MGMT 105 Chapter Notes - Chapter 2: Product Design, Rapd, Costco
8 Jun 2016
School
Department
Course
Professor
Document Summary
Strategic planning: organization"s objectives and resources and the evolving market opportunities managerial process of creating and maintaining a fit between the. A number of very different businesses all managed by a larger company. Characteristics: a distinct mission and a specific target market, control over its resources. Its own competitors: a single business or a collection of related businesses, plans independent of the other sbus in the total organization. Diversification: tries to increase market share among existing customers entails attracting new customers to existing products entails the creation of new products for present markets increasing sales by introducing new products into new markets. Large profits but need lots of cash to finance rapid growth generates more cash than it needs to maintain tis market share. Cash cow: market, but the product has a dominant market share. Build a star, hold a cash cow, harvest a question mark, divest a dog also called a problem child.
