Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

markets, marketing and management > Lecture 2 > Flashcards

Lecture 2 Flashcards

1
Q

What are examples of context when looking at strategy?

A

What future and emerging opportunities can we exploit? What risks do we face?

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

What are examples of context when looking at sales?

A

What are our competitors doing? Does this pose a risk?

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

What is an example of context when looking at marketing?

A

What issues do consumers care about and how can we communicate with them?

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

What is an example of context when looking at Human Resources?

A

What are pay and working conditions like at our competitors?

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

What is an example of context when looking at Operations?

A

How are politics and economics affecting supply chains?

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

What context is there for the compliance (industry dynamics perspective)?

A

Industries are complex systems and difficult for one firm to change system.
Industries evolve. Role of a firm is to anticipate these changes and position themselves in the changing market.
Success comes from adapting to the changed environment.
Firm profitability is largely industry-dependent.

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

What context is there for the choice (industry leadership perspective)?

A

Industries are complex systems and some elements cannot be changed but many can be.
Innovative firms can envisage a new industry and have operation and marketing capability to realise it.
Success comes from innovating and changing the environment.
Firm profitability is largely firm-dependent.

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

How to attitudes differ across countries/cultures?

A

Psychological differences: different cultures may perceive their ‘locus of control’ differently

Institutional differences: different nations may perceive the role of the states differently. Should governments intervene to enable industry development?

Organisational perspective differences: in some countries, companies tend to work in complex networks and relationships while in others they prefer to retain their independence

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

What does P stand for in PEST analysis?

A

Political -
- Nature of political systems
- Influence of factions
- Balance of power
- Government policy
- Legal systems

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

What does E stand for in PEST analysis?

A

Economic -
- Currency Volatility
- Economic structure
- Growth prospects
- Disposable incomes

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

What does S stand for in PEST analysis?

A

Socio-Cultural -
- Cultural values
- Demographics
-Ethics
- Environmental
- Skills and Education

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What does T stand for in PEST analysis?

A

Technological -
- New technology impact
- Access to infrastructure
- Transport
-Communications

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

PEST analysis - What influence does the state have on politics?

A

The state:
1. Sets laws and regulations
2. Influences personal consumption (e.g. taxation rates)
3. Influences direction (e.g. farm policy/industrial policy)
4. Influences relations with other states (e.g. trading arrangements)

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

PEST analysis - What are other groups that affect politics?

A
  1. Supranational and international organisations
  2. Civil society organisations (e.g. political lobbyists/Trade unions)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

PEST analysis - What are influences on economics?

A
  1. Varieties of capitalism – liberal market and coordinated market economies
  2. Economic cycles – Contraction and expansion
  3. Exchange rates
  4. Interest rates
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

PEST analysis - What are social influences?

A
  1. Demographics
  2. Distribution of income (Income inequality/ poverty)
  3. Culture and norms for behaviour:
    - Ethics
    - Environmental issues
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

PEST analysis - What are influences on technology?

A
  1. Technology cycles
  2. Technology uses:
    - As a source of competitive advantage
    - As a source of coordination and control
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the critiques of macro analysis?

A
  1. Static
  2. Expensive (time and money)
  3. How relevant is the information
  4. How useful are lists?
  5. Deterministic – organisations have some control
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

PEST analysis - What are the sources of information for PEST analysis?

A
  1. Agencies
  2. Internally generated information
14
Q

What are the factors that make the global economy?

A

Cultural - Homogeneous global culture at the expense of local tradition. E.g. ‘Mc Donaldisation’
Economic - Increased interdependence of national economies, and greater integration of goods, labour and capital markets
Geographical - Compressed time and space and rapid exchange of information. The ‘end of geography’.
Institutions - ‘Universal’ institutional arrangements promoted by IMF, WB and
WTO.
Politics - Relationship btw power of the market and firms vs. nation-states. Risk of race-to-the-bottom for corporate tax rate, labour and environmental regulation.

15
Q

How does International trade make the economy integrated?

A
  1. In final goods (export and import)
    - We consume goods produced in other countries
    - We produce goods that are consumed in other countries
  2. In intermediate goods (global value chains)
    - We produce goods that use intermediate inputs imported from other counties
    - Goods produced abroad use intermediate inputs that we produce
16
Q

How does International movement of capital make the economy integrated?

A
  1. Foreign Direct Investment/Multinational Enterprises (FDI & MNEs)
    - Our companies produce and sell abroad
    - Foreign-owned companies produce and sell in our countries
  2. International portfolio investments
    - We own financial assets (shares of companies, treasury bonds…) abroad
    - Foreigners own financial assets in our country
17
Q

What is the final factor that makes the world economy integrated?

A

International mobility of people (migration/tourism)

18
Q

Why does geographical proximity matter in terms of trade?

A
  • Trade and communication costs
  • Uncertainty and lack of familiarity
  • Cultural and institutional affinity
19
Q

What is a “global” firm (MNE’s)?

A

A “global” firm has 20% or more of its sales in each region of the broad triad – 9 MNEs

20
Q

What is a “home region” firm (MNE’s)?

A

A “home region” firm has 50%+ of its sales in its home region of the broad triad – 320 MNEs

21
Q

What is an industry?

A

An industry is a group of firms producing products and services that are essentially the same (Porter, 1980).
An industry serves a market.

22
Q

What is a market?

A
  1. A group of customers for specific products or services that are essentially the same (Whittington et al, 2020, p63)
  2. A place (Physical/Virtual) where individuals and groups exchange goods and services
  3. A geographical area of commercial activity, e.g. potential demand for a product/service within a geographic area or demographic
23
Q

What are market characteristics?

A
  1. A geographic area
  2. A commodity/service
  3. A demographic group
  4. Potential demand
24
Q

What is customer value?

A

Perceived benefits - perceived sacrifice

25
Q

How can customers be categorised in a market?

A
  1. Age
  2. Sex
  3. Behaviour
    - Lifestyle
    - Reason for buying
26
Q

What are the characteristics of B2C businesses?

A
  1. Single-step sale with occasional and repeat purchases
  2. One to many marketing
  3. Standardised contacts - Caveat emptor, implicit terms, state enforcement such as consumer legislation
  4. Low costs to the buyer
27
Q

What are the characteristics of B2B businesses?

A
  1. Business transactions
    - Added complexity
    - Limited statutory Rules
    - Negotiation
    - Professional purchasing staff
    - Formalised processes with budget and fraud control
    - Significant buyer costs
28
Q

Industry types - What characteristics does a Monopoly have?

A
  1. One firm
  2. Unique product/service
  3. very high entry barrier
  4. Very low competitive 5 forces
29
Q

Industry types - What characteristics does an Oligopoly have?

A
  1. Few competitors
  2. Some product/service differences
  3. High entry barriers
  4. The influence of competitive 5 forces varies
30
Q

Industry types - What characteristics does Perfect competition have?

A
  1. Many competitors
  2. Very similar products/services
  3. Low barriers of entry
  4. Competitive 5 forces very influential
31
Q

Industry analysis - What are customers?

A

People/firms to whom you sell, may use a product or service or sell it to someone else

32
Q

Industry analysis - What are suppliers?

A

The people/firms whom you sell to, usually provide money for product/service. Could be paying for goods/parts, labour, or services.

33
Q

Industry analysis - What are competitors?

A

Those who want to sell the same product/service to the same customers or Those who sell different products/services to the same customers or different customers via same distribution channels

34
Q

What is the SCP framework?

A

Structure, Conduct, Performance

35
Q

Porter’s five forces - What are the different forces?

A

Power of suppliers, buyers, threat of substitutes, competitive rivalry and potential entrants

36
Q

Porter’s five forces - What are the considerations of competitive rivalry?

A
  • What is the competitor concentration and balance?
  • What are industry growth rates?
  • What is the cost structure? Are there high fixed costs?
  • How easy is it to exit the industry?
  • How differentiated are the products in the industry?
37
Q

Porter’s five forces - What are the considerations of the power of buyers?

A
  • How many buyers are there?
  • How easy is it for the buyer to switch to another supplier?
  • Does the buyer have the capability to make the product themselves?
38
Q

Porter’s five forces - What are the considerations of the power of suppliers?

A
  • How many suppliers are there?
  • How easy is it for the buyer to switch to another supplier?
  • Does the supplier have the capability to make the product themselves?
  • How differentiated are the products/ services?
39
Q

Porter’s five forces - What are the considerations of the threat of new entrants?

A
  • How much capital is required to compete?
  • How important are economies of scale?
  • How easy is it to access supply and distribution channels?
  • Is there legislation which makes it difficult to join the industry?
  • Will incumbents react to the threat?
40
Q

Porter’s five forces - What are the considerations of the threat of substitutes?

A
  • What products from other industries could compete with those in our industry?
  • Are substitute products cheaper or offer better performance?
41
Q

Porter’s five forces - What are the considerations of Porter’s five forces?

A
  • How do we define the market/ industry?
  • Threats v opportunities?
  • How do we define the scope of the organisation?
  • What about changes to industry structure over time?

markets, marketing and management (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions