a company or business unit can

1. capture a larger share of an existing market for current products thorugh market saturation and market penetration
2. develop new uses and/or markets for current products

a company or unit can

1. develop new products for existing markets
2. develop new products for new markets

When pricing a new product, a company can follow one of two strategies:

1. Price skimming--offers the opportunity to "skim the cream" from the top of the demand curve with a high price while the product is novel and competitors are few. 
2. Pentration pricing--attempts to hasten tmarket development and offers the pioneer the opportunity to use the experience curve to gain market share with a low price and then dominate the industry. (More likely to better long-term operating costs)

**dynamic pricing--a practice in which prices vary frequently based upon demand, market segment, and product availability

examines the financial implications of corporate and business-level strategic options and identifies the best financial course of action; can also provide a competitive advantage through a lower cost of funds and a flexible ability to raise capital to support a business strategy. Attempts to maximize the financial value of a firm. 

Trade-off bt achieving the desired debt-to-equity and relying on internal long-term financing via cash  flow is a key issue. 

**influenced by it corporate diversification strategy. 

• technological leader:pioneering an innovation or,
• technological follower: imitating the products of competitors

**a way of achieving overall low cost or differentiation

deals with obtaining the raw materials, parts, and supplies needed to perform the operations function. 

• multiple sourcing: purchasing company orders a particular part from several vendors. Superior b/c: -it forces suppliers to compete for the business of an important buyer, thus reducing purchasing costs -if one supplier cant deliver, another usually can, thus guaranteeing that parts and supplies are always on hand when needed. 

the flow of products into and out of the manufacturing process. Three trends:

-centralization

-outsourcing

-the use of the Internet

is the outsourcing of an activity or function to a wholly owned company or an independent provider in another country

**key is to outscource activities that are not key to the company's distinctive competencies. 

1. mutual exclusivity: doing any one alternative would preclude doing any other
2. success: it must be feasible and have a good probability of success
3. completeness: it must take into account all the key strategic issues
4. internal consistency: it must make sense on its own as a strategic decision for the entire firm and not contradict key goals, policies,  and strategies

1. Who are the people who will carry out the strategic plan?
2. what must be done to align the company's operations in the new intended direction?
3. How is everyone going to work together to do what is needed?

to help managers decide how quickly change should proceed, in what order changes should take place, whether to start at a new site, and whether the propsed systems are stable and coherent. 

Used to address the following types of questions:

1. feasibility
2. sequence of execution
3. location
4. pace and nature of change
5. stakeholder evaluations

exists for a divisional corporation if the return on investment of each division is greaterthan what the return would be if each division were an independent business. Can take place in one of six forms:

• shared know how
• coordinated strategies
• shared tangible resources
• Economies of scale/scope
• pooled negotiating power
• new business creation

functional and product forms are combined simultaneously at the same level of the organization

• temporary cross-functional task force
• product/brand management
• mature matrix

radical redesign of business processes to acheive major gains in cost, service, or time...an effective program to implement a turnaround strategy

• organizate around outcomes, not tasks
• have those who use the output of the process perform the process
• subsume information-processing work into the real work that produces information
• treat geographically dispersed resources as though they were centralized
• link parallel activities instead of integrating their results
• put the decision point where the work is perfomred and build control into the process
• capture information once and at the source

refers to the study of individual tasks in an attempt to make them more relevant to the company and to the employees

• job enlargement--combining tasks to ive a worker more of the same type of duties to perform
• job enrichment--altering the jobs by giving the worker more autonomy and control over activities
• job characteristics model--     

• power distance--the extent to which a society accepts an unequal distribution of power in organizations. mexico is high, germany is low
• individualism-collectivism--the extent to which a society values individual freedom and indepence of action compared with a tight social framework and loyalty to the group.
• Masculinity-feminity--the extent to which society is oriented toward money and things, power, money (M) or toward people/relationships(F)

Activity based costing

(ABC)

Enterprise Risk Management

(ERM)

combines financial measures that tell the results of action already taken with operational measures on customer satisfaction, internal processes, and the corporation's innovation and improvement activities--the drivers of future financial performance

-financial

-customer

-internal business perspective

-innovation and learning

Enterprise resource planning

(ERP)