Term
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Definition
| development pf strategic alternaties, evaluation of laternatives, and strategic choice |
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Term
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Definition
| when an organization establishes or reaffirms and reaches consensus on its mission, vision, values, and strategic goals (directional goals) - the ends |
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Term
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Definition
| provide the primary methods for achieving the vision (adapting to the environment); concerned with the type and scope of operations and specify the organization will expand, reduce, or maintain operations |
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Term
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Definition
| indicate the method for carrying out the adaptive strategies through purchase, cooperation, or internal development |
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Term
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Definition
| determine the organization's strategic posture and ID the basis for competing in the market; 2 types of strategies: (1) determines an org's strategic posture and (2) positions the org vis-a-vis other org's within the market |
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Term
| implementation strategies |
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Definition
| (value adding service delivery strategies, value adding support strategies, and action plans) most specific strategies -- must be developed to carry out the adaptive, market entry, and competitive strategies |
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Term
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Definition
| broadest strategies that set the funamental direction of the org by establishing a mission for the org and vision for the future; specify the org's values and the strategic goals |
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Term
| expansion of scope strategies |
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Definition
include:
diversification,
vertical integration,
market development,
product development, and
penetration |
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Term
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Definition
| strategies selected b/c markets have been ID-ed outside the org's core business that offer potential for substantial growth; 2 types: related (concentric) and unrelated (conglomerate) |
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Term
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Definition
| when an org chooses to enter a market that is similar or related to its present operations |
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Term
| concentric diversification |
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Definition
| another name for related diversification b/c the org develops a "circle" of related businesses |
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Term
| unrelated diversification |
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Definition
| an org enters a market that is unlike its present operations |
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Term
| conglomerate diversification |
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Definition
| another name for unrelated diversification b/c it involves semi-autonomous divisions or strategic service units; creates a "portfolio" of separate products/services |
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Term
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Definition
| a decision to grow along the channel of distribution of the core operations; purpose is to increase the conprehensiveness and continuity of care, while simultaneously controlling the channel of demand for health care services |
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Term
| backward vertical integration |
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Definition
| when an org grows along the channel of distribution toward its suppliers (upstream) |
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Term
| forward vertical integration |
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Definition
| when an org grows toward the consumer or patient (downstream) |
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Term
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Definition
| a divisional strategy used to enter new markets with present products or services; strongly supported by the marketing, financial, information systems, organizational, and human resources functions; 2 types: horizontal integration & focused factory strategy |
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Term
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Definition
| a method of obtaining growth across markets by acquiring or affiliating with direct competitors rather than using internal operational/functional strategies to take market share from them |
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Term
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Definition
| the fundamental principle that an org that focuses on only one function is likely to perform better |
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Term
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Definition
| the introduction of new products/services to present markets (geographic and segments); takes the form of product enhancements and product line extension |
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Term
| market penetration strategy |
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Definition
| an attempt to better serve current products or services; typically implemented by marketing strategies such as promotional, distribution, and pricing strategies |
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Term
| reduction of scope strategies |
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Definition
decrease the size and scope of operations; include:
divestiture,
liquidation,
harvesting, and
retrenchment |
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Term
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Definition
| a contraction strategy in which an operating strategic service unit is sold off as a result of a decision to permanently and completely leave the market despite its current viability |
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Term
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Definition
| involves selling the assets of an org |
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Term
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Definition
| selected when the market has entered long-term decline |
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Term
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Definition
| a response to declining profitability, usually brough about by increasing odds; directed toward reduction in personnel, the range of products/services, or the geographic market served and represents an effort to reduce the scope of operations |
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Term
| maintenance of scope strategies |
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Definition
| pursued by orgs when management believes the past strategy has been appropriate and few changes are required in the target markets or the org's products/services |
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Term
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Definition
| when management believes that the org is progressing toward its vision and goals but needs to "do things better" |
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Term
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Definition
| strategy often based on the assumption that the market has matured and periods of high growth are over |
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Term
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Definition
| strategies that allow an org to use its financial resources to enter a market quickly, thereby initiating the adaptive strategy |
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Term
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Definition
| entry strategies for expansion through the purchase of an existing org, a unit of an org, or a product/service |
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Term
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Definition
| acquiring a technology or product in a way that's an alternative to acquiring a complete company; agreements which obviate the need for costly and time-consuming product development and provide rapid access to proven technologies |
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Term
| venture capital investments |
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Definition
| offer an opportunity to enter or "try out" a market while keeping risks low |
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Term
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Definition
| the most used and talked about strategies of the late 1990's; include mergers, alliances, and joint ventures |
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Term
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Definition
| similar to acquisitions; 2 orgs combine through mutual agreement to form a single new org, often with a new name |
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Term
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Definition
| loosely coupled arrangements amont existing orgs that are designed to achieve some long-term strategic purpose not possible by any single org |
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Term
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Definition
| the combination of the resources of two or more separate orgs to accomplish a designated task |
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Term
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Definition
| orgs may enter new markets by using internal resources by means of these strategies -- takes the form of internal development, internal ventures, or reconfiguring the value chain |
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Term
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Definition
| uses the existing organizational structure, personnel, and capital to generate new products/services or distribution strategies |
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Term
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Definition
| typically set up separate, relatively independent entities within the org |
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Term
| reconfigure the value chain |
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Definition
| changes the activities or sequence of activities they perform and therefore change how value is delivered to the customer |
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Term
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Definition
| orgs may be classified by how they behave within their market segments or industry |
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Term
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Definition
| focuses on a narrow market with a limited number of products or services and aggressively attempts to defend this market segment through pricing or differentiation strategies |
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Term
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Definition
| orgs that frequently search for new market opportunities and regularly engage in experimentation and innovation |
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Term
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Definition
| a combination of the prospector and defender srategic postures |
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Term
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Definition
| really do not have a strategy or plan and therefore such orgs are both inconsistent and unstable in their response the environment; orgs that perceive opportunities and turbulence but are not able to adapt effectively |
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Term
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Definition
| an org may serve the entire market using marketwide strategies or serve a particular segment of the market using focus strategies |
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Term
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Definition
| 2 fundamental strategies for both marketwide and market segment focus: cost leadership and differentiation |
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Term
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Definition
| position the products/services of the org to appeal to a broad audience |
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Term
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Definition
| market segment strategies that are directed toward the particular needs of a well-defined market segment |
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Term
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Definition
| a positioning strategy designed to gain an advantage over competitors by producing or providing a service at a lower cost than competitors' offerings |
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Term
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Definition
| a strategy to make the product or service different from competitors' products or services |
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Term
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Definition
| used in large complex orgs because no single strategy alone may be sufficient |
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