Chapter 2 Flashcards
(33 cards)
What is a leadership plan that achieves a specific set of goals or objectives such as increasing sales, decreasing costs, entering new markets, or developing new products or services
Business strategy
What is a person or group that has an interest or concern in an organization
stakeholder
what is a feature of a product or service on which customers place a greater value than they do on similar offerings from competitors
competitive advantage
what occurs when a company can significantly increase its market share by being first with a new competitive advantage
first-mover advantage
What is the process of gathering information about the competitive environment, including competitors’ plans, activities, and products, to improve a company’s ability to succeed.
Competitive intelligence
What analysis evaluates an organization’s strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies
SWOT analysis
What are the (6) parts of an organization
Partners/Suppliers, Shareholders/Investors, Government, Community, Customers, and Employees.
What evaluates industry attractiveness
the five forces model
what chooses business focus
the three generic strategies
what is executive business strategy
value chain analysis
What are some examples of internal and helpful strengths
core competencies, market leaders, cost advantages, and excellent management
What are some examples of external helpful opportunities
expanded product line, increase in demand, new markets, new regulations
What are some examples of internal harmful weaknesses
lack of strategic direction, obsolete technologies, lack of managerial talent, outdated product line
What are some examples of external harmful threats
new entrants, substitute products, shrinking markets, costly regulatory, requirements
What model analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.
Porter’s Five Forces Model
What is the ability of buyers to affect the price they must pay for an item
buyer power
What is one way to reduce power that are costs that make customers reluctant to switch to another product or service
switching costs
What do companies reduce buyer power that reward customers based on their spending
loyalty programs
What chain consists of all parties involved, directly or indirectly, in obtaining raw materials or a product
supply chain
what is the suppliers’ ability to influence the prices they charge for supplies
supplier power
What does a traditional supply chain look like
suppliers to company to customers
what is the threat of technology for video calls to transportation term meaning
threat of substitute products or services
What is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market
threat of new entrants
What is a feature of a product or service that customers have come to expect and entering competitors must offer the same for survival
entry barriers
