midterms Flashcards
(62 cards)
1
Q
essential for successful strategy formulation
A
Competitive Forces
2
Q
Identifying rival firms through:
A
- Strengths
- Weaknesses
- Capabilities
- Opportunities
- Threats
- Objectives
- Strategies
3
Q
7 characteristics of competitive u.s. firms
A
- Market share matters
- Understand what business you are in
- Broke or not, fix it
- Innovate or evaporate
- Acquisition is essential to growth
- People make a difference
- No substitute for quality
4
Q
Porter’s 5 forces model
A
- Potential development of substitute products
- Rivalry among competing firms
- Bargaining power of consumers
- Potential entry of new competitors
- Bargaining power of suppliers
5
Q
International Challenge faced by U.S. firms
A
- How to gain and maintain exports to other nations
- How to defend domestic markets against imported goods
6
Q
What does EFE mean?
A
External Factor Evaluate
7
Q
What does EFE evaluate? (9)
A
- Economic
- Social
- Cultural
- Demographic
- Political
- Environmental
- Governmental
- Technological
- Competitive
8
Q
5 step process of EFE
A
- List Key external factors
- Assign weight to each
- Assign 1-4 rating to each factor
- Multiply each factor’s weight by its rating
9
Q
Identifies firm’s major competitors and their strengths and weaknesses in relation to a sample firm’s strategic position
A
Competitive Profile Matrix
10
Q
Strategy Hierachies (3)
A
- Corporate Strategy
- Business unit strategy
- Functional strategy
11
Q
Types of corporate strategy
A
- growth strategy
- stability strategy
- retrenchment strategy
12
Q
Types of business unit strategy
A
- cost leadership
- differentiation
- focus
- mixed
13
Q
Top level management formulate for overall organization
A
Corporate strategy
14
Q
Types of growth strategy
A
- internal growth
- conglomerate diversification
- merger
- strategic alliance
15
Q
Increase internal capacity of organization without acquiring other firms.
A
Internal growth
16
Q
Acquiring unrelated business
A
Conglomerate Diversification
17
Q
Two roughly similar size firms combine into one to benefit of synergy
A
Merger
18
Q
Temporary alliance
A
Strategic alliance
19
Q
The change in a broad set of actions and decisions such as changing relationships and organization of work
A
Corporate Restructuring
20
Q
Types of restructuring (3)
A
- growth
- stability
- retrenchment
21
Q
Retrenchment strategies (3)
A
- Turnaround
- Divestment
- Liquidation
22
Q
Eliminating unprofitable outputs, pruning/cutting assets, reducing size of work force, rethinking firm’s product lines and customer groups
A
Turnaround
23
Q
Selling one of business units
A
Divestment
24
Q
Last resort strategy
A
Liquidation
25
Vertical Integration Strategies (3)
1. Forward integration
2. Backward integration
3. Horizontal integration
26
Gaining ownership or increased control over distributors or retailers
Forward integration
27
Seeking ownership or increased control of a firm's suppliers
Backward integration
28
Seeking ownership or increased control over competitors
Horizontal integration
29
Types of intensive strategies (3)
1. Market penetration
2. Market development
3. Product development
30
Seeking increased market share for present products or services in present markets through greater marketing efforts
Market Penetration
31
Introducing present products or services into new geographic area
Market development
32
Seeking increased sales by improving present products or services or developing new ones
Product development
33
Diversification strategies (3)
1. Concentric diversification
2. Conglomerate diversification
3. Horizontal diversification
34
Adding new, but related products or services
Concentric diversification
35
Adding new, unrelated products or services
Conglomerate diversification
36
Adding new, unrelated products or services for present customers
Horizontal diversification
37
Defensive strategies (4)
1. Joint venture
2. Retrenchment
3. Divestiture
4. Liquidation
38
2 or more sponsoring firms forming a separate organization for cooperative purposes
Joint venture
39
Regrouping through cost and asset reduction to reverse declining sales and profit. Sometimes called as "turnaround" or "reorganizational strategy"
Retrenchment
40
Selling a division or part of an organization
Divestiture
41
Selling all of a company's assets, in parts, for their tangible worth
Liquidation
42
Michael porter's generic strategies
1. Cost leadership Strategies (Low-cost & Best-value)
2. Differentiation strategies
3. Focus Strategies (Low-cost focus & Best-value focus)
43
Focuses on improving competitive position of company's products or services within the specific industry or market segment
Business Strategy
44
Competitive strategy (4)
1. Low cost
2. Differentiation
3. Direct Competition
4. Focus on niche
45
Generic competitive strategies (2)
1. Lower cost strategy
2. Differentiation strategy
46
Greater efficiencies than competitors
Lower cost strategy
47
Unique/superior value, quality, features, service
Differentiation
48
Cost leadership...
1. low-cost competitive strategy
2. Broad mass market
3. Efficient-scale facilities
- Cost reductions
- Cost minimization
49
Cost leadership types (2)
1. low-cost strategy
2. best-value strategy
50
offers products to a wide range of customers at the lowest price available on the market
low-cost strategy
51
offers products to a wide range of customers at the best price-value available on the marker
best-value strategy
52
Strives to be the low-cost producer in an industry
Cost leadership
53
Differentation....
1. broad mass market
2. unique product/service
3. premiums charged
4. less price sensitivity
54
Aimed at producing products that are considered unique
Differentiation
55
producing products and services that fulfill the needs of small groups of people
Focus
56
2 types of focus
1. low-cost focus strategy
2. best-value focus strategy
57
offers products or services to a small range (niche) of customers at the lowest price available on the market
low-cost focus strategy
58
offers products to a small range at the best price-value available on the market.
best-value focus strategy / differentiation
59
Concerned with organization's internal resources and processes which effectively deliver the corporate and business strategic direction
Functional/operational strategies
60
How to conduct SWOT anlaysis
1. Analyze internal and External environment
2. Perform SWOT analysis & Document
3. Prepare action plans
61
Steps of SWOT
1. Establish objectives
2. Select contributors
3. Allocate research and information gathering tasks
4. Create a workshop environment
5. List strengths, weaknesses, opportunities
6. Evaluate listed ideas against objectives
7. carry your findings forward
62
PESTLE
1. Political
2. Economic
3. Social
4. Technological
5. Legal
6. Environmental
