EXAM 3 STUDY CARDS Flashcards
STUDY GUIDE QUESTIONS (32 cards)
What is strategy?
A long-term plan for achieving goals
Formulation & Implementation
Formulation: Deciding what to do
Implementation: Performing activities necessary to do what is planned
Difference between corporate and business strategy
Corporate:
Business: Ways a firm goes about achieving objectives
Cost-leadership and differentiation strategy
Cost-leadership: Firms that use this strategy seek to make their P&S at the lowest cost compared to their competitor while maintaining quality.
Differentiation: Set of actions designed to produce/deliver goods or services that customers perceive differently that benefit them.
International Strategy
Using corporate strategy to guide choices of which markets a firm competes in
Importing, Outsourcing, and Offshoring
Importing: Sale of P&S in one country that are sourced in another country
Outsourcing: Contracting with third parties to do some of a company’s work on its behalf
Offshoring: Taking some business function out of the company’s country origin to perform in another
Vision and Mission statements / Organizational Values
Vision: Future-oriented declaration of an organization’s purpose and aspirations
Mission: Statement of purpose that describes who the company is and what it does
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Difference between global, multi-domestic, and transnational strategy
Global: Home office centralizes & controls decision-making authorities
Multi-Domestic: Maximizes local responsiveness by giving decision-making authority to local businesses to create P&S optimizes to their local market
Transnational: Combines firm-wide operating efficiencies and core competencies with local responsiveness tailored to difference countries
What are the 5 KEY elements of the strategy diamond?
Arenas
Differentiators
Vehicles
Staging
Economic Logic
What is entrepreneurship?
Recognition of opportunities and the use of creation of resources
Entrepreneurship Process
- Identify Opportunities
- Plan and prepare, and venture
- Resource the venture and take action
Truths & Myths about entrepreneurship
Truths:
- Work hard & are driven
- See cup half full
- Strive for integrity
- Burn with competitive desire to win
- Dissatisfied with the status quo and seek opportunities
- Use failure as a learning tool
- Believe they can make a difference
Myths:
- They are born, not made
- Make more money
- Being original is essential
- It takes a lot of money
- Must be risk takers
Difference between entrepreneurship and intrapreneurship
Entrepreneurship: Recognizes opportunities
Intrapreneurship: Takes place in a business that already exists
Social Entrepreneurship
Born-global Firms
(Global Start-Up) is an organization that seeks significant competitive advantage from the use of resources of and sales of outputs in multiple countries
Difference between Angel Investor and Venture Capitalist
Types of Planning
Strategic: Long-range planning typically 3 years or more setting a plan to compete effectively
Tactical: 1 to 3 years and specifies fairly concrete ways to implement a plan
Operational: Short-range planning that takes organizational-wide strategic & tactical plans and specifies concrete action steps to achieve those plans
POLC Framework
Planning
Organizing
Leading
Controlling
Research and Development (R&D) - Why is it important?
Research identifies new knowledge and ideas and development turns those ideas into tangible products or processes
What is involved in innovation?
Process innovation and open innovation
Process Innovation: Implementing a new or significantly improved process
Open Innovation: Generates new business ideas through employee input beyond a company’s R&D
Components of Intellectual Property
Patents
Trademarks
Trade Secrets
Copyrights
Licensing
Identify examples of: Patents, trademarks, trade secrets, copyrights, and licensing
