Business Strategy

Question 1

Competitive and cooperative strategies that emphasize improvement of the competitive position of a corporation’s products or services in a specific industry or market segment

Answer 1

Business Strategy

Question 2

The active cooperation of firms within an industry to reduce output and raise prices in order to get around the normal economic law of supply and demand. This practice is usually illegal.

Answer 2

Collusion

Question 3

a unifying theme

Answer 3

Common Thread

Question 4

the breadth of the company’s or business unit’s target market.

Answer 4

Competitive Scope

Question 5

Strategies that involve working with other firms to gain competitive advantage within an industry.

Answer 5

Cooperative strategies

Question 6

An industry in which a few large companies dominate.

Answer 6

Consolidated industry

Question 7

Strategies that involve working with other firms to gain competitive advantage within an industry.

Answer 7

Cooperative strategies

Question 8

A low-cost competitive strategy that concentrates on a particular buyer group or geographic market and attempts to serve only that niche.

Answer 8

Cost focus

Question 9

A low-cost competitive strategy that aims at the broad mass market.

Answer 9

Cost leadership

Question 10

A competitive strategy that is aimed at the broad mass market and that involves the creation of a product or service that is perceived throughout its industry as unique.

Answer 10

Differentiation

Question 11

A differentiation competitive strategy that concentrates on a particular buyer group, product line segment, or geographic market.

Answer 11

Differentiation focus

Question 12

The ability of a company to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service

Answer 12

Differentiation strategy

Question 13

The first company to manufacture and sell a new product or service.

Answer 13

First mover

Question 14

An industry in which no firm has large market share and each firm serves only a small piece of the total market.

Answer 14

Fragmented industry

Question 15

An independent business entity created by two or more companies in a strategic alliance.

Answer 15

Joint venture

Question 16

Companies that enter a new market only after other companies have done so.

Answer 16

Late movers

Question 17

An agreement in which the licensing firm grants rights to an other firm in another country or market to produce and/or sell a branded product.

Answer 17

Licensing arrangement

Question 18

A strategy in which a company or business unit designs, produces, and markets a comparable product more efficiently than its competitors.

Answer 18

Lower cost strategy

Question 19

Tactics that determine where a company or business unit will compete.

Answer 19

Market location tactics

Question 20

Partnership of similar companies in similar industries that pool their resources to gain a benefit that is too expensive to develop alone.

Answer 20

Mutual service consortium

Question 21

an extremely favorable niche

Answer 21

propitious niche

Question 22

A chart that summarizes an organization’s strategic factors by combining the external factors from an EFAS table with the internal factors from an IFAS table.

Answer 22

SFAS (Strategic Factors Analysis Summary) matrix

Question 23

A partnership of two or more corporations or business units to achieve strategically significant objectives that are mutually beneficial.

Answer 23

Strategic alliance

Question 24

often referred to as strategic planning or long-range planning, is concerned with developing a corporation’s mission, objectives, strategies, and policies.

Answer 24

Strategy formulation

Question 25

Identification of strengths, weaknesses, opportunities, and threats that may be strategic factors for a specific company.

Answer 25

SWOT analysis

Question 26

A short-term operating plan detailing how a strategy is to be implemented.

Answer 26

Tactic

Question 27

Tactics that determines when a business will enter a market with a new product.

Answer 27

Timing tactics

Question 28

A matrix that illustrates how external opportunities and threats facing a particular company can be matched with that company’s internal strengths and weaknesses to result in four sets of strategic alternatives.

Answer 28

TOWS matrix

Question 29

A strategic alliance in which one company or unit forms a long-term arrangement with a key supplier or distributor for mutual advantage.

Answer 29

Value-chain partnership

Question 30

a unique market opportunity that is available only for a particular time.

Answer 30

Strategic Window

Question 31

dominated by a few large companies.

Answer 31

consolidated industry

Question 32

The attacking firm goes head to head with its competitor.

Answer 32

Frontal assault

Question 33

a type of tactic that usually takes place in an established competitor’s market location.

Answer 33

offensive tactic

Question 34

a type of tactic that usually takes place in the firm’s own current market position as a defense against possible attack by a rival.

Answer 34

defensive tactic

Question 35

Rather than going straight for a competitor’s position of strength with a frontal assault, a firm may attack a part of the market where the competitor is weak.

Answer 35

Flanking maneuver

Question 36

Rather than directly attacking the established competitor frontally or on its flanks, a company or business unit may choose to change the rules of the game.

Answer 36

Bypass attack

Question 37

Usually evolving out of a frontal assault or flanking maneuver, encirclement occurs as an attacking company or unit encircles the competitor’s position in terms of products or markets or both.

Answer 37

Encirclement

Question 38

Instead of a continual and extensive resource-expensive attack on a competitor, a firm or business unit may choose to “hit and run.”

Answer 38

Guerrilla warfare

Question 39

According to Porter, this aim to lower the probability of attack, divert attacks to less threatening avenues, or lessen the intensity of an attack.

Answer 39

Defensive Tactics

Question 40

This tactic is any action that increases the perceived threat of retaliation for an attack.

Answer 40

Increase expected retaliation

Question 41

A third type of defensive tactic is to reduce a challenger’s expectations of future profits in the industry.

Answer 41

Lower the inducement for attack