Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

AUDIT: Chapter 4 > STRATMGMT - Chapter 5 > Flashcards

STRATMGMT - Chapter 5 Flashcards

(92 cards)

Start Studying
1
Q

TRUE OR FALSE: If there is a long delay between an attack and a response, this generally provides the attacker an edge

A

TRUE

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

service industries

A

franchising

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

This involves creating a new, untapped market rather than competing with rivals in an existing market.

A

Blue ocean strategy

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

It refers to the nature of raw material and other inputs that firms need to create goods and services

A

Factor conditions

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

“driving pleasure”

A

Fahvergnugen

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

What strategy captures the essence of the saying “you get what you pay for”

A

Differentiation Strategy

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

borrowed from the arts

A

Bricolage

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

This refers to a firm that has operations in more than one country

A

Multinational corporation

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

the determinants of national advantage

A

Diamond model

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

This adds complexity to decisions about whether to respond to a rival’s moves

A

Multipoint Competition

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

This is most frequently used in manufacturing industries

A

Licensing

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

With this strategy, a firm tries to balance the desire for efficiency with the need to adjust to local preferences within various countries

A

Transnational strategy

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

This refers to how challenging it is to survive domestic competition

A

Firm strategy, structure, and rivalry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the possible responses to Disruptive Innovation?

A
  1. Ignore the disruption, thus focus on the traditional strategy
  2. Attacking the other dimensions
  3. Simply match the competitor’s move
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

TRUE OR FALSE: Firms tend to cooperate in activities located far in the value chain from customers, and competition generally occurs close to customer

A

TRUE

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

Cost leaders manage to charge low prices but have a profit through the use of ___________

A

Efficiency

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

highlights a complex interaction

A

Co-opetition

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

TRUE OR FALSE: Successful use of a differentiation strategy depends only on offering unique features to potential customers

A

FALSE

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

This is generally best suited for “creating a pie”

A

Cooperation

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

This strategy requires competing based on price to target a narrow market

A

Focused cost-leadership

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

This refers to when a firm faces the same rival in more than one market

A

Multipoint Competition

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

This strategy attempts to convince customers to pay a premium price for its good or services by providing unique and desirable features

A

Differentiation Strategy

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

He argued that technological advances and increased interconnectedness is leveling the competitive playing field between developed and emerging countries

A

Thomas Friedman

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

A business operation in a foreign country that a firm full owns

A

Wholly owned subsidiary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
TRUE OR FALSE: One drive of the rapid growth of external business over the past two decades has been the opening up of large companies
FALSE (external-internal)
26
This involves whether a firm is trying to gain an edge by lowering costs down or by offering something unique in the market
Competitive Advantage
27
Firms that uses focused cost leadership generally perform poorly because they lack a clear market or competitive pricing
FALSE (focused cost leadership-stuck in the middle)
28
cut-throat
Red ocean strategy
29
It occurs when rivals do not act aggressively because each recognizes that the other can retaliate in multiple markets.
Mutual Forbearance
30
TRUE OR FALSE: The pharmaceutical industry is the location of many strategic alliances
TRUE
31
series of upsprings
Arab spring
32
A firm using a ___________ sacrifices responsiveness to local requirements within each of its markets in favor of emphasizing efficiency
Global Strategy
33
TRUE OR FALSE: Overcoming advantages in factor conditions leads companies to develop unique skills
FALSE (disadvantage-advantage)
34
This refers to the general way of positioning a firm within an industry
General strategy
35
This is the lower-end brand that a firm introduces to try to protect a firm's market share without damaging the firm's existing brands
Fighting brand
36
A finnish rock band that has created a niche for itself by combining heavy metal music with the imagery and costumes of Vikings
TURISAS
37
Who discovered the idea of business-level strategy?
Michael Porter
38
Narrow Market
Niche
39
It is created when the costs of offering goods and services decreases as a firm is able to sell more items
Economies of Scale
40
A small position that a firm intentionally establishes within a market in which it does not yet compete
Foothold
41
It is a cooperative arrangement in which two or more organizations each contributing to the creation of new entity.
Joint venture
42
This refers to the potential for a company's operations in a country to struggle because of difference in language, customs, norms, and customer preferences
Cultural risk
43
This refers to the potential for a country's economic conditions and policies, property rights protections, and currency exchange rates to harm a firm's operations within a country
Economic risk
44
It occurs when job that had been sent overseas are returning home
Reshoring
45
Cost leaders rely on this one to achieve efficiency
Economies of Scale
46
granting the right to use
franchising
47
What are the advantages of marketing internationally?
1. Access to new customers 2. Lowering costs 3. Diversification of business risk
48
This sacrifices efficiency in favor of emphasizing responsiveness to local requirement within each of its markets
Multidomestic strategy
49
rapid and unpredictable moves
Hypercompetition
50
Refers to the potential for government upheaval or interference with business to harm an operation within a country
Political risk
51
What are the three international strategy?
1. Multidomestic strategy 2. Global strategy 3. Transnational strategy
52
TRUE OR FALSE: One route toward a best-cost strategy is for a firm to adopt a business model whose fixed costs and overhead and very high relative to the costs that competitors are absorbing
FALSE (high-low)
53
"He who hestitates is lost"
Joseph Addison
54
Occurs when a firm's assets in a country are seized by te national government
Nationalization
55
It involves creating goods within a firms home country and then shipping them to another country
Exporting
56
What are the five basic options to enter a new market?
1. Exporting 2. Creating a wholly owned subsidiary 3. Franchising 4. Licensing 5. Joint venture & strategic alliances
57
TRUE OR FALSE: The pursuit of uniqueness is often taken to the proverbial "next level" by firms using a Focused cost-leadership
FALSE (cost leadership - differentiation)
58
What are the four factors under diamond model?
1. Demand condition 2. Factor condition 3. Related and supporting industries 4. Firm strategy, structure, and rivalry
59
This exists when making the initial move into a market allows a firm to establish a dominant position
First-mover advantage
60
This allow firms to enjoy success that might not otherwise be reached
Cooperative Moves
61
What are the three types of risk when marketing internationally?
1. Political risk 2. Economic risk 3. Cultural risk
62
TRUE OR FALSE; Making a first move is generally risky
FALSE (generally-inherently)
63
A firm following is strategy offers products or services with acceptable quality and features to a broad set of customers at a low price.
Cost-Leadership Strateggy
64
Land, labor, infrastructure, and capital markets are example of what factor?
Factor conditions
65
Firms that charge relatively low prices and offer substantial differentiation are using what strategy?
Best-cost strategy
66
key components of modern vehicles
Electronics
67
TRUE OR FALSE: A relative lack of market research can lead cost leaders to be less skilled than other firms at detecting important environmental changes.
TRUE
68
powerful framework
Diamond Model
69
This strategy explains that an effectively serving the specialized needs of a niche market can create great riches.
Focused Differentiation Strategy
70
It addresses the question of how a firm will compete in a particular industry
Business-level strategy
71
"the early birds gets the worm"
First-mover advantage
72
It means using whatever resources and materials are available as inputs to create a product
Bricolage
73
This refers to the nature of domestic customers
Demand conditions
74
TRUE OR FALSE: Executive apply the concept of Joint Venture when they combine ideas from existing businesses to create a new business
FALSE (Joint venture-bricolage)
75
It refers to the potential that an operation might fail
Business risk
76
This strategy requires offering a unique features that fulfill the demands of a narrow market.
Focused Differentiation
77
This involves whether a firm is trying to attract customers in general or trying to attract a specific segment of customers.
Scope of Operations
78
These are strategies that involves targeting a relatively narrow niche of potential customers
Focus strategies
79
They are known for insisting on very high levels of quality, aesthetics, and reliability.
Japanese consumers
80
The extent to which firms' domestic suppliers and other complementary industries are developed and helpful
Related and supporting industries
81
What are the two dimensions of business-level strategy?
1. Competitive Advantage 2. Scope of operations
82
A firm is said to be a ___________ if it does not offer features that are unique enough to convince the customer to buy its offerings, and its prices are too high to compete effectively based on price
Stuck in the middle
83
companies exist in what type of world?
flat world
84
An innovation that conflicts with and threatens to replace traditional approaches to competing within an industry
Disruptive Innovation
85
This occurs when goods and services offered under different brands are located close to one another.
Colocation
86
This involves very rapid and unpredictable moves and countermoves that can undermine competitive advantage
Hypercompetition
87
This enables firms to share resources and to learn from one another's strengths
Cooperation
88
TRUE OR FALSE: Business risk is reduced when a firm is involved in multiple countries
TRUE
89
TRUE OR FALSE: A firms' business level strategy should try its hardest to serve the varied needs of different segment of customers in an industry.
FALSE
90
It is a cooperative arrangement between two or more organizations that does not involve the creation of a new entity
Strategic Alliances
91
TRUE OR FALSE: Focusing on generic strategies allows executives to concentrate on the core elements of firms' business-level strategies
TRUE
92
What are the three factors that determines the likelihood that a firm will respond to a competitive move?
1. Awareness 2. Motivation 3. Capability

AUDIT: Chapter 4 (8 decks)

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