Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
26 Cards in this Set
- Front
- Back
|
Defining terms |
|
|
|
STEP analysis |
|
|
|
Fahey & Narayanan 4 stage step analysis |
|
|
|
What is IOE thought |
Industrial organisation economic |
|
|
What is SCP model |
Structure-conduct-performance |
|
|
Porters five forces framework |
|
|
|
Threat of entry (2) |
Barriers to entry Retaliation from incumbents |
|
|
Barriers to entry (7) |
●Supply side economies of scale ●Demand side benefits of scale ●Customer switching costs ●Capital requirements ●Incumbency advantages independent of size ●Equal access to distribution channels ●Restrictive government policy |
|
|
Expected retaliation-likely to fear if: (4) |
●Previously responded vigorously to new entrants ●Possess substantial resources to fight back ●Likely to cut prices to retain market share ●Industry growth slow-have to steal market share |
|
|
Supplier group powerful if: (6) |
●Supplier group more concentrated than industry ●Does not depend heavily on industry for revenues ●Industry faces swithing costs ●Suppliers offer products that are differentiated ●No substitutes ●Supplier can threaten to integrate into industry |
|
|
Power of buyers Buyers have negotiated leverage if: (4) |
1 few buyers/each one large volumes 2 industry products standardised/undifferentiated 3 buyers face switching costs 4 credibly threaten to integrate backwards |
|
|
Power of buyers Price sensitive if: (4) |
1 products represent significant fraction of cost structure/budget 2 earns low profits/strapped for cash 3 quality of buyers products little affected by industry's products 4 indusrty products has little affect on buyers other costs |
|
|
Threat of substitute high if: (2) |
1 it offers an attractive price - performance trade off with industrys products 2 buyers costs of switching to substitute low |
|
|
Rivalry among existing competitors Intensity of competition greatest if: (5) |
1. Competitors numerous and roughly equal in size and power 2. Industry growth slow. Fights for market share. 3. Exit barriers high. 4. Rivals highly committed/aspirations for leadership 5. Firms cannot read each others signals |
|
|
Price competition most likely to occur if: (4) |
1. Products nearly identical and low switching costs. 2. Fixed costs high and marginal costs low. 3. Capacity must be expanded in large increments to be efficient 4. Products are perishable |
|
|
Zero sum competition |
One firms loss is anothers gain. If many compete on same attributes/meet same needs likely result in zero sum, driving down profitability. |
|
|
Positive sum competition |
No one wins at anothers expense. Meeting needs of different segments-support higher profitability and possibly expand industry |
|
|
Analysing the competitive environment (2) |
Strategic group analysis (Mcgee and Thomas) Competitor analysis-porters generic strategies |
|
|
Shareholder theory Grants 4 basic arguments for it |
1. In a competitive world, those not seeking profit maximisation will lose its existence 2. Managers not single mindedly pursuing profits will be replaced by owners 3. Interests of stakeholders will inevitably be served better by emphasis upon profit maximisation 4. Diluting organisations purpose with other considerations adds unnecessary complexity |
|
|
Stakeholder analysis Richard lynch (2) |
● those who carry out actions of stratgey ● those who have a stake in the outcome |
|
|
Stakeholder analysis Hitt et al (3) |
● capital market stakeholders ●product market stakeholders ●organisational stakeholders |
|
|
Stakeholder power matrix - 2 axis Winstanley et al |
1. Operational power 2. Criteria power |
|
|
Stakeholder power matrix-4 segments Winstanley et al |
A. Arms length power B. Comprehensive power C. Operational power D. Disempowered |
|
|
Prioritising stakholders Mitchell et all stakholder typology (7) |
1. Dormant stakeholder 2. Discretionary stakeholder 3. Demanding stakeholder 4. Dominant stakeholder 5. Dangerous stakeholder 6. Dependant stakeholder 7. Definitive stakeholder |
|
|
What is IOE |
Industrial Organisation Economic |
|
|
What is SCP |
Structure Conduct Performance |
