A strategy of trying to outperform competitors by doing everything possible to produce goods or services at a cost lower than they do.
What is cost-leadership strategy
100
A separate corporate entity in which two or more companies have an ownership stake.
What is a joint venture
100
A company’s use of capital such as stock, debt, or cash to purchase another company
What is an acquisition
100
Any business activity, such as order processing, inventory control, or product design, that is vital to delivering goods and services to customers quickly or that promotes high quality or low costs.
What is a business process
100
A structure with few hierarchical levels and a relatively wide span of control.
What is a flat structure
200
The process of creating a competitive advantage by designing goods or services to satisfy customer needs
What is product differentiation?
200
A subsidiary where the parent company owns 100 percent of the subsidiary’s stock.
What is a wholly owned subsidiary
200
An agreement between two companies to pool their operations and create a new business entity.
What is a merger
200
A process whereby, in their effort to boost company performance, managers focus not on the company's functional activities but on the business processes underlying its value creation operations.
What is re-engineering
200
The number of subordinates a manager directly manages.
What is span of control
300
The way a company decides to group customers based on important differences in their needs or preferences, to gain a competitive advantage
What is market segmentation
300
A strategy that focuses on increasing profitability by customizing the company’s goods or services so that they provide a good match to tastes and preferences in different national markets.
What is localization strategy
300
The strategy of operating a business unit in a new industry that has no value chain connection a company’s existing business units.
What is unrelated diversification
300
A company’s creation of the value chain functions necessary to start a new business from scratch.
What is an internal new venture
300
The way in which a company allocates people and resources to organizational tasks and divides them into functions and divisions so as to create value.
What is differentiation
400
A strategy that optimizes cash flow
What is a harvest strategy
400
A strategy that focuses on increasing profitability by reaping the cost reductions derived from economies of scale and location economies
What is global standardization strategy
400
A strategy in which a company expands its operations either backward into industries that produce inputs for its core products (backward) or forward into industries that use, distribute, or sell its products (forward).
What is vertical integration
400
A cooperative agreement between two or more companies to work together and share resources to achieve a common business objective.
What is a strategic alliance
400
A structure in which functional managers work with project managers in temporary teams to develop new products
What is a matrix structure
500
The process by which companies increase or decrease product prices to convey their competitive intentions to other companies.
What is price signaling
500
Companies pursuing an this strategy centralize product development functions such as R&D at home. They tend to establish manufacturing and marketing functions in each major country or geographic region in which they do business. Although they may undertake some local customization of product offerings and marketing strategy, this tends to be limited in scope.
What is an international strategy
500
The shutting down of the operations of a business unit and the sale of its assets.
What is a liquidation strategy
500
The movement of a company away from its present state toward some desired future state to increase its competitive advantage and profitability.
What is strategic change
500
The means a company uses to coordinate people, functions, and divisions to accomplish organizational tasks