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48 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Compare and contrast licensing, franchising, and joint venues.
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Under a licensing agreement, a domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce its product, sell its service, or use its brand name in a particular foreign market
Franchising - is a collection of networked firms in which the manufacturer or marketer of a product or service, the franchisor, licenses the entire business to another person or organization, the franchisee. Joint venues- which occurs when two existing companies collaborate to form a third company |
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Experiemental approach versus compression approach to Innovation?
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experimental approach:
Uses design iteration, Testing, Milestones, Multifunctional teams , and Powerful leaders Compression approach uses: Planning, Supplier Involvement, Shortening Time of Individual Steps Overlapping Steps Multifunctional Teams |
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Identify the criteria for effective goal setting:
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Effective goal setting can be accomplished using the S.M.A.R.T acronym.
Specific, measurable, attainable, realistic, and timely. |
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Explain the 5 stages of organizational decline.
BS, IS, FAS, CS, DS |
The 5 stages of organizational decline are:
blinded stage- decline begins because key managers don’t recognize the internal or external changes that will harm their organizations. Inaction Stage- as organizational performance problems become more visible, management may recognize the need to change but still take no action. Faulty Action Stage- due to rising costs and decreasing profits and market share, management will announce belt-tightening plans designed to cut costs, increase efficiency, and restore profits Crisis Stage- bankruptcy or dissolution (i.e., breaking up and selling the different parts of the company) is likely to occur unless the company completely reorganizes the way it does business. Dissolution Stage- after failing to make the changes needed to sustain the organization, the company is dissolved through bankruptcy proceedings or by selling assets in order to pay suppliers, banks, and creditors. |
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Know the relationships between diversification types and risk.
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A single business with no diversification is extremely risky. Conglomerates composed of completely unrelated businesses are even riskier than single. The best approach is related diversification in which the different business units have similar products.
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Know the relationships between feedback and performance.
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Get in Class?
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Voluntary export restraints:
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voluntarily imposed limites on the number or volume of products exported to a particular country.
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Goal setting:
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An effective way of setting goals is using the S.M.A.R.T acronym. Specific, Measurable, Attainable, Realistic, and Timely.
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Tactical Plans:
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Plans created and implemented by middle managers that specify how the company will use resources, budgets, and people over the next six months to two years to accomplish specific goals within its mission.
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MBO:
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A four-step process in which managers and employees discuss and selet goals, develop tactical plans, and meet regularly to review progress toward goal accomplishment.
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Operational Plans(3 types):
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single use plans, stnading plans, and budgets.
Single-use plans - deal with unique, on-time-only events. Standing plans- used repeatedly to handle frequently recurring events. Budgets- they specify what must or must not happen and often describe precisely how a particular action should be performed |
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Planning time lines:
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Strategic planning- 2 to 5 years
Tactical planning- 6 months to 2 years Operational planning - 30 days to 6 months |
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Bounded rationality:
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Get in class?
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Group think:
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A barrier to good decision making caused by pressure within a group for members to agree with each other.
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Group decision making:
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Two advantages to GDM - defining the problem and generating alternative solutions.
One major pitfall - Groupthink |
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Market commonality:
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the degree to which two companies have overlapping products, services, or customers in multiple markets.
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Quota:
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a limit on the number or volume of imported products.
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Gatt:
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General Agreement on Tariffs and Trade: a worldwide trade agreement that reduced and eliminated tariffs, limited government subsidies, and established protections for intellectual property.
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NAFTA:
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North American Free Trade Agreement: A regional trade agreement between the united States, Canada, and Mexico.
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WTO:
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World Trade Organization: as the sucessor to GATT, the only international organization dealing with the global rules of trade between nations.
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Cognitive and Affective conflict
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C-type conflict, or cognitive conflict, focuses on problem- and issue-related differences of opinion
, a-type conflict, or affective conflict, refers to the emotional reactions that can occur when disagreements become personal rather than professional |
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Devil’s Advocate
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Generate a potential solution
Assign a devil’s advocate to criticize and question Present the critique of the solution to key decision makers Gather additional information Decide whether to use, change, or not use the originally proposed solution |
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Corporate level strategies
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the overall organizational strategy that addresses the question "What business or businesses are we in or should we be in?"
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Portfolio strategies
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a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.
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Grand strategies (all 3 types)
GSR |
A strategy that focuses on mproving the way in which the company sells the same products or services to the same customers. There are 3 major strategies.
Growth Strategy- a strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business. Stability Strategy- a strategy that focuses on improving the way in which the company sells the same products or services to the same customers Retrenchment strategy- a strategy that focuses on turning around very poor company performance by shrinking the size or scope of the business. |
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BCG Matrix
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a portfolio strategy, developed by the Boston Consulting Group, that categorizes a corporations's businesses by growth rate and relative market share and helps managers decde how to invest corporate funds.
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Barriers to entry
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barriers like large capital requirements to buy expensive equipment that might make competition weaker and prices and profits will generally be higher
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Positioning strategies (all 3)
CDF |
positioning strategies are
Cost leadership- producing a product or service of acceptable quality at consistently lower production costs than competitors so that the firm can offer the product or service at the lowest price in the industry. Differentiation- making your product or service sufficiently different from competitors' offerings so that customers are willing to pay a premium price for the xtra value Focus strategy- uses either cost leadership or differentiation to produce a specialized product or service for a limited specially targeted group of customers in a particular geographic region. |
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S – Curve
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a pattern of technological innovation characterized by slow initial progress, then rapid progress, and then slow progress again as a technology matures and reaches it limits.
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Technological discontinuity
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when a scientific advance or a unique combination of existing techonologies creates a significant breakthrough in performance or function.
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CAFTA
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Central America Free Trade Agreement - a regional trade agreement between Costa Rica, the Dominican Republic, El Salvador, guatemala, Honduras, Nicaragua, and the United Sates.
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Trade barriers
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government imposed regulations that increase the cost and restrict the number of imported goods.
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Exporting
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selling domestically produced products to customers in foreign countries.
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Generational change
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change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology.
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Dominant design
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aa new technological design or process that becomes the accepted market standard.
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Flow
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a psychological state of effortlessness, in which you become completely absorbed in what you're doing and time seems to pass quickly.
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Multifunctional team
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work teams composed of people from different departments.
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Design iterations
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a cycle of repetition in which a company tests a prototype of a new product or service, improves on that design, and the builds and tests the improved prototype.
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Resistance to change
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opposition to change resulting from self-interest, misunderstanding and distrust, and a general intolerance for change.
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Tariff
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a direct tax on imported goods.
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Slack resources
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a cushion of extra resources that can be used with options based planning to adapt to unanticipated change, problems or opportunities.
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Filibuster
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? people talk an ass load of time to delay a process?
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Government subsidy
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? not anywhere!!! bah! She is crazy and I have a date with Adam... even if it doesn't work thank you god for giving me the chance.
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Maastricht Treaty
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a regional trade agreement between most European countries.
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Wholly owned affiliate
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foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company.
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Proximate goal
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short-term goals or sub goals
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1. Define sustainable competitive advantage, identify and explain the 5 components associated with sustainable competitive advantage and provide an example of each component in your discussion as it relates to a company that has a sustainable competitive advantage.
VRIRN |
Sustainable competitive advantage occurs when other companies cannot duplicate the value a firm is providing to customers.
Four conditions must be met to achieve sustainable competitive advantage: Valuable resources, rare resources, imperfectly imitable resources, and nonsubstitutable resources. Valuable resources allow companies to improve their efficiency and effectiveness. For example a company can outmatch another company by having more inventors and engineers to make the product better. Rare resources- resources that are not controlled or possessed by many competing firms. For example; Apple's introduction of the ipod that had hard drive technology no other company could match. Imperfectly imitable resources- resources that are impossible or extremely difficult to duplicate. For example; Itunes is very difficult to duplicate. nonsubstitutable resources- no other resources can replace them and produce similar value or competitive advantage. for example; Producing equivalent sustitutes for itunes. |
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2. Identify Porter’s 5 industry forces. Explain what each means and provide an example for each of the forces as it relates to a company competing within a single industry.CR, TNE, TSPorS, BPS, BPB
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Character of Rivalry- is a measure of intensity of competitive behavior between companies in an industry. For example Direct TV could be classified as a character of rivalry that is aggressive and cutthroat because their ads attack local cable stations explaining their disadvantages to satelitte.
Threat of New entrants- measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry. For example the threat of new entrants for the video game market might be low because of the massive amount of barriers a company would face getting into the market. Threat of substitute products or services- measure of the ease with which customers can find substitutes for an industry's products or services. Generic medicines are great examples of substitute products Bargaining power of suppliers- is a measur of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs. When flat screen tv's first came out, the suppliers had great bargaining power. Bargaining power of Buyers- is a measure of the influence that customers have on a firm's prices. for example if a company sells a product to multipule buyers then they have the ability to set the price. |
CR, TNE, TSPorS, BPS, BPB
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