General Flashcards
(30 cards)
Two models to help develop mission & vision when choosing strategies are…
- I/O model
- Resource based model
4 steps of environmental analysis are…
- Scanning
- Monitoring
- Forecasting
- Assessing
The external environment consists out of…
- General environment
- Industry environment
- Competitive environment
Four levels of strategy are…
- Business-level
- Competitive
- Corporate
- International
Industry analysis can be done by analysing…
The five forces model
- Threat of entrants
- Bargaining power of suppliers
- Bargaining power of buyers
- Product substitutes
- Intensity of rivalry among competitors
Possible barriers to entry are…
- Economies of scale
- Product differentiation
- Capital requirements
- Switching costs
- Access to distribution channels
- Cost disadvantages
- Government policies
Factors that (positively) influence rivalry intensity are…
- Numerous competitors
- Slow industry growth
- High fixed costs
- Lack of differentiation
- Low switching costs
- High strategic stakes
- High exit barriers
Four dimensions of competitor analysis are…
- Future objectives
- Current strategy
- Assumptions
- Strengths and weaknesses
The general environment consists of the following segments…
- demographic
- economic
- political/legal
- sociocultural
- technological
- global
- sustainable/physical
The components of internal analysis are…
- Resources
- Capabilities
- Core competencies
What are the factors that decide whether a capability is a core competence?
- Valuable?
- Rare?
- Costly to imitate?
- Non-substitutable?
An alternative to the VRIO model to identify core competencies
Value chain analysis
Define business-level strategy
An integrated and coordinated set of commitments and actions the firm uses to gain competitive advantage.
Name the five business-level strategies
- Cost-leadership
- Differentiation
- Focused cost-leadership
- Focused differentiation
- Integrated cost-leadership/differentiation
Competitors can be analysed on two factors…
- Market commonality
- Resource similarity
Levels of diversification from low to high
- Single business
- Dominant business
- Related constrained
- Related linked
- Unrelated
Incentives to diversify
- Antitrust regulation
- Low performance
- Uncertain future cashflows
- Synergy
- Reduction of firm risk
Reasons for acquisitions
- Increased market power
- Overcoming entry barriers
- Increased speed to market
- Lower development risk for new products
- Increased diversification
- Reshaping competitive scope
- Learning and developing new capabilities
Problems in acquisitions
- Integration difficulties
- Inadequate valuation of target
- Large debt
- Inability to achieve synergy
- Over-diversification
- Overly focused on acquisition
- Too large
Three types of buyouts are…
- management buyouts (MBO)
- employee buyouts (EBO)
- Whole-firm LBO
Three basic benefits of international strategy
- Increased market size
- Economies of scale and learning effects
- Location advantages
Incentives for international strategy
- Extending product’s life-cycle
- Easier access to raw materials
- Integrating operations on a global scale
- Better use of rapidly developing technologies
- Access to consumers in developing markets
Determinants of national advantage
- Factors of production
- Demand conditions
- Related and supporting industries
- Patterns of firm strategy, structure and rivalry
Three types of international corporate-level strategy
- Multidomestic strategy (decentralised)
- Global strategy (centralised)
- Transnational strategy (combination)
