Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

ibus 44o2 > badm 3-7 > Flashcards

badm 3-7 Flashcards

(59 cards)

Start Studying
1
Q

What leads to strategic competitiveness and above-average returns?

A

Matching core competencies with opportunities in the external environment

Core competencies are identified by studying the firm’s internal organization, while opportunities are determined by studying the firm’s external environment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Why are competitive advantages not permanently sustainable?

A

Rivals can duplicate value-creating propositions using their unique resources and capabilities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are resources in the context of organizations?

A

Broadly cover individual, social, and organizational phenomena, bundled to create organizational capabilities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Define tangible resources.

A

Assets that can be observed and quantified, such as production equipment and manufacturing facilities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Define intangible resources.

A

Assets rooted in the firm’s history, difficult for competitors to analyze and imitate, and more valuable in creating capabilities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are core competencies?

A

Capabilities that serve as a source of competitive advantage over rivals.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the significance of strategic human capital?

A

Allows a firm to develop capabilities by matching employee knowledge, skills, and abilities to strategic objectives.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What must firms do to effectively manage core competencies?

A

Carefully analyze the firm’s resources and capabilities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What criteria must a capability meet to be considered a core competence?

A

Valuable, rare, costly to imitate, and nonsubstitutable.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is value chain analysis used for?

A

To identify and evaluate the competitive potential of resources and capabilities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is outsourcing?

A

The purchase of a value-creating activity from an external supplier.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What does a business-level strategy consist of?

A

An integrated and coordinated set of commitments and actions to gain a competitive advantage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the five business-level strategies?

A
  • Cost leadership
  • Differentiation
  • Focused cost leadership
  • Focused differentiation
  • Integrated cost leadership/differentiation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the three customer-related issues firms examine in business-level strategies?

A
  • Who: customer groups to serve
  • What: customer needs to satisfy
  • How: core competencies to use
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a business model?

A

Describes how a firm creates, delivers, and captures value for stakeholders.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is business model innovation?

A

Replacing an outdated business model with a newer one.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is the cost leadership strategy?

A

Producing no-frills, standardized products for typical customers at low cost.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

List competitive risks associated with the cost leadership strategy.

A
  • Loss of competitive advantage to new technologies
  • Failure to detect changes in customer needs
  • Competitors imitating the cost leader’s advantage
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What does the differentiation strategy involve?

A

Providing customers with products that have different and valued features.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

List risks associated with the differentiation strategy.

A
  • Customer group deciding unique features are not worth a premium
  • Inability to create value for premium pricing
  • Competitors providing similar features at lower cost
  • Threat of counterfeiting
  • Failing to implement differentiation effectively
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is the focus strategy?

A

Serving the needs of a narrow market segment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

List competitive risks of focus strategies.

A
  • Competitors out-focusing the focuser
  • Industry-wide competitors focusing on specialized needs
  • Reduction in differences between narrow and industry-wide market needs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What does the integrated cost leadership/differentiation strategy strive for?

A

Providing low-cost products with valued differentiated features.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is competitive rivalry?

Study These Flashcards
A

The ongoing set of competitive actions and responses between competitors.

25
What are competitive actions?
Strategic, tactical, or non-market actions taken to defend or build competitive advantages.
26
What is a strategic action?
Requires significant commitment of resources, difficult to implement and reverse.
27
What is a tactical action?
Requires fewer resources, easier to implement and reverse.
28
What factors shape a firm's awareness, motivation, and ability in competitive analysis?
* Market commonality * Resource similarity
29
What are first-mover benefits?
Gaining loyal customers and above-average returns by being the first to take a competitive action.
30
What is organizational size's impact on competitive actions?
Reduces variety in actions by large firms, increases variety by smaller firms.
31
What is the role of quality in competitive advantage?
A necessary but insufficient condition for establishing an advantage.
32
What are slow-cycle markets characterized by?
Firms can maintain competitive advantages for some time.
33
What defines fast-cycle markets?
Firms develop temporary competitive advantages subject to rapid imitation.
34
What is a corporate-level strategy?
A strategy to become more diversified to create more value for stakeholders.
35
What are economies of scope?
Cost advantages that firms obtain due to the scale of their operations.
36
What is the purpose of a corporate-level strategy?
To become more diversified and create more value for stakeholders
37
What advantages can a single- or dominant-business corporate-level strategy provide?
Can be preferable unless economies of scope, financial economies, or market power can be developed
38
What are the main sources of value creation in a corporate-level strategy with high levels of diversification?
* Economies of scope * Market power
39
What does the related diversification corporate-level strategy involve?
Sharing activities or transferring competencies between different businesses in a company’s portfolio
40
What is operational relatedness?
Sharing tangible resources between businesses
41
What challenges are associated with sharing activities in related constrained diversification?
* Costly to implement and coordinate * May create unequal benefits * Can lead to fewer managerial risk-taking behaviors
42
What does corporate relatedness involve?
Transferring core competencies across business units or from corporate headquarters to a business unit
43
What are two ways to accomplish successful unrelated diversification?
* Efficiently allocating resources * Restructuring a target firm’s assets
44
What are some value-neutral reasons for pursuing diversification?
* Incentives from tax and antitrust policies * Low performance * Uncertainties about future cash flow
45
What can managerial motives to diversify lead to?
An unprofitably high level of diversification and a reduction in a firm’s ability to create value
46
What factors should managers consider when deciding on the level of diversification?
* Internal organization * External environment
47
What is a merger?
A strategy where two firms agree to integrate their operations on a relatively coequal basis
48
What differentiates an acquisition from a merger?
An acquisition involves buying most or all of a company's stock to make it a subsidiary
49
What is a horizontal acquisition?
Acquisition of a company competing in the same industry as the acquiring firm
50
What is the purpose of using acquisition strategies?
* Increase market power * Overcome entry barriers * Avoid costs of developing new products * Reduce risk of entering new business * Become more diversified * Reshape competitive scope * Enhance learning for new capabilities
51
What are common problems associated with acquisition strategies?
* Difficulty integrating firms * Incorrectly evaluating target firm’s value * Creating high debt loads * Overestimating synergy potential * Creating excessive diversification
52
What characteristics define effective acquisitions?
* Complementary resources * Friendly acquisition facilitating integration * Thorough due diligence * Considerable slack in cash or debt capacity * Low/moderate debt levels * Experience in adapting to change * Emphasis on R&D and innovation
53
What does restructuring by downsizing involve?
Reducing the number of employees and hierarchical levels in the firm
54
What is the goal of restructuring through downscoping?
To reduce the firm’s level of diversification by divesting unrelated businesses
55
What is a leveraged buyout (LBO)?
A firm is purchased to become a private entity, usually financed through debt
56
What are the three types of LBOs?
* Management buyouts (MBOs) * Employee buyouts (EBOs) * Whole-firm LBOs
57
Why are MBOs often the most successful type of buyout?
They provide clear managerial incentives
58
What is the primary goal of restructuring?
Gaining or reestablishing effective strategic control of the firm
59
Which restructuring strategy is most aligned with establishing strategic controls?
Downscoping

ibus 44o2 (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions