Mgmt 430 Test 1

Front 1

Strategic Competitiveness

Back 1

achieved when a firm successfully formulates and implements a value-creating strategy

Front 2

Strategy

Back 2

an integrated and coordinated set of commitments and actions designed to exploit core concept core competencies and gain a competitive advantage

Front 3

Competitive Advantage

Back 3

firm implements a strategy competitors are unable to duplicate or find too costly to try to imitate

Front 4

Above average returns

Back 4

returns in excess of what an investor expects to earn from other investments with similar amount of risk

Front 5

Risk

Back 5

an investor's uncertainty about the economic gains or losses that will result from a particular investment

Front 6

Average returns

Back 6

returns equal to those an investor expects to earn fro other investments with a similar amount of risk

Front 7

Strategic Mgmt Process

Back 7

full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above average returns

Front 8

Global economy

Back 8

one in which goods, services, people, skills, and ideas move freely across geographic borders

Front 9

Hypercompetition

Back 9

term that captures realities of the competitive landscape, inherent instability and change

Front 10

Globalization

Back 10

the increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services

Front 11

Perpetual innovation

Back 11

rapid and consistently new, information-intensive technologies replace older ones

Front 12

Disruptive technologies

Back 12

technologies that destroy the value of an existing technology and create new markets

Front 13

Knowledge

Back 13

gained through experience, observation, & inference as an intangible asset: growing proportionately to total shareholder value

Front 14

Strategic Flexibility

Back 14

a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment

Front 15

I/O (Industrial Organization) Model

Back 15

industry of co. has stronger influence on performance than do the choices mgrs make inside their organization

Front 16

I/O Assumptions

Back 16

1. external environment is assumed to impose pressures and constraints
2. Most firms competing in industry assume control of similar resources and similar strategies
3. Resources are highly mobile across firms
4. Decision makers are rational and act in the best interest of the co.

Front 17

Five Forces Model

Back 17

suppliers, buyers, competitive rivalry among firms, product substitutes, potential entrants

Front 18

Resources

Back 18

inputs into a firm's production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers

Front 19

Capability

Back 19

the capacity for a set of resources to perform a task or an activity in an integrative manner

Front 20

Core competencies

Back 20

capabilities that serve as a source of competitive advantage for a firm over its rivals

Front 21

Resources (2)

Back 21

valuable, rare, costly to imitate, nonsubstitutable

Front 22

Vision

Back 22

picture of what the firm wants to be and what it wants to achieve in the future

Front 23

Mission

Back 23

specifies the business in which the firm intends to compete and the customers it intends to serve

Front 24

Stakeholders

Back 24

individuals who can affect, and are affected by the strategic outcomes achieved and who have enforceable claims on firm's performance

Front 25

Capital Market Stakeholders

Back 25

shareholders, major suppliers of capital,

Front 26

Product Market Stakeholders

Back 26

customers, suppliers, host communities, and unions

Front 27

Organizational Stakeholders

Back 27

employees, managers, nonmanagers

Front 28

Organizational culture

Back 28

complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business

Front 29

General Environment

Back 29

composed of dimensions in the broader society that influence an industry and the firms within it

Front 30

Demographic Segment

Back 30

population size, age structure, geographic distribution, ethnic mix, income distribution

Front 31

Economic Segment

Back 31

inflation, interest, trade deficits, budget deficits, personal savings, business savings, GDP

Front 32

Political/Legal Segment

Back 32

antitrust laws, taxation laws, deregulation philosophies, labor training laws, educational philosophies and policies

Front 33

Sociocultural Segment

Back 33

diversity, women in workforce, quality of work life, concerns for environment,

Front 34

Technological Segment

Back 34

product innovations, applications & knowledge, focus of private and gov supported R&D expenditures, new communication technologies

Front 35

Global Segment

Back 35

critical global markets, political events, new industrialized countries, different cultural and institutional attributes

Front 36

Industry Environment

Back 36

the set of factors that directly influence a firm and its competitive actions and responses (threat; new entrants, buyers, suppliers, product substitutes, intensity of rivalry among competitors)

Front 37

External Environmental Analysis

Back 37

Scanning, Monitoring, Forecasting, Assessing

Front 38

Opportunity

Back 38

condition in the general environment that, if exploited, helps a company achieve strategic competitiveness (POSSIBILITIES)

Front 39

Threat

Back 39

condition that may hinder a companys efforts to achieve strategic competitiveness (CONSTRAINTS)

Front 40

Economies of Scale

Back 40

derived from incremental efficiency improvements through experience as a firm grows larger, quantity increases cost of mftg each unit decreases

Front 41

Strategic Groups

Back 41

a set of firms emphasizing similar strategic dimensions to use a similar strategy

Front 42

Competitor Analysis

Back 42

1. future objectives
2. current strategy
3. assumptions
4. strengths and weaknesses

Front 43

Value

Back 43

measured by a product's performance characterestics and by its attributes for which customers are willing to pay

Front 44

Strategic decisions managers make about internal organization

Back 44

nonroutine, have ethical implications, and significantly influe the firm's ability to earn above-average returns

Front 45

Characteristics of decisions concerning resources

Back 45

uncertainty, complexity, intraorganizational conflicts

Front 46

Tangible Resources

Back 46

financial, organizational, physical, technological (seen and quantified)

Front 47

Intangible Resources

Back 47

human resources, innovation, reputational (assets that are rooted deeply in the firm's history and have accumulated over time)

Front 48

Four criteria of sustainable competitive advantage

Back 48

Valuable, rare, costly to imitate, nonsubstitutable

Front 49

Primary Activity

Back 49

are involved with a product's physical creation, its sale and distribution to buyers, and its service after the sale

Front 50

Support Activity

Back 50

provide the assistance necessary for the primary activity to take place

Front 51

Primary Activity (2)

Back 51

1. Inbound logistics
2. Operations
3. Outbound logistics
4. Marketing & Sales
5. Service

Front 52

Support Activity (2)

Back 52

1. Firm infrastructure
2. HR Mgmt
3. Technological Development
4. Procurement

Front 53

Outsourcing

Back 53

the purchase of a value-creating activity from an external supplier

Front 54

Business-level strategy

Back 54

an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets

Front 55

Market Segmentation

Back 55

a process used to cluster people with similar needs into individual and identifiable groups

Front 56

Cost leadership strategy

Back 56

an integrated set of actions taken to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors

Front 57

Differentiation Strategy

Back 57

an integrated set of actions taken to produce goods or services (at an acceptable cost) that customers perceive as being different in ways that are important to them

Front 58

Focus Strategy

Back 58

is an integrated set of actions taken to produce goods or services that serve the needs of a particular competitive segment

Front 59

Integrated Cost Leadership/Differentiation Strategy

Back 59

involves engaging in primary and support activities that allow a firm to simultaneously pursue low cost and differentiation

Front 60

Flexible Manufacturing System (FMS)

Back 60

increases the flexibilities of human, physical, and information resources that the firm integrates to create relatively differentiated products a relatively low costs

Front 61

Total Quality Management Systems

Back 61

a managerial innovation that emphasizes an organizations total commitment to the customer and to continuous improvement of every process through the use of data-driven, problem solving approaches based on empowerment of employee groups and teams

Front 62

Competitors

Back 62

firms operating in the same market, offering similar products, and targeting similar customers

Front 63

Competitive rivalry

Back 63

the ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position

Front 64

Competitive Behavior

Back 64

the set of competitive actions and responses the firm takes to build or defend its competitive advantages and to improve its market position

Front 65

Mulitmarket competition

Back 65

occurs when firms compete against each other in several product or geographic markets

Front 66

Competitive dynamics

Back 66

refer to all competitive--total set of actions and responses taken by all firms competing within a market

Front 67

Competitive Analysis

Back 67

-Market Commonality
-Resource Similarity

Front 68

Resource similarity

Back 68

the extent to which the firm's tangible and intangible resources are compatible to a competitor's in terms of both type and amount

Front 69

Drivers of Competitive Behavior

Back 69

1. Awareness
2. Motivation
3. Ability

Front 70

Interfirm Rivalry

Back 70

-Likelihood of Attack
-Likelihood of Response

Front 71

Likelihood of Attack

Back 71

1. First-mover incentives
2. Organizational size
3. Quality

Front 72

Likelihood of Response

Back 72

1. Type of competitive action
2. Reputation
3. Market Dependance

Front 73

Competitive Action

Back 73

a strategic or tactical action the firm takes to build or defend its competitive advantages or improve its market position

Front 74

Competitive response

Back 74

a strategic or tactical action the firm takes to counter the effects of a competitors competitive action

Front 75

Strategic action/Strategic response

Back 75

a market-based move that involves a significant commitment of organizational resources and is difficult to implement and reverse

Front 76

Tactical action/Tactical response

Back 76

a market-based move that is taken to fine-tune a strategy; it involves fewer resources and is relatively easy to implement and reverse

Front 77

First-mover

Back 77

a firm that takes an initial competition action in order to build or defend its competitive advantages or to improve its market position

Front 78

Second-mover

Back 78

a firm that responds to the first mover's competitive action, typically through imitation

Front 79

Late-mover

Back 79

a firm that responds to a competitive action a significant amount of time after the first mover's action and the second mover's response

Front 80

Quality

Back 80

exists when the firm's goods or services meet or exceed customers' expectations

Front 81

Slow-cycle markets

Back 81

those in which the firm's competitive advantages are shielded from imitation commonly for long periods of time and where imitation is costly

Front 82

Fast-cycle markets

Back 82

markets in which the firm's capabilities that contribute to competitive advantages aren't shielded from imitation and where imitation is often rapid and inexpensive

Front 83

Effective Business Model

Back 83

1. Involves how a company selects its customers
2. creates value for its customers
3. achieves and sustains a high level of profitability
4. produces goods and services