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27 Cards in this Set
- Front
- Back
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Define the Five forces analysis?
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A) The analysis of the impact of the threat of new entrants, supplies, buyers, substitutes and rivals on profitability in an industry.
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What Does the five forces analysis aim to answer?
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A). What is the current profitability of the industry
. what is expected future profitability of the industry |
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What is an example of the five forces model?
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- Why is it that prescription pharmaceutical and petroleum industries are more profitable than the agricultural and travel industry.
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Using the five forces models how will you know if industry profitability will be high? |
–The threat of new entrants is low - The power of suppliers is low - The power of buyers is low - The power of substitutes is low - industry rivalry is low |
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Define the Diamond Model? |
The Framework developed to explain the cooperative and competitive development of clusters of organisation in a country, leading to international success for the industry. |
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What are Porters 3 generic Strategies? |
- Differentiation - Focus - Low Cost |
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In Porters theory, what are some examples in the differentiation strategy? |
- Product Quality - Product Reliability - Product Innovation - Brand Name - Product features |
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In Porters theories define the focus strategy? |
- The strategy that focuses on a narrow geographical customer market or product range. |
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What are some strategies in the focus strategy? |
- Narrow Product line- where a company focuses on particular products or services and puts special time and attention to them - Customer Segmentation- This seeks to only satisfy a particular customer group, where it might be too small for big competitors to target e.g. boutique wine producers. |
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In porters theories define the low cost strategy?
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- The strategy that aims to achieve the lowest cost delivery to the customer
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What are some strategies in the low cost strategies? |
- Technology advantage - Having superior technology can also be a source of low cost - No-Frills product- cutting out extra features to reduce costs and sticking to the main features. - Product Innovation- Finding cheaper ways to make and deliver a product or service by changing the production process can be important. |
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In Porters theories define leader strategy? |
- The strategy that combines low-cost delivery and a basis of product or service differentiation. |
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Define Operational Excellence? |
- The strategy that provides value chain efficiency and effectiveness, particularly in theproduction areas, but not a better product |
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Define Effective execution? |
- The strategy that delivers what it says, when itsays |
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Define Customer intimacy? |
- The strategy that focuses on anticipating customer needs through a deep and personal relationship with the customer overtime. |
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Define product leadership? |
- The strategy that offers a stream of new product development and innovations. |
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Define the Resource based view theory? |
- This strategy involves that the strategy can be developed from within, by leveraging the resources of the organisation. - The resource-based views of the firm were that firms in an industry were diverse and unique due to the specific sets of resources available to each firm. |
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What are the resources in the resource based view theory? |
- Tangible and intangible assets and know how, if done well can be bundles together to form a unique and defensible portfolio of capabilities that would sustain a competitive advantage over time. |
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What are the reasons for resources not being particularly mobile between organisations? |
- Asset specificity - Stickiness - Transaction costs - sunk costs - Information asymmetry - Sustainable competitive advantage |
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Define Ethics?
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- Ethics are part of Values , leaders and manager must have appropriate ethical standards for managing public organisations. Ethical problems happen both in the top level and everyday experiences which can affect organisational decision making due to the variety of each individual ethical standards.
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What can affect individual ethical decisions in a workplace? |
- Bonus payments - Stock options and shares - Possibility of promotion - Free gifts from sponsors - Customers and suppliers can influence decisions of individuals. |
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What are factors that can contribute to good ethical decisions harder? |
- Ill conceived goals that are designed to promote particular behavior but actually promoting negative actions. - Motivated Blindness- where it is in people’s interest to overlook behavior that occurs. - Indirect blindness- where some are to blame for behaviour which is occurred through others who are less noticed. - Incremental creep- where unethical behaviour develops incrementally. |
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What are some social responsibility Strategies? |
Pollution Prevention- The organisation focuses on reducing pollution. This approach is driven by compliance and regulation by internal values of the organisation. Product stewardship- The organisation takes the responsibility of whole process of design, supply and production, use and disposal of its products. Sustainable Development- The organisation considers whether or not its product stewardship outcomes actually match what is needed for future generations sustainability. |
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What are 4 international Strategies?
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- Multi-domestic strategy
- Global Strategy - Transnational Strategy |
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What is Multi Domestic Strategy ?
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- A firm using a multi-domestic strategy sacrifices efficiency in favor of emphasizing responsiveness to local requirements within each of its markets. E.g. changing products to adapt to local needs.
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What is Global Strategy?
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- A firm using a global strategy sacrifices responsiveness to local requirements within each of its markets in favor of emphasizing efficiency. This strategy is the complete opposite of a multi-domestic strategy. Some minor modifications to products and services maybe made in various markets, but a global strategy stresses the need to gain economies of scale by offering essentially the same products or services in each market.
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What is Transnational Strategy?
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- A firm using a transnational strategy seeks a middle ground between a multi-domestic strategy and a global strategy. Such a firm tries to balance the desire for efficiency with the need to adjust to local preferences within various countries.
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