Chapter 6

Question 1

Resources

Answer 1

Assets, capabilities, processes, employee time, information, and knowledge that an organization controls.

Question 2

Competitive advantage

Answer 2

Using resources to provide greater value for customers than competitors can

Question 3

Sustainable competitive advantage

Answer 3

When other companies cannot duplicate the value a firm is providing to customers

Question 4

Valuable resources

Answer 4

Allow companies to improve their efficiency and effectiveness

Question 5

Rare resources

Answer 5

Resources that are not controlled or possessed by many competing firms

Question 6

Imperfectly limitable resources

Answer 6

Resources that are impossible or extremely costly or difficult to duplicate

Question 7

Nonsubstitutable resources

Answer 7

No other resources can replace them and produce similar value or competitive advantage

Question 8

Competitive inertia

Answer 8

A reluctance to change strategies or competitive practices that have been successful in the past

Question 9

Strategic dissonance

Answer 9

Discrepancy between a company’s intended strategy and the actions managers take when actually implementing that strategy

Question 10

Situational analysis (SWOT)

Answer 10

Strengths, weaknesses,opportunities, and threats assessment in an organization internal environment and the opportunities and threats in external environment

Question 11

Distinctive competence

Answer 11

Company that can make do or perform better than its competitors

Question 12

Shadow strategy task force

Answer 12

Company actively seeking out its own weaknesses and then thinking like it’s competitors trying to determine how they can be exploited for competitive advantage

Question 13

Core capabilities

Answer 13

Less visible internal decision making routine, problem solving process and organizational cultures that determine how efficiently inputs can be turned into outputs

Question 14

Strategic group

Answer 14

Group of other companies within an industry against which top managers compare evaluate and benchmark their company’s strategic threats and opportunities

Question 15

Core firms

Answer 15

Central companies in a strategic group

Question 16

Secondary firms

Answer 16

Firms that use strategies related to but somewhat different from those of core firms

Question 17

Strategic reference points

Answer 17

Targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage

Question 18

Corporate level strategy

Answer 18

Overall organizational strategy that addresses the question

Question 19

Diversification

Answer 19

Owning stocks in a variety of companies in different industries

Question 20

Portfolio strategy

Answer 20

Corporate level strategy that minimizes risk by diversifying investment among various businesses or lines

Question 21

Acquisitions

Answer 21

Other companies to buy

Question 22

Unrelated diversification

Answer 22

Creating or squaring companies in completely unrelated business

Question 23

BCG Matrix

Answer 23

Portfolio strategy that managers use to categorize their corporations businesses by growth rate and relative market share which helps decide how to invest corporate funds

Question 24

Stars

Answer 24

Are companies that have a large share of fast growing market

Question 25

Question marks

Answer 25

Are companies that have a small share of a fast growing market

Question 26

Cash cows

Answer 26

Companies that have a large share of a slow growing market

Question 27

Dogs

Answer 27

Companies that have a small share of a slow growing market often not profitable

Question 28

Grand strategy

Answer 28

Broad strategic plan used to help an organization achieve its strategic goals

Question 29

Growth strategy

Answer 29

To increase profits, revenues,market share, or the number of places in which the company does business

Question 30

Stability strategy

Answer 30

Continue doing what they have been doing just doing it better

Question 31

Grand strategy

Answer 31

A broad corporate level strategic plan used to achieve strategic goals and guide

Question 32

Stability Strategy

Answer 32

A strategy that focuses on improving the way in which company sells the same products or services to the same customers

Question 33

Retrenchment strategy

Answer 33

A strategy that focuses on turning around very company performance by shrinking the size or scope of the business - making cost reductions by laying off employees close performing stores, offices,or manufacturing plants - by closing or selling entire lines of products or services

Question 34

Recovery

Answer 34

The strategic actions taken after retrenchment to return to a strategy

Question 35

Industry level strategy

Answer 35

A corporate strategy that addresses the question “How should we compete in this industry”

Question 36

Character of rivalry

Answer 36

A measure of the intensity of competitive be between companies in an industry

Question 37

Purpose

Answer 37

To protect your company from the negative effects of industry competition and to create a sustainable competitive advantage

Question 38

Cost leadership

Answer 38

Producing a product or service of acceptable quality consistently lower production cost than competitors can , so that the offer the product or service at the lowest price in the industry

Question 39

Differentiation

Answer 39

Providing a product or service that is sufficiently different competitors offerings that customers are willing to pay a premium product

Question 40

Focus strategy

Answer 40

Using cost leadership or differentiation to produce a specialized product or service for a limited specially targeted group of customers in a particular geographic region or market segment

Question 41

Adaptive strategies To chose an industry level strategy that is best suited to change an organizations external environment Defenders?

Answer 41

Companies using an adaptive strategy

Question 42

Prospectors

Answer 42

Companies using an adaptive strategy that seeks fast growth Searching for new market opportunities Encouraging risk takers Being the first to bring innovative new products to market

Question 43

Reactors

Answer 43

Do not follow a consistent

Question 44

Firm level strategy

Answer 44

A corporate strategy that addresses the question should we compete against a firm

Question 45

Direct competition

Answer 45

Rivalry between two companies that offer similar products or services ,acknowledge each other as rivals and act on each others market place

Question 46

Market commonality

Answer 46

The degreee to which two companies have of products services or customers in multiple markets

Question 47

Resource similarity

Answer 47

The extent to which a competitor has a similar and kinds of resources

Question 48

Attack

Answer 48

A competitive move designed to reduce a rivals market share | A full attack strategy can provoke harsh retaliatory responses

Question 49

Response

Answer 49

A counter move prompted by a rivals attack or improve a company’s market share or profit Match or mirror competitors move