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Chapter 9 Flashcards

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0
Q

What is competitive advantage?

A

Operating within an attribute or set of attributes that allows an organization to out perform its rivals

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1
Q

What are the basic concepts of strategy?

A
  • Competitive advantage
  • Sustainable competitive advantage
  • Strategy
  • Strategic intent
  • Strategic management
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2
Q

What is sustainable competitive advantage?

A

A competitive advantage is difficult for competitors to imitate

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3
Q

What is a strategy?

A

A comprehensive action plan that identifies long-term direction for an organization and guides resource utilization to accomplish organizational goals with sustainable competitive advantage

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4
Q

What is strategic intent?

A

Focusing all organizational energies on a unifying and compelling goal

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5
Q

What is strategic management?

A

The process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage

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6
Q

What are the different types of environments?

A
  • Monopoly
  • Oligopoly
  • Hypercompetition
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7
Q

What is a monopoly?

A

One player, with no completion. This creates absolute competitive advantage.

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8
Q

What is an oligopoly?

A

Few players competing indirectly against each other. You will have a long-term competitive advantage in your defined market segment.

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9
Q

What is hypercompetition?

A

Several players in direct competition, and any competitive advantage is only temporary.

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10
Q

What is a mission?

A

The reason for an organization’s existence.

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11
Q

What does a good mission statement identify?

A
  • Customers
  • Location
  • Products and/or services
  • Underlying philosophy
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12
Q

How can you test the mission?

A

By how well it serves the organization’s stockholders.

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13
Q

What does SWOT stand for?

A

Strengths Weaknesses Opportunities Threats

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14
Q

What are some opportunities?

A
  • Possible new markets
  • Strong economy
  • Weak market rival
  • Emerging technologies
  • Growth of existing markets
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15
Q

What are some threats?

A
  • New competitors
  • Shortage of resources
  • Changing market tastes
  • New regulations
  • Substitute products
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16
Q

What types of strategies are used by organizations?

A
  1. Growth and Diversification
  2. Restructuring and Divestiture
  3. Global
  4. Cooperative
  5. E-Business
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17
Q

What is growth and diversification?

A

Seeking an increase in size and the expansion of current operations.

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18
Q

What are the types of growth strategies?

A

Concentration and diversification strategies.

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19
Q

What types of diversification strategies are there?

A

Related, unrelated, and vertical integration

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20
Q

What is restructuring/divestiture?

A

Readjusting operations when an organization is in trouble

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21
Q

What is retrenchment?

A

Correcting weaknesses by making changes to current operations (Liquidation, downsizing, restructuring)

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22
Q

What is a global strategy?

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A

Adopts to standard products and advertisements for the entire world

23
Q

What is a multi-domestic strategy?

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A

Products are tailored specifically to each region

24
What is a transnational strategy?
A blend of multi-domestic and global strategy. It seeks the efficiency if global while still keeping attention to local markets.
25
What is a strategic alliance (cooperative strategy)?
Organizations partner to pursue areas of mutual interest.
26
What is an e-business strategy?
Using the Internet to gain competitive advantage
27
What is a B2B strategy?
Uses web and IT to link organizations with supply chains
28
What is B2C strategy?
Using IT and web to link businesses and customers
29
What are some opportunities for competitive advantage?
- Cost and quality - Knowledge and speed - Barriers to entry - Financial resources
30
What is a barrier to entry and why is it a source of competitive advantage?
Emphasis on creating a market stronghold that is protected from others entering
31
Why are financial resources a source of competitive advantage?
Investment and/or loss sustainment that competitors can't match
32
Business-level strategic decisions are driven by...
Market scope and source of competitive advantage
33
What is the BCG Matrix?
It ties strategy formulation to analysis of business opportunities according to industry/market growth rate (low vs. high) and market share (low vs. high)
34
What are above-average returns?
Exceed what could be earned by investing in different things of equivalent risk
35
What are operating objectives?
Specific results that an organization tries to accomplish (profit, quality, social responsibility)
36
What are some macro environment factors?
Technology, government, global economy
37
What is the industry environment?
Suppliers, competitors, customers
38
What are the forces of industry competition?
1. Industry competitors 2. New entrants 3. Suppliers 4. Customers 5. Threats of substitute products
39
What are the three levels of strategy?
1. Corporate (highest) 2. Business 3. Functional (lowest)
40
What does the corporate level of strategy do?
Long-term direction for entire enterprise
41
What does the business level of strategy do?
Identifies how well a single product line will do
42
What does the functional level of strategy do?
Guides activities within one specific part of operations
43
What is a strategic business strategy?
A major business area that operates with some autonomy
44
What are Porter's four generic strategies?
1. Differentiation 2. Cost leadership 3. Focused differentiation 4. Focused cost leadership
45
What is cost leadership?
Minimizing costs to be more efficient
46
What is portfolio planning?
Seeking the best mix of investments among alternative business alternatives
47
What are Miles & Snow's adaptive strategies?
1. Prospector 2. Defender 3. Analyzer 4. Reactor
48
What does a prospector do?
Pursues new innovations with risk but also prospects for growth
49
What does a defender do?
Protects current market share by emphasizing existing products without seeking growth
50
What does an analyzer do?
Maintains core stability while exploring choice opportunities for change
51
What does a reactor do?
Changes as a last resort only to survive
52
What is an emergent strategy?
A strategy that develops over time as managers learn from and respond to experience
53
What are two strategy implementation hindrances?
a) Failures of substance | b) Failures of process
54
What is a failure of substance?
Inadequate attention to major strategic planning elements
55
What is a failure of process?
The ways that the different parts were completed was done badly
56
What is strategic leadership?
Inspires people to continually improve strategies and their implementation

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