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MANAGEMENT INFORMATION SYSTEM - includes manual and automated systems designed to provide management with timely and relevant information that is necessary to successfully manage the business or department. MARGINAL COSTS - refers to the cost of producing one more product or providing one more transaction. Theoretically, as long as marginal revenue (the current price) is greater than the marginal cost, the firm stands to make a profit on the sale. Unfortunately, few companies understand their true marginal costs. Most text books view marginal costs based only on `the manufacturing costs' of the product. In the information age, the marginal costs of `providing one more unit' is greater than just the cost of production. MARKET ORIENTED DIVERSIFICATION STRATEGY - aims to sell new products to common buyers, channels, or geographic markets in order to reap the benefits of market interrelationships. [Source: M. Porter] (Compare with production-oriented and technology-oriented diversification strategies.) MARKET SEGMENTATION - is concerned with identifying differences in customer needs and purchasing behavior, allowing a firm to serve segments that match its capabilities with distinct marketing programs. Market segmentation tends to focus on the marketing activities in the value chain. (Market segmentation is a subset of industry segmentation.) MARKETING AND SALES - a primary activity associated with pre-sales tasks. Activities within marketing and sales often include: sales management; selling; market research activities; technical literature development (such as user guides and brochures); customer focus groups; convention activities, and more. MISSION STATEMENT - refer to Business Mission. MULTIDOMESTIC INDUSTRY - is one that is present in many countries (for example, certain retail banking industries exist in Australia, in France, and in the United States), but competition occurs on a country-by-country basis. Industries where competition has traditionally exhibited this pattern include retailing, consumer finance, and caustic chemicals. In a multidomestic industry, internal strategy collapses to a series of domestic strategies. [Source: M. Porter] Many industries that were once multidomestic are turning global. For example, private banking for wealthy individuals is becoming a global industry.
MULTIPOINT COMPETITORS - are firms that compete with each other in more than one related business. For example, Scott Paper, Procter & Gamble, Kimberly-Clark, and Johnson & Johnson compete with each other in varying combinations of consumer paper products industries including disposable diapers, paper towels, toilet tissue, and facial tissue. [Source: M. Porter] Most of the Fortune 500 companies and most large financial services companies compete in more than one business. In fact, very few companies compete in just one industry. |
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