Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

MGMT 466 > Chapter 4: Business Level Strategy > Flashcards

Chapter 4: Business Level Strategy Flashcards

(66 cards)

Start Studying
1
Q

customers: relationship w/ BLS:

A

satisfy customers w/ BLS: returns from relationship w/ customers = life blood of all organizations

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

determine 3 things when selecting BLS

A
  1. who (target group)
  2. what (needs)
  3. how (CCs)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

market segmentation

A
  • customer markets
  • industrial markets
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

market segmentation: 6 customer markets

A
  1. demographic
  2. socioeconomic
  3. geographic
  4. psychological
  5. consumption patterns
  6. perceptual
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

mkt segmentation: customer mkts: demographic

A

age, income, sex, etc.

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

mkt segmentation: customer mkts: socioeconomic

A

social class, stage in family cycle

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

mkt segmentation: customer mkts: geographic

A

cultural, regional, national

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

mkt segmentation: customer mkts: psychological

A

lifestyle, personality traits

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

mkt segmentation: customer mkts: consumption patterns

A

heavy, moderate, light users

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

mkt segmentation: customer mkts: perceptual factors

A

benefit segmentation, perceptual mapping

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

mkt segmentation: 5 industrial markets

A
  1. end-use
  2. product
  3. geographic
  4. common buyer factor
  5. customer size
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

mkt segmentation: industrial markets: end-use

A

identified by SIC code

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

mkt segmentation: industrial markets: product

A

based on tech change of production economics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

mkt segmentation: industrial markets: geographic

A

country boundaries or regional differences w/in

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

mkt segmentation: industrial markets: common buyer factor

A

cut across product market & geographic segment

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

who

A

determining the customer to serve

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

What:

A

determining which customers needs to satisfy -> needs related to benefits/features of product

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

how:

A

determining core competencies necessary to satisfy customer needs -> CCs to implement value creating strategies => satisfy needs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What: customers needs/desires have been changing

A
  1. desire experience > simply purchasing G/S
  2. prefer customized G/S
  3. demand fast service
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

How (CCs) emphasize _____

A

innovation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

purpose of BLS

A
  • to create differences between the firm’s position and those of its competitors (position differently)
  • develop activity maps to show how they integrate activities they perform (fit among activities = key to sustain. comp. adv.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

assess 2 types of advantages (from internal assets’ nature/quality) => basis for apply BLS

A
  1. cost comp. adv.
  2. distinctiveness comp. adv.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

2 types of market segments

A
  1. broad (industry-wide) -> larger & comprehensive
  2. narrow-> special needs and/or in specific region
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Basis for customer value

A

see notes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
cost leadership strategy
- targets broad customer segment/group - effective use allows above avg returns despite strong comp. forces - sell stdized G/S to most typical customers - process innovation - emergine markets - logistics - value chain
26
examples of value creating activities associated with cost leadership strategy: Finance
manage finc resources to ensure +CF & low debt costs
27
examples of value-creating activities associated with cost leadership strategy: HR
develop policies to ensure sufficient hiring/retention to keep costs low & implement training to ensure high e'ee efficiency
28
examples of value-creating activities associated with cost leadership strategy: MIS
develop/maintain cost-effective MIS operations
29
examples of value-creating activities associated with cost leadership strategy: SCMT
effective relationships w/ suppliers to maintain efficient flow of goods (supplies) for operations
30
examples of value-creating activities associated with cost leadership strategy: operations
- build economies of scale & efficient ops (ie production processes)
31
examples of value-creating activities associated with cost leadership strategy: distribution
use low-cost modes of transport & delivery times
32
examples of value-creating activities associated with cost leadership strategy: MKTG
targeted advertising & low prices for high sales volumes
33
examples of value-creating activities associated with cost leadership strategy: follow-up service
efficient follow up to reduce return
34
cost leadership: rivalry with existing competitors
- hesistate to compete on $ basis - factors: size of rival, mkt dependence, location/prior competitive interactions - reduce via joint ventures & guanxi
35
cost leadership: bargaining power of buyers (customers)
- cant force below comp or regain power & incr $ - pressure innovative products - counterbalance w/ part.
36
cost leadership: bargaining power of suppliers
- higher margins -\> can absorb $ incrs - some hold down supplier $ - incr w/ outsourcing
37
cost leadership: potential entrants
highly efficient (economies of scale)
38
cost leadership: substitutes
flexibility: decr $ / incr diff w/o changing $
39
competitive risks of the cost leadership strategy
1. processes -\> obsolete 2. too much focus on decr costs 3. imitation
40
differentiation
- nonstand./dist -\> (unique needs) premium $ (value\>cost @ comp. lvls) - product innovation = critical to success - apply its knowledge capital - offer a portfolio of products that complement each other - less similar =\> more buffered from rivals
41
differentiation strategy: effective when firm has thorough understanding of:
1. what customers value 2. relative importance they attech to satisfaction 3. for what they are willing to pay a premium
42
6 ways to differentiate
1. features 2. customer service 3. prestige/status 4. diff. tastes 5. design/pref. 6. innov./lead
43
differentiation: rivalry
incr loyalty =\> decr $ sensitivity
44
differentiation: buyer power
distinct =\> decr. $ sensitivity (no alternatives)
45
differentiation: supplier power
- high quality (bc premium) =\> incr costs - high margin -\> ~insulates % - pass on to customer - incr w/ outsourcing
46
differentiation: entrants - 2 barriers
1. loyalty 2. need to overcome uniqueness
47
differentiation: substitutes
- brand name =\> loyalty
48
competitive risks of the differentiation strategy
1. $ change too large (features\>needs; recession (luxury goods suffer)) 2. stop providing value (dont see diff.) 3. generic experience \> feature's $ 4. counterfeiting
49
examples of value creating activities assoiciated wth the differentiation strategy: finance
- lt investment (i.e. R&D)
50
examples of value creating activities assoiciated wth the differentiation strategy: HR
- high skilled e'ees w? latest training
51
examples of value creating activities assoiciated wth the differentiation strategy: MIS
- real-time info
52
examples of value creating activities assoiciated wth the differentiation strategy: SCMT
- high quality supplies
53
examples of value creating activities assoiciated wth the differentiation strategy: ops
- high-quality goods & flexibile =\> change w/ demands
54
examples of value creating activities assoiciated wth the differentiation strategy: dist
- accurate/timely
55
examples of value creating activities assoiciated wth the differentiation strategy: MKTG
- promotion & ads
56
examples of value creating activities assoiciated wth the differentiation strategy: follow-up service
- ensure satisfaction
57
focus strategies
- CCs to serve needs of particular niche
58
focus strategies: 3 specific target segments
1. partiular buyer group 2. different segment of product line 3. different geographic market
59
focus strategies: serve
serve more efficiently than broad (industry) =\> entrepreneur firms ("below radar") =\> not served or served poorly
60
example: ikea
focused cost leadership strategy
61
example: food trucks - green trucks in LA
focused differentiation strategy
62
difference between focus CL and focus D
competitive scope - industry forces often favor one over the other (CL v. D)
63
Competitive risks of focus strategies
1-3) general 4) "out-focus" - ikea 5) industry -\> enter 6) unique needs -\>(change) industry (similar)
64
integrated cost leadership/differentiation strategy
- simultaneous concentration =\> incr flexibility - adapt quickly & strong networks
65
integrated CL/D: 3 sources of flexibility to balance objectives of both strategies
1. flexible manufacturing systems (FMS) -\> eliminate cost-variety tradeoff 2. info. networks - customer relationship management (CRM) -\> understand customer (predict willingness exp) 3. total quality mgmt systems (TQM) -\> incr satisfaction, decr costs, decr time to intro product
66
competitive risks of the integrated cost leadership/differentiation strategy:
1. difficult to perform 2. "stuck in the middle" - not optimal or dont successfully implement either (CL or D) 3. costly to pursue 4. alliances for diff but may extract $s 5. "pure" outperform "hybrid"

MGMT 466 (12 decks)

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