Strategic Management Quiz 1

Front 1

Four parts to creating an environmentally aware organization?

Back 1

environmental scanning
Environmental monitoring
Competitive intelligence
Environmental forecasting

Front 2

Parts of the general environment

Back 2

demographic
sociocultural
political/legal
technological
economic
global

Front 3

Porter's Five Forces

Back 3

Threat of New entrants
Bargaining power of buyers
Bargaining power of suppliers
Threat of substitutes
Intensity of rivarlry within industry

Front 4

Six sources of entry barriers

Back 4

Economies of scale
Switching costs
Product Differentiation
Capital requirements
Access to Distribution Channels
Cost Disadvnatages independent of sale

Front 5

Substitution

Back 5

getting the same function in a different way

Front 6

What value is the strategic group concept as an analytical tool?

Back 6

Helps a firm identify barriers to mobility that protect a group from attacks by other groups
Help a firm identify groups whose competitive positionmay be marginal or tenuous
Helps chart the future directions of firms' strategies
Strategic groups are helpful in thinking through the implications of each industry trend for the strategic group as a whole

Front 7

Primary activities

Back 7

inbound logistics
operations
outbound logistics
marketing and sales
service

Front 8

Value

Back 8

Measured by total revenue
Firm is profitable if the value that it receives is greater than the total costs involved in creating its product or service

Front 9

Support activities

Back 9

procurement- function of purchasing inputs
Technology development
Human resource management
General Administration

Front 10

Types of firm resources

Back 10

Tangible
Intangible
Organizational capabilities- core competencies

Front 11

Four questions about sustainable competitive advantage?

Back 11

Is the resource valuable?
Is the resource rare?
Can the resource be imitated easily?
Are there substitutes available?

Front 12

Costly to imitate: 4 factors

Back 12

Physical uniqueness
Path Dependency- unique and scarce because of all that has happened along the path
casual ambiguity- impossible to disentangle the causes of either what the valuable resource is or how it can be re-created
Social complexity- interpersonal relations

Front 13

Four factors in determining whether employees and managers will maintain a high proportion of the profits they earn

Back 13

Employee bargaining power
Manager bargaining power
Employee replacement costs
Employee exit costs

Front 14

Balanced Scoredcard

Back 14

Meaningful integration of the many issues that come into evaluating a firm's performance

Front 15

BS- 4 perspectives

Back 15

Customer
Internal Business
Innovation and Learning
Financial

Front 16

4 areas of customer perspective

Back 16

time
quality
performance/service
costs

Front 17

3 parts of intellectual capital

Back 17

Human capital
Social capital
knowledge

Front 18

Pied piper effect

Back 18

recruit job candidates who have cast social networks

Front 19

Overall Cost Leadership Characteristics

Back 19

Efficiency
Standardized products
lowest competitive price
features acceptable to many customers

Front 20

Differentiation Charcteristics

Back 20

prestige or brand image
technology
innovation
features
customer service
dealer network

Front 21

Focus Strategy

Back 21

A firm selects a segment or group to target its product

Front 22

Cost focus

Back 22

firm strives to create a cost advantage in its target segment

Front 23

Differnetiation focus

Back 23

firm seeks to differntiate in its target market

Front 24

Profit Pool

Back 24

Total profits in an industry at all points along the industry's value chain
Potential profit pool will be deeper in some segments of the value chain than in others

Front 25

Two issues addressed by diversification

Back 25

What businesses should a corporation compete in
How can these businesses be managed so they create "synergy"

Front 26

Why a firm would diversify into related businesses

Back 26

Economies of scope
Market power
Parenting

Front 27

Why a firm would diversify into unrelated businesses

Back 27

Efficicent Internal Capital Market Allocation
Portoflio Management

Front 28

Economies of Scope

Back 28

Cost savings from leveraging core competencies or sharing related activities among businesses in the corporation

Front 29

Three criteria for core competencies

Back 29

Core competence must enhance CA by creating customer value
Different businesses in the corporation must be similar in at least one important way related to the core competence
The core competencies must be difficult for competitors to imitate or find substitutes

Front 30

Three types of Diversification

Back 30

Related Diversification: Market Power
Related Diversification: Economies of scope and revenue enhancement
Unrelated Diversification: Financial Synergies and Parenting

Front 31

Market power

Back 31

similar businesses working together (Tribune Company, McDonalds)
Vertical Integration

Front 32

Transaction Cost perspective of vertical integration

Back 32

every market transaction involves some transaction cost

Front 33

Unrelated Diversification: Financial Synergies and Parenting

Back 33

add value to companies and restructure

Front 34

The Means to achieve Diversification

Back 34

Merger- Marriage
Acquisition- one company buys a controlling interest in another firm
Takeover- Target does not want to be acquired

Front 35

Real Options Analysis

Back 35

An investment analysis tool from the field of finance
REAL OPTIONS- options used on physical things; used to continue, delay or abandon a project

Front 36

Greenmail

Back 36

offer to buy the stock back from the hostile company at a higher price than the unfriendly company paid for it

Front 37

Poison pills

Back 37

can give shareholders certain rights in the event of a takeover by another firm

Front 38

Strategic Management

Back 38

Consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain CA

Front 39

Four key attributes to Strategic Management

Back 39

Directed toward overall organizational goals and objectives
Includes multiple stakeholders in decision making
Requires incorporating both short-term and long-term perspectives
Involves the recognition of trade-offs between effectiveness and efficiency

Front 40

effectiveness vs. efficiency

Back 40

effectiveness- doing the right thing
efficiecny- doing things right

Front 41

Strategic Management Process (3 parts)

Back 41

Strategy Analysis
Strategy Formulation
Strategy Implementation

Front 42

Zero sum or Symbiosis (Stakeholer managment)

Back 42

zero sum- no winners
Symbiosis- growth in interpersonal relationships

Front 43

Three key driving forces in business

Back 43

globalization
technology
intellectual capital

Front 44

Three types of leaders needed in strategic management process

Back 44

local line leaders
executive leaders
internal networkers

Front 45

Meaningful strategic objectives

Back 45

measurable
specific
appropriate
realistic
timely