Operations Chapter 2

An org's reason for being as expressed in a mission statement.

A co's view of its mission as it evolves into the future.

The broad target a co. is attempting to achieve in support of the corporate mission and vision.

In business, a comprehensive plan for future action directed tward achieving various goals, including making the corporate vision a reality.

An action designed to support a strategy.

An administrative control intended to communicate expectations and that is in place before a reporting period begins.

An admin control used b/t reporting periods to monitor operations and indicate whether ongoing processes are within tolerances.

An admin control used at the END of a measurement period to compare actual performance/output with established standards.

In business org, the establishment of congruent positioning b/t operational efforts with the corporate structure and corp strategy.

The responsibility & authority of a co's board of directors to direct the org to properly fulfill its missions on behalf of the co's legitimate stakeholders in a legal and fiscally responsible manner.

A problem that exists when one person is paid to act on behalf of another, but the 2 individs have different interests, have access to different info about the agents activities, and have different incentives.

A conflict that exists when the interests or actions of one entity, like an empee, are incompatible w/the interests or actions of a related entity, like an employer.

A co's broad plan for achieving competitive advantage in all its undertakings, across all lines of its business.

The action plan of a line of business, aka a product line, aka a business unit, aka strategic business unit.

A strategy that encompasses only corporate or business strategies and tactics devoted to achieving or maintaining the co's advantageous position relative to competitors.

A strategy that drives plans for a specific functional area or dept.

An action plan for a narrow area dealing w/day to day activities & operating w/in a budget dictated by the co's functional plan and functional management.

A real or hypothetical forum where sellers and buyers exchange resources, including services.

A structure representing the number and relative sizes of sellers in a specified group.

A structure representing the nature of the competitive relationships among the various co's in an industry.

A co's %age representation in a given measure of the size of the entire market.

The %age of total customers for a given product or service who are also customers of a particular co.

A listing of co's w/in an industry in order of a specified measure of their size.

A co's prominent competitive position relative to its competitors in terms of market share percentage.

A measurement of the # of co's w/in a specified set of co's and the distribution among them of their total reserves.

A measure of industry concentration consisting of the %age market share attributable to a given number of the largest firms in an industry, and sometimes calculated by taking the sum of the %age market shares of the top few co's in an industry.

The measurable characteristics of a market or an industry, including the number of sellers, number of buyers, availability of substitute products, role of pricing, role of advertising, role of regulation, and economies of scale.

In economics, two or more products that purchasers can use to satisfy the same wants or needs.

In economics, savings that accrue to a seller due to having large scale financial assets.

In economics, savings that accrue to a seller due to having large scale physical operations.

In economics, a model of a market having MANY SELLERS, SIMILAR PRODUCT, a customer perception of NON PRICE DIFFERENCES, INSIGNIFICANT BARRIERS TO ENTRY to new sellers, USE OF BRAND NAMES, and reliance on ADVERTISING.

In economics, a model of a market having FEW SELLERS, UNDIFFERENTIATED PRODUCT, VIGOROUS ADVERTISING, SIGNIFICANT BARRIERS TO ENTRY.

A co's distinctive strengths that form the basis for the co's ability to add value in its transformative processes.

A position or circumstance that allows a co to earn greater returns or faster mkt growth than its competitors, whether in the short run or potentially in the long run.

competitive advantages have not been duplicated or imitated by competitors in the long run.

competitors quickly emulate

In co strategy, an overall plan to promote co growth

A strategy that supports growth in broad markets by creating a clear distinction b/t a co and its competitors.

A strategy that supports growth in broad markets by offering customers the same benefits as other co's, but at a lower cost of production, and presumably at a lower price.

An approach to growth thru focus on a management practice or subset of the total market.

Growth strategy of replacing an industry's present model for value creation with a groundbreaking improvement in products or operations that competitors cannot readily adopt.

In competitive stragegy, a growth strategy of successfully developing and exploiting new knowledge that no other firm in the industry possesses.

A growth strategy of successful competition based on providing superior customer service.