BPS Chapter 8

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1. functional the approach a functional area takes to 15. logistics deals with the flow of products into and out of
strategy achieve corporate and business unit strategy the manufacturing process
objectives and strategies by maximizing
16. information a functional strategy that uses information
resource productivity
technology systems technology to provide competitive
2. Functional Marketing Strategy strategy advantage
Strategies Financial Strategy
17. HRM addresses the issue of whether a company or
R&D Strategy
strategy business unit should hire a large number of
Operations Strategy
low-skilled employees who receive low pay,
Purchasing Strategy
perform repetitive jobs, and will most likely quit
Logistics Strategy
after a short time or hire skilled employees
HRM Strategy
who receive relatively high pay and are cross-
Information Technology Strategy
trained to participate in self-managing work
3. marketing deals with pricing, selling and distributing a teams
strategy product
18. outsourcing is purchasing from someone else a product or
4. Marketing Market Development service that had been previously provided
Strategies Product Development internally
5. market a company or business unit can capture a 19. offshoring the outsourcing of an activity or function to a
development larger share of an existing market for current wholly owned company or an independent
products through market saturation and provider in another country
market penetration or develop new uses
20. corporate pro forma (estimated future) balance sheets
and/or markets for current products
scenarios and income statements that forecast the effect
6. product a company or unit can develop new products each alternative strategy and its various
development for existing markets or develop new products programs will likely have on division and
for new markets corporate return on investment
7. financial examines the financial implications of 21. risk composed not only of the probability that the
strategy corporate and business-level strategic strategy will be effective but also of the
options and identifies the best financial amount of assets the corporation must allocate
course of action to that strategy and the length of time the
assets will be unavailable for other uses
8. leveraged a company is acquired in a transaction
buyout financed largely by debt, usually obtained by 22. real- when the future is highly uncertain, it pays to
a third party, such as an insurance company options have a broad range of options open
or an investment banker
23. political a plan to bring stakeholders into agreement
9. R&D strategy deals with product and process innovation strategy with a corporation's actions
and improvement
24. strategic the evaluation of alternative strategies and
10. R&D Choices technological leader choice selection of the best alternative
technological follower
25. consensus when everyone agrees on one alternative
11. technological pioneering an innovation
26. devil's an individual or a group assigned to identify
leader
advocate the potential pitfalls and problems of a
12. technological imitating the products of competitors proposal
follower
27. dialectical requires that two proposals using different
13. operations determines how and where a product or inquiry assumptions be generated for each alternative
strategy service is to be manufactured, the level of strategy under consideration
vertical integration in the production process,
28. skim the type of pricing that takes advantage of the
the deployment of physical resources, and
pricing demand curve while the product is still novel
relationships with suppliers
and competitors are few to increase profits
14. purchasing deals with obtaining the raw materials, parts,
strategy and supplies needed to perform the
operations function
29. Strategies to -Follow the leader
Avoid -Hit another home run
-Arms race
-Do everything
-Losing hand
30. follow the term for company which keeps up by imitating a leading company while ignoring a firm's particular competitive
leader advantages and the possibility that the leader may be wrong
31. Japan country that developed continuous improvement
32. reverse stock exchanging a high amount of shares for a lower amount of shares
split
33. mass the low-cost production of individually customized goods and services; used by Dell to let customers design their
customization own computers
34. hitting another searching for another super product that will ensure growth and prosperity
home run
35. pull strategy advertising pulls the products through the distribution channels
36. push strategy spending large amounts of money on trade promotion in order to gain or hold self space in retail outlets
37. IT most commonly outsourced activity
38. parallel a process in which two suppliers are the sole suppliers of two different parts, but they are also backup suppliers
sourcing for each other's parts