Mgt Quiz 2

Front 1

overall cost leadership

Back 1

a firms generic strategy based on appeal to the industrywide market using a competitive advantage based on low cost

Front 2

competitive parity

Back 2

a firms achievement of similarity, or being "on par," with competitors with respect to low cost, differentiation, or other strategic product characteristics

Front 3

introduction stage

Back 3

the first stage of the indutry life cycle characterized by 1. new products that are not known to consumers, 2. poorly defined market segments, 3. unspecified product features, 4. low sales growth, 5. rapid technologicalchanges, 6. operating losses, 7. a need for financial support

Front 4

growth stage

Back 4

1. strong increases in sales, 2. growing competition, 3. developing brand recognition,4. need for financing complementary value chain activities such as marketing, sales, customer service, and R&D

Front 5

maturity stage

Back 5

characterized by 1. slowing demand growth, 2. saturated markets,3. direct competition, 4. price competition, and 5. strategic emphasis on efficient operations

Front 6

decline stage

Back 6

the fourth stage of the product life cycle characterized by 1. falling sales and profits, 2. increasing price competition, 3. industry consolidation

Front 7

4 basic strategies available in the decline stage

Back 7

Maintaining, harvesting, exiting the market, consolidation

Front 8

maintaining

Back 8

keeping a product going without significantly reducing marketing supprt, technological development, or other investments in the hope hat competitors will eventually exit the market

Front 9

harvesting

Back 9

obtaining as much profit as possible and reducing costs quickly.

Front 10

exiting the market

Back 10

dropping the product from a firms portfolio

Front 11

consolidation

Back 11

involves one firm acquiring at a reasonable price the best of the surviving firms in an industry

Front 12

sharing activities

Back 12

having activities of 2 or more businesses value chains done by one of the businesses

Front 13

market power

Back 13

firms' abilities to profit through restricting or controlling supply to a market or coordinating with other firms to reduce investment

Front 14

vertical integration

Back 14

an expansion or extension of the firm by integrating preceding or successive production processes

Front 15

In making vertical integration decisions six issues should be considered

Back 15

1. Is the company satisfied with the quality of the value that its present suppliers and distributors are providing?

2. Are there activities in the industry value chain presently being outsourced or performed independently by others that are a viable source of future profits.

3. Is there a high level of stability in the demand for the organizations products?

4. How high is the proportion of additional production capacity actually absorbed by exisiting products or by the prospects of new and similar products?

5. Does the company have the necessary competencies to execute the vertical integration?

6. Will the veritcal integration initiative have potential negative impacts on the firms stakeholders?

Front 16

portfolio management

Back 16

method of 1. assessing the competitive position of a portfolio of businesses within a corporation, 2. suggesting strategic alternatives for each business, and 3. to identify priorities for the allocation of resource across the businesses

Front 17

acquisitions

Back 17

the incorporation of one firm into another through purchase

Front 18

mergers

Back 18

the combining of two or more firms into one new legal entity

Front 19

divestment

Back 19

the exit of a business from a firms portfolio

Front 20

strategic alliances

Back 20

a cooperative relationship between two or more firms