Chapter 3 Flashcards
(19 cards)
Chief Information Officer (CIO)
a management role; managing the firm’s relationship with stakeholders. Works with CTO to ensure that information needed to formulate, implement, and evaluate strategies is available where and when it is needed.
Chief Technology Officer (CTO)
a technician role; focusing on technical issues such as data acquisition, data processing, decision-support systems, and software and hardware acquisition. Works with CIO to ensure that information needed to formulate, implement, and evaluate strategies is available where and when it is needed.
Competitive Analysis
an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both offensive and defensive strategic context to identify opportunities and threats.
Competitive Intelligence (CI)
a system and ethical process for gathering and analyzing information about the competiton’s activities and general business trends to further a business’s own goals. Three basic objectives of a CI program are: to provide a general understanding of an industry and its competitors; to identify areas in which competitors are vulnerable and to assess the impact strategic actions would have on competitors; and to identify potential moves that a competitor might make that would endanger a firm’s position in the market.
Competitive Profile Matrix (CPM)
identifies a firm’s major competitors and its particular strengths and weaknesses in relation to a sample firm’s strategic position.
Director of Competitive Analysis
planning, collecting data, analyzing data, facilitating the process of gathering and analyzing data, disseminating intelligence on a timely basis, researching special issues, and recognizing what information is important and who needs to know.
Environmental Scanning
a.k.a. industry analysis or external strategic management audit focuss on identifying and evaluating trends and events beyond the control of a single firm, such as increased foreign competition, population shift to the Sunbelt, an aging society, consumer fear of traveling, and stock market volatility.
External Audit
develops a finite list of opportunities that could benefit a firm and threats that should be avoided; Reveals key opportunities and threats confronting an organization so that managers can formulate strategies to take advantage of the opportunities and avoid or reduce the impact of threats.
External Factor Evaluation Matrix (EFE)
allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information.
External Forces
can be divided into five broad categories: economic forces; social, cultural, demographic and natural environment forces; political, governmental and legal forces; technological forces; and competitive forces
Industrial Organization (I/O)
an approach to competitve advantage advocates that external industry factors are more important than internal factors in a firm for achieving competitive advantage.
Industry Analysis
a.k.a. environmental scanning or external strategic management audit focuses on identifying and evaluating trends and events beyond the control of a single firm, such as increased foreign competition, population shift to the Sunbelt, an aging society, consumer fear of traveling, and stock market volatility.
Information Technology (IT)
the technology of the production, storage, and communication of information using computers and microelectronics
Internet
changed the very nature of opportunities and threats by altering the life cycles of products, increasing the speed of distribution, creating new products and services, erasing limitations of traditional geographic markets, and changing the historical trade-off between production standardization
Lifecare Facilities
apartment complexes for the elderly, with one meal a day, transportation, and utilities included in the price of rent.
Linear Regression
based on the assumption that the future will be just like the past–which, of course, it never is.
Market Commonality
the number and significance of markets that a firm competes in with rivals
Porter’s Five-Forces Model
a widely used approach for developing strategies in many industries. According to Porter, the nature of competitiveness in a given industry can be viewed as a composite of five forces: Rivalry among competing firms; Potential entry of new competitors; Potential development of substitute products; Bargaining power of suppliers; Bargaining power of consumers
Resource Similarity
the extent to which the type and amount of a firm’s internal resources are comparative to a rival
