Functional Organization An organizational structure along functional lines eg

Functional organization an organizational structure

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Functional Organization: An organizational structure along functional lines (e.g. marketing, acquisition, asset management, development, finance and accounting, etc.). Functional Strategies: Strategies for each firm’s function or division; integrates into Grand Strategy and ties to Long-Term Objectives. See Grand Strategy; Long-Term Objectives. G Generic Strategies: Three approaches to strategic planning based on different fundamental ideas about how to appeal to the customer. 4
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M.B.A. (Sem. - III) Strategic Management Grand Strategy: A firm’s comprehensive plan of key actions by which it plans to achieve it Long-Term Objectives; usually considers factors such as market development, product development, innovation, horizontal and/or vertical integration, diversification, joint ventures and strategic alliances, turnaround, divestiture, liquidation, etc. Growth Industry: An industry growing at the same rate as the nation’s economy. H Horizontal Integration: The acquisition of similar firms operating at the same stage of the production/marketing chain as the acquiring firm. Utilized to expand into new markets and/or eliminate competition. J Joint Venture: A third party commercial operation established by two or more firms to pursue a particular market, resource supply, or other business opportunity. Created and operated for the benefit of the co-owners. K Key Success Factors: The product attributes, competencies, competitive capabilities and market achievements with the direct bearing on company profitability. L Late Entrants: Firms entering new markets or developing new products after other firms have established them. Also called Latecomers. Leapfrogging: Establishing entirely new competitive space in which a firm is not only a leader but establishes most, if not all, of the standards by which other firms in its industry are measured. 5
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M.B.A. (Sem. - III) Strategic Management Long-Term Objectives: A firm’s intended performance over a multi-year period of time; usually includes measures such as competitive position profitability, return on investment, technology leadership, productivity, employee relations and development, public responsibility. Low Cost Strategy: One of three generic strategies in which a firm attempts to establish itself as the cost leader in the industry. M Market Leader: The company that has control over a certain market. Market Share: The revenues generated by a firm as a percentage of total revenues; usually measured by industries, markets, or products. Matrix Organization: An organizational structure which delegates power to independent operating units which then rely on centralized corporate facilities for functional support.
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  • Fall '14
  • Ravi Prasad

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