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45 Cards in this Set

  • Front
  • Back
Four parts to creating an environmentally aware organization?
environmental scanning
Environmental monitoring
Competitive intelligence
Environmental forecasting
Parts of the general environment
Porter's Five Forces
Threat of New entrants
Bargaining power of buyers
Bargaining power of suppliers
Threat of substitutes
Intensity of rivarlry within industry
Six sources of entry barriers
Economies of scale
Switching costs
Product Differentiation
Capital requirements
Access to Distribution Channels
Cost Disadvnatages independent of sale
getting the same function in a different way
What value is the strategic group concept as an analytical tool?
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
Primary activities
inbound logistics
outbound logistics
marketing and sales
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
Support activities
procurement- function of purchasing inputs
Technology development
Human resource management
General Administration
Types of firm resources
Organizational capabilities- core competencies
Four questions about sustainable competitive advantage?
Is the resource valuable?
Is the resource rare?
Can the resource be imitated easily?
Are there substitutes available?
Costly to imitate: 4 factors
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
Four factors in determining whether employees and managers will maintain a high proportion of the profits they earn
Employee bargaining power
Manager bargaining power
Employee replacement costs
Employee exit costs
Balanced Scoredcard
Meaningful integration of the many issues that come into evaluating a firm's performance
BS- 4 perspectives
Internal Business
Innovation and Learning
4 areas of customer perspective
3 parts of intellectual capital
Human capital
Social capital
Pied piper effect
recruit job candidates who have cast social networks
Overall Cost Leadership Characteristics
Standardized products
lowest competitive price
features acceptable to many customers
Differentiation Charcteristics
prestige or brand image
customer service
dealer network
Focus Strategy
A firm selects a segment or group to target its product
Cost focus
firm strives to create a cost advantage in its target segment
Differnetiation focus
firm seeks to differntiate in its target market
Profit Pool
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
Two issues addressed by diversification
What businesses should a corporation compete in
How can these businesses be managed so they create "synergy"
Why a firm would diversify into related businesses
Economies of scope
Market power
Why a firm would diversify into unrelated businesses
Efficicent Internal Capital Market Allocation
Portoflio Management
Economies of Scope
Cost savings from leveraging core competencies or sharing related activities among businesses in the corporation
Three criteria for core competencies
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
Three types of Diversification
Related Diversification: Market Power
Related Diversification: Economies of scope and revenue enhancement
Unrelated Diversification: Financial Synergies and Parenting
Market power
similar businesses working together (Tribune Company, McDonalds)
Vertical Integration
Transaction Cost perspective of vertical integration
every market transaction involves some transaction cost
Unrelated Diversification: Financial Synergies and Parenting
add value to companies and restructure
The Means to achieve Diversification
Merger- Marriage
Acquisition- one company buys a controlling interest in another firm
Takeover- Target does not want to be acquired
Real Options Analysis
An investment analysis tool from the field of finance
REAL OPTIONS- options used on physical things; used to continue, delay or abandon a project
offer to buy the stock back from the hostile company at a higher price than the unfriendly company paid for it
Poison pills
can give shareholders certain rights in the event of a takeover by another firm
Strategic Management
Consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain CA
Four key attributes to Strategic Management
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
effectiveness vs. efficiency
effectiveness- doing the right thing
efficiecny- doing things right
Strategic Management Process (3 parts)
Strategy Analysis
Strategy Formulation
Strategy Implementation
Zero sum or Symbiosis (Stakeholer managment)
zero sum- no winners
Symbiosis- growth in interpersonal relationships
Three key driving forces in business
intellectual capital
Three types of leaders needed in strategic management process
local line leaders
executive leaders
internal networkers
Meaningful strategic objectives