors.

Focus Strategy

The company offers its products to a narrow industry segment or market niche.

Cost leadership

is building competitive advantages through having the lowest operational cost among similar companies in the industry.

operational cost and selling price

The goal of cost-leaders is to lower both ________- ________

cost leadership strategy

A ________ is achieved when a firm efficiently mass-produces or when it manufactures volume-driven standardized products for a large market to achieve economies of scale.

differentiation strategy

Businesses adopt a __ to provide the market with different and distinct products from their competitors.

product differentiation strategy

A _________ creates a competitive advantage with products that are unique and, more importantly, superior to a firm's competitors.

market research

Nonetheless ________ is still the disciplined approach to protect the firm's differentiation investments.

Design-driven innovation

is a strategic resource that brings more value and clearly differentiates a product.

focus strategy

A _________ is a strategic management approach that allows a company to determine the niche market to target.

stability strategies

Businesses adopt _________ because they are satisfied with their financial performance, market conditions are not favorable, or in the process of implementing a long term strategic plan that requires recalibrating activities to maximize results.