Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

MGMT 485W > MGMT 485W: Chapter 2 > Flashcards

MGMT 485W: Chapter 2 Flashcards

(67 cards)

Start Studying
1
Q

External Environment ABBREV

A

GIC

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

External Environment

A

General Environment
Industry Environment
Competitor Analysis

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

General Environment

A

Composed of dimensions in the broader section that influence an industry and the firms within it

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

General Environment ABBREV

A

DEPSTGP

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

General Environment

A 
Demographic
Economic
Political/Legal
Sociocultural
Technological
Global
Physical
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Can firms control the general environment?

A

No, but can use it as information

focus on environmental trends

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

Industry Environment

A

the set of factors that directly influences a firm and its competitive actions and responses

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

What are the five factors of industry Environment ABBREV

A

NSBPR

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

Five Factors of Industry Environment

A
  • The threat of new entrants
  • The power of suppliers
  • The power of buyers
  • The threat of product substitutes
  • The Intensity of rivalry among competitors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Firms challenge is to

A

locate a position within an industry where it can favorable influence the five factors or where it can successfully defend against their influence

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

the better the firm can influence the industry environment,

A

the greater the likelihood of greater returns

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

Competitor Environment ABBREV

A

CIOF

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

Competitor Environment

A
  • Competitor Analysis
  • Information about each competitor
  • One on one competition
  • Focused on predicting competitors’ actions, responses, and intensions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Competitor Analysis

A

how companies gather and interpret information about their competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

External Environment Analysis ABBREV

A

OTT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

External Environment Analysis

A

Opportunity
Threat
Techniques

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Opportunity

A

a condition in the general environment that, if exploited effectively, helps a company achieve strategic competitiveness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Threat

A

a condition in the general environment that may hinder a company’s efforts to achieve strategic competitiveness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Techniques ABBREV

A

SMFA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Techniques

A

Scanning
Monitory
Forecasting
Assessing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Scanning

A

Identifying early signals of environmental changes and trends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Monitory

A

analysts observe environmental changes to see if an important trend is emerging from among those spotted through scanning

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Forecasting

A

analysts develop feasible projections of what might happen, and how quickly, as a result of the changes and trends detected through scanning and monitoring

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Assessing

A

determining the timing and importance of environmental changes and trends for firms’ strategies and their management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
General Environment ABBREV
DPSTGP
26
General Environment
``` Demographic Segment Political/Legal Segment Sociocultural Segment Technological Segment Global Segment ```
27
Demographic Segment definition
concerned with a population's size, age structure, geographic distribution, ethnic mix, and income distribution
28
Demographic Segment ABBREV
PAGEIE
29
Demographic Segment
``` Population size Age Structure Geographic Distribution Ethnic Mix Income Distribution Economic Segment ```
30
Political/Legal Segment
the arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local government agencies
31
Sociocultural Segment
concerned with a society's attitudes and cultural values
32
Technological Segment
Includes the institutions and activities involved in creating new knowledge and translating that knowledge into new outputs, products processes, and materials
33
Global segment
includes relevant new global markets, existing markets that are changing, important international political events, and critical cultural and institutional characteristics of global markets
34
Physical Environment Segment
refers to potential and actual changes in the physical environment and business practices that are intended to positively respond to and deal with those changes
35
Industry Environment ABBREV
TBBTI
36
Industry Environment
``` Threats of New Entrants Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitute Products Intensity of Rivalry among Competitors ```
37
The likelihood that firms will enter an industry is a function of two factors
Barriers to entry | Retaliation expected from current industry participants
38
Barriers to Entry ABBREV
EPCSACG
39
Barriers to Entry
- Economies of Scale - Product Differentiation - Capital Requirements - Switching Costs - Access to Distribution Channels - Cost Disadvantage independent of scale - Government Policy
40
Economies of Scale
cost of producing each unit declines as the quantity of a product produced during a given period increases
41
Product differentiation
a firm's product is unique, customer loyalty
42
Capital Requirements
requires firm to have resources to invest
43
Switching Costs
one-time costs customers incur when they buy from a different supplier
44
Access to Distribution channels
new entrants have to persuade distributions to carry their products
45
Cost Disadvantages independent of scale
established competitors have cost advantages that new entrants cannot duplicate
46
Government Policy
Government can control entry to an industry through licensing and permit requirements
47
Retaliation expected from current industry participants
companies seeking to enter an industry also anticipate the reactions of firms in the industry
48
Bargaining Power of Suppliers
increasing prices and reducing the quality of their products are potential means suppliers use to exert power over firms competing with an industry
49
A supplier is powerful when ABBRE
DSISC
50
A supplier is powerful when
- dominated by a few large companies and is more concentrated - satisfactory substitute products are not available - Industry firms are not significant customer - Supplier's goods are critical to buyers' marketplace success - Created high switching costs
51
Bargaining Power of Buyers
to reduce costs, buyers bargain for higher quality, greater levels of service, and lower prices
52
Buyer Groups are powerful when ABBREV.
PSCI
53
Buyer Groups are powerful when
- They purchase a large portion of a total output - The sales of the product being purchased account for a significant portion of the seller’s annual revenues - They could switch to another product - The industry’s products are undifferentiated or standardized, and the buyers pose a credible threat if they were to integrate backward into the sellers’ industry
54
Threat of Substitute Products
goods or services from outside a given industry that perform similar or the same function as a product that the industry produces
55
How does substitute products a threat?
customers face few switching costs, the substitute product's price is lower or its quality and performance capabilities are equal to or greater than those of the competing product
56
Intensity of Rival among Competitors ABBREV
NSHLHHCC
57
Intensity of Rival among Competitors
- Numerous of Equally balanced competitors - Slow industry Growth - High Fixed costs or storage costs - Lack of differentiation or low switching costs - High Strategic Stakes - High Exit Barriers - Competitor Diversity - Capacity in Big Increments
58
Numerous of Equally balanced competitors
With multiple competitors, it is common for a few firms to believe they can act without eliciting a response
59
Rivalry in no-growth or slow-growth markets becomes more intense
more intense as firms battle to increase their market shares by attracting competitors’ customers
60
When fixed costs account for a large part of total costs
companies try to maximize the use of their productive capacity
61
When buyers find a differentiated product that satisfies their needs
they frequently purchase the product loyally over time.
62
Competitive rivalry is likely to be high when
it is important for several of the competitors to perform well in the market
63
High Exit Barrier
Sometimes companies continue competing in an industry even though the returns on their invested capital are low or negative, likely face high exit barriers.
64
Strategic groups definition
A set of firms that emphasize strategic dimensions and use similar strategy
65
Interpreting Industry Analysis
Competitor Analysis Answers Consolidate
66
Competitor Analysis ABBREV
FCAC
67
Competitor Analysis
- Future Objectives - Current Strategy - Assumptions - Capabilities

MGMT 485W (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions