Strategy + CSR Flashcards
(24 cards)
What is the SCP Framework?
Structure-Conduct-Performance; analyzes how market structure affects firm behavior and performance.
Name three modes of market entry.
Exporting, licensing, franchising, foreign direct investment.
What are some challenges in global supply chains?
Complexity, logistics, regulations, diversification, nearshoring, and friendly shoring.
What are the five types of regional economic integration?
Free trade area, customs union, common market, economic union, and political union.
What is the expected impact of population and economic growth on resource needs?
Greater demand for natural resources, food, water, and energy.
What is the water footprint of a product?
The total volume of freshwater used to produce it, including direct and indirect usage.
How has globalization affected business ethics?
It increased firms’ reach and visibility, creating more responsibility toward diverse stakeholders.
What does CSR stand for?
Corporate Social Responsibility.
Name three forms of Foreign Direct Investment (FDI).
Greenfield investment, acquisition, joint venture.
What 3 characteristics must a core competency have to provide long-term competitive advantage?
1) Create customer value, 2) Be rare, 3) Be difficult to imitate or substitute
What are firms now expected to do beyond legal compliance?
Act ethically and consider environmental and social impacts.
What is strategy in business?
Actions taken by management to achieve the goals of the firm.
What is centralization in organizational structure?
Retaining decision-making authority at headquarters.
What are core competencies?
A harmonized combination of resources and skills that provide a firm with a competitive edge in the marketplace.
What does ESG stand for?
Environmental, Social, and Governance.
What is the 7-S Framework?
A McKinsey model that includes structure, strategy, systems, shared values, style, staff, and skills.
What’s a misconception about CSR and profitability?
That CSR is bad for business; in reality, responsible firms attract more investments and talent.
Why must core competencies be updated regularly?
Because the business environment is constantly changing, especially due to globalization.
What is a competitive advantage?
A firm’s ability to perform in ways that competitors cannot easily imitate, often leading to superior performance.
Why is water becoming a critical issue?
It’s limited, and demand is rising rapidly; by 2040, 47% of the world may live under severe water stress.
What are common reasons for government trade intervention?
National defense, politics, protect industries, jobs, ensure fair competition, increase revenue.
What is decentralization in organizational structure?
Delegating decision-making authority to foreign subsidiaries or affiliates.
What are some common payment methods in international trade?
Cash in advance, on account, letter of credit.
What is profitability?
A metric showing how efficiently a business generates profit relative to its size and resources.
