CHAPTER 7 - CHAPTER 7 Be able to define strategic...

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CHAPTER 7 Be able to define strategic management- set of decisions and actions used to formulate and implement strategies that will provide competitively superior fit between the organization and its environment so as to achieve organizational goals. Be able to define grand strategy and understand the three categories of: 1) Growth -the expanding of business and it can be promoted internally by investing in expansion or externally by acquiring additional business divisions. 2) Stability -means that the organization wants to remain the same size or grow slowly and in a controlled fashion. Also called pause strategy. 3) Retrenchment -the organization is going through a period of forced decline by either shrinking current business units or selling off or liquidating entire businesses. Grand Strategy- The general plan of major action by which an organization intends to achieve its long- term goals. Know what is meant by global strategy and be able to explain: 1) Globalization -the standardization of product design and advertising strategies throughout the world. 2) Multidomestic -the modification of product design and advertising strategies to suit the specific needs of individual countries. 3) Transnational -a strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries. Global strategy -is a coherent strategy to provide synergy among worldwide operations for the purpose of fulfilling common goals. In explaining the above strategies make certain you know the advantages and disadvantages of each. What is strategy ? Strategy is the plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals. Be able to define and understand
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CHAPTER 7 - CHAPTER 7 Be able to define strategic...

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