MGMT Chapter 6
Being responsive to customers
Innovation
Quality
Effectiveness - correct answer-Sustainable competitive advantage occurs when an
organization can stay ahead in four areas:
benefits of related diversification - correct answer--Reduced risk: because more than one
product
-Management efficiencies: administration spread over several businesses
-Synergy: the sum is greater than the parts
building a foundation of execution - correct answer-Know your people & your business
Insist on realism
Set clear goals & priorities
Follow through
Reward the doers
Expand the capabilities
Know yourself
business plan - correct answer-a document that outlines a proposed firm's goals, the
strategy for achieving them, and that standards for measuring success
competitive intelligence - correct answer-means gaining information about one's competitors'
activities so that you can anticipate their moves and react appropriately
contingency planning - correct answer-creation of alternative hypothetical but equally likely
future conditions
-also called scenario planning and scenario analysis
cost leadership strategy - correct answer-keep the costs, and hence prices, of a product or
service below those of competitors and to target a wide market
-Don't be cheap, just negotiate prices
cost-focus strategy - correct answer-keep the costs of a product below those of competitors
and to target a narrow market
defensive strategy - correct answer-involves reduction in the organization's efforts
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Hkane. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £6.52. You're not tied to anything after your purchase.
