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
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