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39 Cards in this Set
- Front
- Back
I/O Industrial Organization Model Focuses on the environment that is ___ the firm |
outsides |
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The Resource-Based Models focuses on the ___ of the firm |
inside |
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Firms in the ______ strategic groups use ___ strategy |
same, similar |
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How to achieve superior return?! Locate an industry with ___ potential for ______ return |
high, above average |
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________ & _________ environments influence the company's ability to achieve strategic competitivenessand earn above-average returns. |
External, Internal |
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The resource-based view assumes that each organization is a collection of unique ___ and _____ |
resources, capabilities |
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RBV!? |
Resource based View |
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Are resouces and capabilites highly mobile across firms!? |
NO |
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Differences in ____ and _____ are the basis of competitive advantages. |
resources and capabilities |
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Competitive advantage is subject to erosion by competition, especially by ____ |
imitation |
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Business level strategies are intended to create ____ between the firms position relative to those of its rivals. |
|
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Three Generic Strategies: (2) Create products and/or services that are unique &valued (3) Narrow product lines, buyer segments, or targetedgeographic markets |
(1) Overall cost leadership (2) Differentiation (3) Focus |
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_____ = The Principal determinants of a firm’s unit costs (cost perunit of output) relative to its competitors |
cost drivers |
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____ = Decreased average & marginal cost as increase inproduction volume |
Economies of Scale |
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____ = Cost efficiency from joint productions / activities |
Economies of (Scope) |
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______ = “Experience Curve (Learning curve)” |
Economies of Experience |
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_____ = occurs when a firm is able to obtain from itsdifferentiation a price premium in the market thatexceeds the cost of providing the differentiation. |
Differentiationd advantage |
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_____ = the costs of market transactions. When the costs ofadministering transactions within the firm are lowerthan the costs of market transactions, the firm grows insize and scope. |
(Transactions Costs) |
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______: where “make” decision ends &“buy” decision is starts |
Firm Boundary |
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_____ = when a firm expands into a similar field ofoperation |
Related diversification: |
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______ = when the additional product line is verydifferent from the firm’s core business (i.e. conglomeratediversification) |
Unrelated diversification: |
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_____ diversification: involves the firm moving into the“same stage” of production |
(Horizontal) |
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_____ diversification: when a firm undertakes “successivestages” in the production of a good or service |
(Vertical) |
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Tests for deciding whether diversification willcreate shareholder value:The (_____) test: the industries chosen for diversification must be structurallyattractive or capable of being made attractive.The (_____) test: The cost of entry must not capitalize all the future profits.The (____) test: Either the new unit must gain competitive advantage from its linkwith the corporation, or vice versa. |
(1) Attractiveness (2) Cost-Of-Entry |
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(____) integration: the firm acquires ownership andcontrol over the production of its own “inputs”. |
Backward |
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(______) integration: the firm acquires ownership andcontrol of activities previously undertaken by its customers. |
Forward |
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(_______) (i.e. international outsourcing)Relocation by a company of a business process from onecountry to another (e.g. call center in India) |
Offshoring |
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_____- = Two firms agree to integrate their operations on arelatively co-equal basis |
Merger |
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____ = One firm buys a controlling, 100 percent interest inanother firm with the intent of making the acquired firma subsidiary business within its portfolio |
Acquisition |
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Anti-takeover provisions Examples: (___) : executive compensation package (_____) : stock repurchase program (_____) : to make the potential acquisition less desirableor hard to acquire by issuing rights such as |
Golden Parachutes Poison Pill |
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Internal development of new products is oftenperceived as “___-risk & ____” activity. |
high & slow |
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Using M&A to diversify a firmis the ___and ____way to change its portfolio ofbusinesses. |
quickest, easiest |
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_____ = The process of evaluating a target firm for acquisition |
(Due Diligence) |
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_____ = Additional costs and complexity of management may exceed thebenefits of the economies of scale and additional market power |
Diseconomies of scale |
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____ = Two or more firms create a legally independent companyby sharing some of their resources and capabilities. |
Joint Ventrue |
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(_____) : building or acquiringproductive assets in another country |
FDI : Foreign Direct Investment |
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Theory of _____ Explains why countries engage in international trade |
Comparative Advantage |
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(______Venture)a firm invests directly in another country/market byestablishing a new wholly owned subsidiary (i.e.internal development) |
(Greenfield Venture) |
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GG |
GG |