-transportation and distribution control systems
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in transit (pipeline)
-to diversify through vertical integration
-to acquire complementary products or services linked by a common technology and
common customers
-to create or exploit synergies that reduce the combined organizations' costs of
doing business to increase revenues
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, purposes of mergers and acquisitions
a firm concentrates on a specific regional market, product line, or group of buyers
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focus strategy
long-term
intermediate-term
short-term
time frames and explicit time frames or open-ended
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goals by time frame
an inventory system that has necessary materials arriving as soon as they are needed
( just in time) so that the production process is not interrupted
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just-in-time (JIT) method
,the availability of each alternative and its potential payoffs and costs are all
associated with probability estimates
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state of risk
an overall indicator of how well an organization uses all of its resources, such as labor,
capital, materials, and energy, to create all of its products and services
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total factor productivity
judging the decision based on the outcome rather than how exactly the decision was
made in the moment
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outcome bias
everyone involved in the planning process should know what the overriding
organizational strategy is, what the various functional strategies are, and how they are
all to be integrated and coordinated.
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, communication and participation
works best when the firm's competencies are valuable in many different types of
markets
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home replication
-improved employee motivation
-enhances communication
-fosters more objective performance appraisals
-focuses attention on appropriate goals and plans
-helps identify managerial talent
-provides a systematic management philosophy
-facilitates control of the organization
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strengths of formal goal setting
without a commitment from top management, quality improvement will prove to be
just a slogan or gimmick, with little or no real change
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strategic commitment