Business Strategy Test #1: Chapters 1, 2, & 3

Front 1

Strategic management is concerned with creating a ___________.

Back 1

competitive advantage

Front 2

People should care about the strategic direction of firms because it will help them understand the direction of: your ___________, ___________, and other ___________.

Back 2

company, competitors, companies

Front 3

When looking at strategic management, the goal is to assess the organization's ___________ and adjust to a changing ___________.

Back 3

performance, environment

Front 4

The two perspectives of organizational leadership address one question: Do ___________ matter?

Back 4

managers

Front 5

The perspective of organizational leadership where the organizational leader is a key force in determining organizational success or failure

Back 5

Romantic (or internal)

Front 6

Concerning the romantic (internal) perspective of organizational leadership, success creates CEO ___________, while failure creates CEO ___________.

Back 6

superheroes, scapegoats

Front 7

Another perspective of organizational leadership involves changes in external factors such as:
- shifts in customer ___________
- international ___________
- rising ___________ costs
- price ___________

Back 7

tastes/preferences, competition, material, erosion

Front 8

In regards to organizational leadership. external conditions determine contexts in which organizational leaders create or lose organizational ___________.

Back 8

value

Front 9

Analyses, decisions, and actions for creating and sustaining competitive advantage

Back 9

strategic management

Front 10

4 key attributes of strategic management:
1. Directed at overall organizational ___________
2. Includes multiple ___________
3. Incorporates ___________ and ___________ perspectives
4. Recognizes ___________ between effectiveness and efficiency

Back 10

goals, stakeholders short-term, long-term, trade-offs

Front 11

Analysis, in regards to strategic management, involves the analysis of strategic ___________. It also includes analysis of the ___________ and ___________ environment, as well as strategic goals: ___________, ___________, ___________

Back 11

inputs, internal, external, vision, mission, objectives

Front 12

There are two broad decisions of strategic management:
- ___________ in which to compete
- ___________ to compete in those industries

Back 12

Industries, How

Front 13

Strategic management formulation/decisions encompasses both ___________ and ___________ operations.

Back 13

domestic, international

Front 14

Implementation/Actions of strategic management involves:
- ___________ allocation: where to focus resources
- Organizational ___________: how to group people and tasks

Back 14

Resource, design

Front 15

Competitive advantage with respect to the marketplace involves meeting present and future ___________, and doing so in ways that customers regard as ___________ and ___________ and that competitors find ___________ or ___________.

Back 15

demand, unique, valuable, difficult to imitate, substitute

Front 16

The three major steps of the strategic management processes are:
- Strategy ___________
- Strategy ___________ (decisions)
- Strategy ___________ (actions)

Back 16

analysis, formulation, implementation

Front 17

Strategy analysis involves understanding conditions in the ___________ environment, such as ___________ for creating value and ___________ to competitive advantage. It also involves understanding a firm's strengths and weaknesses in regards to activities in ___________ and the firm's ___________ base.

Back 17

external, opportunities, threats, value chain, resource,

Front 18

Some things that have to be considered during the strategy formulation (decisions) stage of the strategic management process include competing in specific product markets. They then have to decide whether to focus on ___________ leadership or ___________. They also want to maintain ___________ through different stages of industry life cycle.

Back 18

cost, differentiation, advantage

Front 19

Another important consideration during the strategy formulation (decisions) step of the strategic management process is the business portfolio. This includes choosing the business(es) in which to ___________ and creating ___________ among businesses.

Back 19

compete, synergies

Front 20

Factors to look at concerning international strategy include: modes of ___________, as well as creating and sustaining competitive ___________ internationally.

Back 20

entry, advantage

Front 21

The strategy implementation (actions) step of the strategic management process involves: corporate ___________ and organizational ___________.

Back 21

governance, design

Front 22

Systems that ensure managers operate in shareholders' interests are part of ___________.

Back 22

corporate governance

Front 23

Corporate governance involves internal control, where the primary participants are: ___________, ___________, and ___________.

Back 23

shareholders, strategic managers, board of directors

Front 24

External controls involved in corporate governance include: ___________, ___________, and ___________.

Back 24

financial markets, regulators, press

Front 25

Organizational stakeholders in capital markets include: ___________ and ___________.

Back 25

owners (shareholders), lenders

Front 26

Organizational stakeholders in the product markets include: ___________, ___________, and ___________

Back 26

suppliers (of goods, services, capital, labor), customers, community

Front 27

Organizational stakeholders of an organization include: ___________ and ___________

Back 27

employees, managers

Front 28

Corporate social responsibility views the firm as a ___________.

Back 28

citizen

Front 29

Customers evaluate both a firm's products/services and its practices in producing those products as part of ___________.

Back 29

corporate social responsibility

Front 30

Concerning corporate social responsibility, business involves ___________ and ___________ considerations in addition to ___________ ones.

Back 30

environmental, social, economic

Front 31

In regards to corporate social responsibility, we recognize that society's needs may create business opportunities, a concept known as social ___________.

Back 31

innovation

Front 32

Organizational design involves: structures consistent with ___________. It also looks at organizational ___________.

Back 32

strategy, forms

Front 33

The flow of goods, services, capital, people, information, knowledge across borders is known as ___________, which is a key driver of strategy.

Back 33

globalization

Front 34

New knowledge about products and production and distribution is part of ___________, a key driver of strategy.

Back 34

technology

Front 35

Human knowledge as a source of competitive advantage is known as ___________, a key driver of strategy.

Back 35

intellectual capital

Front 36

Coherence in strategic direction involves a goal hierarchy.
- ___________: destination driven by passion
- ___________: statement of purpose and basis of competition that communicates to stakeholders and is value-focused
- ___________: yardstick for measuring goal attainment

Each of these must be consistent with one another.

Back 36

vision, mission, objectives

Front 37

A ___________ statement is a statement of purpose and basis of competition that is value-focused and communicates to stakeholders.

Back 37

mission

Front 38

What are the three major steps of strategic management?

Back 38

analysis, decisions, actions

Front 39

The firm direction for creating and sustaining competitive advantage that encompasses the entire organization and its internal and external participants is know as ___________.

Back 39

strategic management

Front 40

Forms of external control include: ___________ and ___________

Back 40

corporate governance systems, stakeholders

Front 41

What are the key drives of strategy?

Back 41

globalization, technology, intellectual capital

Front 42

We want to maintain ___________ among goal hierarchy.

Back 42

consistency

Front 43

An overemphasis on internal characteristics can result in: product ___________, & missed opportunities for new product ___________.

Back 43

obsolescence, development

Front 44

If firms neglect external analysis, assumptions about external environment may become ___________.

Back 44

outdated

Front 45

Creating environmental awareness at organizational level involves what four steps?

Back 45

Scanning, monitoring, competitive intelligence, forecasting

Front 46

When creating environmental awareness at the organizational level, ___________ involves surveillance of equipment. During surveillance of environment, firm's try to ___________ future changes and detect changes. They also want to recognize ___________ before competitors. They try to act before changes occur (___________) rather than responding afterwards (___________).

Back 46

scanning, anticipate, patterns, proactive, reactive

Front 47

Surveillance of equipment during the scanning phase provides firms with general top of the mind awareness of ___________ behaviors and business ___________.

Back 47

societal, practices

Front 48

When creating environmental awareness at the organizational level, ___________ is tracking movement or changes in specific trends, sequences of events, or streams of activities.

Back 48

monitoring

Front 49

The monitoring phase of creating environment awareness at the organizational level includes watching specific ___________ and ___________ indicators of future events. These may include an index of economic ___________, as well as the ___________ index.

Back 49

formal, informal, indicators, NAPM

Front 50

During the competitive intelligence phase of creating environmental awareness at organizational level, firms attempt to: define and understand industry and identify rivals' ___________ and ___________, as well as anticipate ___________ moves and decrease own ___________ time.

Back 50

strengths, weaknesses, competitors', response

Front 51

Sources of competitive intelligence (creating environmental awareness) include: business ___________, ___________ pricing, & competitors' ___________ backgrounds.

Back 51

press, competitors', management

Front 52

Sources of competitive intelligence must be open to seemingly ___________ bits of information that form ___________, as well as have an awareness of ___________ changes that threaten status quo.

Back 52

unrelated, patterns, technological

Front 53

When gathering competitive intelligence, firms want to be sure to avoid ___________ and ___________ behavior.

Back 53

unethical, illegal

Front 54

During the last step of creating environmental awareness, "plausible projections about direction, scope, speed, and intensity of environmental change" are made. This is known as ___________.

Back 54

environmental forecasting

Front 55

The environmental forecasting phase of creating environment awareness involves ___________ analysis: ___________ judgment combined with ___________ analysis.

Back 55

scenario, human, quantitative

Front 56

Framework for identifying key elements of strategic context including external elements (environmental opportunities for value creation, environmental threats to competitive position) & internal elements (firm strengths: conditions in which firm excels, firm weaknesses: characteristics which firm may lack in comparison to competitors)

Back 56

SWOT analysis

Front 57

Analysis of the ___________ environment shows that external factors have profound influence on firm outcomes and entire industries. This environment affects different industries differently.

Back 57

general

Front 58

What are the six segments of the general environment?

Back 58

S = sociocultural
E = economic
P = political/legal
T = technological
+ = demographic
+ = global

Front 59

The ___________ segment of the general environment looks at a numerical measurement of characteristics of a population (ex: age, income, ethnic composition, geographic distribution, etc.). Literally, it is a description of people.

Back 59

demographic

Front 60

The ___________ segment of the general environment looks at values, beliefs, attitudes of a society (ex: concern over greenhouse gases, heath consciousness [fitness, diets, etc.]). It is distinct from, but related to, demographics.

Back 60

sociocultural

Front 61

The ___________ segment of the general environment looks at political processes, elections, legislation, regulation, adjudication. It also analyzes competition among individuals and groups for "voice" in public policy,

Back 61

political/legal

Front 62

The ___________ segment of the general environment looks at growth in knowledge leading to new products and services and improvements in production and distribution. Examples include: genetic engineering, information technology CAD/CAM, artificial intelligence, nanotechnology, mass production, & assembly line production.

Back 62

technological

Front 63

The ___________ segment of the general environment looks at general economic conditions facing a firm and its industry. General economic indicators include: key economic indicators, stock market indices, as well as other formal and informal indicators. We want to describe effects of this segment on firm strategic direction.

Back 63

economic

Front 64

The ___________ segment of the general environment looks at relevant (and changing) new global markets. It analyzes international political events (ex: changes in power, fall of Soviet rule, newly industrializing countries, terrorism, Arab Spring). It looks at cultural and institutional characteristics of global markets. It also looks into international organizations that promote global economic integration (ex: WTO, Transatlantic Business Dialogue).

Back 64

global

Front 65

Within the general environment, there are relationships among segments. Segments are not totally distinct. They are ___________ and mutually ___________.

Back 65

interrelated, influencing

Front 66

The competitive environment has [MORE/LESS] direct influence on industry competition and firm profitability than the general environment.

Back 66

more

Front 67

The ___________ environment consists of factor relevant to firm's strategy - customers, suppliers, and competitors (both existing and potential).

Back 67

competitive

Front 68

What tools do we use to analyze the competitive environment?

Back 68

Porter's five forces model & Strategic groups

Front 69

What are the elements of the Porter's five forces model?

Back 69

1. Rivalry among existing firms
2. Bargaining power of buyers
3. Threat of substitute products or services
4. Bargaining power of suppliers
5. Threat of new entrants

Front 70

New entrants expand industry ___________ and increases ___________ for market share.

Back 70

capacity, competition

Front 71

The threat of ___________ may include start ups as well as existing firms expanding into new business (ex: Phillip Morris' purchase of Miller Brewing).

Back 71

new entrants

Front 72

The threat of new entrants is influenced by ___________ to entry and anticipated ___________ from existing competitors.

Back 72

barriers, reactions

Front 73

- Threat of new entrants -
High barriers to entry reduce threat:
1) ___________ of scale
2) Brand ___________ and product ___________
3) ___________ requirements
4) ___________ costs
5) Access to ___________ channels
6) ___________ disadvantages independent of size
7) ___________ policy

Back 73

economies
identity, differentiation
capital
switching
distribution
cost
government

Front 74

The expected retaliation of existing competitors is a ___________ to new entrants. There is an ___________ for entrepreneurs in underserved niches.

Back 74

deterrent, opportunity

Front 75

The bargaining power of buyers looks at the bargaining power of buyers of industry ___________. They're motivated to negotiate for lower ___________, quality, service etc.

Back 75

output, prices

Front 76

Bargaining power of buyer groups is a function of:
___________ situation & the relative importance of purchases from the ___________ compared to its overall business.

Back 76

market, industry

Front 77

Bargaining power of buyers: factors
- Buyers are ___________, or each one purchases a significant percentage of total industry sales.
- The products that the buyers purchase represent a significant percentage of the buyers' ___________
- The products that the buyers purchase are ___________ or ___________.
- Buyers face few ___________ costs and can freely change suppliers.

Back 77

concentrated
costs
standard, undifferentiated
switching

Front 78

Bargaining power of buyers: factors
- Buyers earn low ___________, creating pressure for them to ___________ their purchasing costs.
- Buyers have the ability to engage in ___________ integration by becoming their own suppliers.
- The industry's product is relatively unimportant to the ___________ of the buyers' products or services.
- Buyers have ___________ information.

Back 78

profits, reduce
backward
quality
complete

Front 79

The bargaining power of suppliers looks at the bargaining power of suppliers of industry ___________ to charge higher prices, reduce quality of purchased goods/services. Factors influencing bargaining power of suppliers mirror those of the bargaining power of buyers.

Back 79

inputs

Front 80

Bargaining power of suppliers: factors
- The supplying industry is dominated by ___________ companies.
- There are no ___________ products, weakening industry players in relation to their suppliers.
- The ___________ industry is not a major customer of the suppliers.

Back 80

one or a few
substitute
buying

Front 81

Bargaining power of suppliers: factors
- The suppliers pose a credible threat of ___________ integration by "becoming their own customers."
- The suppliers' products are differentiation or have built-in switching costs, thereby ___________ in the industry players' ability to play one supplier against another.

Back 81

forward
reducing

Front 82

The intensity of rivalry among existing competitors involves jockeying for position among ___________ of industry output. Tactics include: ___________ competition, ___________ battles, product ___________, & customer ___________ levels or warranties.

Back 82

producers, price, advertising, introductions, service

Front 83

Intensity of rivalry among existing competitors: structural factors
1) ___________ or ___________ balanced competitors
2) High ___________ or ___________ costs
3) ___________ industry growth
4) Lack of ___________ or low ___________ costs
5) Capacity increases in ___________ increments ("clumpy")
6) ___________ of competitors
7) High ___________ stakes
8) High ___________ barriers

Back 83

numerous, equally
fixed, storage
slow
differentiation, switching
large
diversity
strategic
exit

Front 84

___________ perform similar or same functions as existing industry products but have different characteristics. (Ex: Sugar producers face threats from producers of high fructose corn syrup; Fiberglass producers face threats from producers of cellulose, rock wool, and styrofoam.)

Back 84

Substitutes

Front 85

The threat of substitute products and services is distinct from economics definition which defines ___________ products. In strategic thinking, Coke and Pepsi are ___________ products; Coke and Snapple are ___________.

Back 85

competing, competing, substitutes

Front 86

Limitations of five forces model:
- ___________ often difficult to identify.
- Does not account for the role of strategic ___________
- Some firms, most notably large ones, can often take steps to modify the ___________ structure
- Assumes ___________ factors, not firm ___________, comprise the primary determinants of firm profit
- Firms compete in many industries and markets and must be concerned with ___________ industry structures

Back 86

- Industry
- alliances/partnerships
- industry
- industry, resources
- multiple

Front 87

Two assumptions of strategic groups:
1. No two firms are totally ___________.
2. No two firms are totally ___________.

Back 87

identical, different

Front 88

Firms more similar to each other than to the rest of industry may be identified as a ___________ group.

Back 88

strategic

Front 89

Strategic groups: Dimensions of similarity
- Breadth of ___________ line
- ___________ scope
- ___________
- Degree of ___________ integration
- Type of ___________ (ex: dealer network, mass merchandisers, private label)
- Variety of strategic ___________ in an industry

Back 89

product
Geographic
Price/quality
vertical
distribution
combinations

Front 90

Strategic groups as a tool of industry analysis identify barriers to ___________ protecting one group from competition from another. These barriers include: factors deterring ___________ of firms from one group into another (ex: Walmart and Nordstrom's). Other barrier examples include: technology, brand image, & dealer network.

Back 90

mobility, entry

Front 91

Strategic groups as a tool of industry analysis identifies groups whose competitive position may be ___________ or tenuous (ex: JC Penney and Sears stuck in the middle between Walmart and Nieman Marcus). They also help chart ___________ direction of firm's strategies.

Back 91

marginal, future

Front 92

Strategic groups as a tool of industry analysis help managers think through implications of each industry ___________ for strategic group as a ___________ (ex: variable effect of interest rates on strategic groups in automobile manufacturing [ex: Porsche vs. Kia])

Back 92

trend, whole

Front 93

Environmental analysis is a necessary component of strategic ___________.

Back 93

planning

Front 94

Environmental awareness occurs through: ___________, ___________, ___________, and ___________.

Back 94

scanning, monitoring, competitive intelligence, environmental forecasting

Front 95

What are the two major components of the environment?

Back 95

General environment & competitive environment

Front 96

Why assess internal characteristics?
- Firms in the same industry using same strategies often vary in ___________ that is not due to industry or strategy, and, therefore, must be due to individual organizational differences: ___________. Resources not equally ___________ across firms.

Back 96

performance, resources, distributed

Front 97

Overview of internal analysis:
- Use the ___________ chain to identify internal potential for creating value.
- Explain ___________ using the resource-based view of the firm.
- Assess firm performance through financial ___________ analysis and ___________ satisfaction.

Back 97

- value
- competitiveness
- ratio, stakeholder

Front 98

The value chain looks at the organization as a sequential process of activities that create ___________.

Back 98

value

Front 99

The value chain exists within the larger context of the ___________ supply chain: suppliers, customers, alliance partners.

Back 99

industry

Front 100

Value chain ___________ activities contribute to physical creation of product or service. They include: inbound logistics, operations, outbound logistics, marketing and sales, service.

Back 100

primary

Front 101

___________ activities add value:
1. By themselves or
2. Through important relationships with primary and other support activities.

Back 101

Support

Front 102

Procurement, technology development, human resource management, and general administration are examples of ___________ activities.

Back 102

support

Front 103

Inbound logistics, operations, outbound logistics, marketing and sales, and service are examples of ___________ activities.

Back 103

primary

Front 104

Receiving, storing, and distributing (within the firm) product inputs {primary}

Back 104

Inbound logistics

Front 105

Materials handling, warehousing, inventory control, vehicle scheduling, & returns to suppliers are examples of ___________ logistics. {primary}

Back 105

inbound

Front 106

Transforming inputs into final form is known as ___________. Examples include: machining, packaging, assembly, testing, printing, & facility operations. {primary}

Back 106

operations

Front 107

Collecting, storing, and distributing product or service to buyers is known as ___________ logistics. Examples include: finished goods, warehousing, material handling, delivery vehicle operation, order processing, & scheduling. {primary}

Back 107

outbound

Front 108

Purchases of products and services by end users, sales activities by firm members, and inducements to influence the purchases is the definition of which primary activity?

Back 108

Marketing and sales

Front 109

Providing service to enhance or maintain product value, such as installation, repair, training, parts supply, & product adjustment {primary}

Back 109

service

Front 110

All activities related to the arrangement for purchasing (not handling) inputs used in the firm's value chain {support}

Back 110

procurement

Front 111

Knowledge, techniques, processes, procedures, and methods used at various stages of the value chain {support}

Back 111

technology development

Front 112

Recruiting, hiring, training, development, and compensation of all types of personnel {support}

Back 112

human resource management

Front 113

Human resource management supports both individual ___________ and ___________ activities and the entire ___________ chain. {support}

Back 113

primary, support, value

Front 114

General management, planning, finance, accounting, legal and government affairs, quality management, & information systems {support}

Back 114

general administration

Front 115

General administration typically supports entire ___________ chain rather than ___________ activities. {support}

Back 115

value, individual

Front 116

Interrelationships exist among value chain activities ___________ and ___________ organizations.

Back 116

within, across

Front 117

Interrelationships of the value chain include: interrelationships with the ___________ & relationships among activities within the ___________ and with other ___________ (ex: customers & suppliers) that are part of the firm's expanded value chain.

Back 117

firm, firm, organizations

Front 118

___________ are any transformation processes in which inputs are converted through a work process into outputs that add value.

Back 118

Operations

Front 119

Service firms also have ___________ activities.
- Accounting firms: convert records of transactions (inputs) into financial records
- Travel agency: creates itinerary including transportation, accommodations, and activities customized to one's budget and travel dates

Back 119

operations

Front 120

Sequence of activities that add value to firm inputs

Back 120

value chain

Front 121

Inbound logistics, operations, outbound logistics, marketing and sales, and service

Back 121

Primary activities

Front 122

Procurement, technology development, human resources management, general administration

Back 122

Support activities

Front 123

Resource-based view of the firm:
Explanation of firm competitiveness combines:
- Analysis of ___________ firm conditions
- Analysis of ___________ conditions in general environment and industry and competitive environment
- Evaluates extent to which firm's resources provide capabilities that are valuable, rare, difficult to imitate, and non-substitutable

Back 123

internal, external

Front 124

Resources that are relatively easy to identify, document, or observe

Back 124

tangible resources

Front 125

Resources that are typically embedded in unique routines and practices that have evolved or accumulated over time

Back 125

intangible resources

Front 126

Organizational capabilities:
- Competencies or skills used by a firm to convert ___________ into ___________
- Capacity to use ___________ and ___________ over time and in combination
- Ex: customer service, product development, innovation, manufacturing capability

Back 126

- inputs, outputs
- tangible, intangible

Front 127

Creating sustainable competitive advantage through resources and capabilities (VRIN framework)
V= ___________
R= ___________

Back 127

Value, Rarity

Front 128

Creating sustainable competitive advantage through resources and capabilities
* Difficult to [I]___________
- Physical ___________
- Path ___________: series of events occurring at various junctures in firm's development
- ___________ ambiguity: difficulty in precisely identifying cause-effect relationships of what a firm does and the product it produces
- ___________ complexity: interpersonal relations among the employees and managers of a firm, its culture, and its reputation among suppliers and customers

Back 128

imitate, uniqueness, dependence, causal, social

Front 129

Creating sustainable competitive advantage through resources and capabilities
- [N]___________
- Limited availability of strategically equivalent ___________:
*Substitute a similar resource that leads to same ___________
*Different resources become ___________ for each other (Ex: Amazon & Barnes and Noble)

Back 129

Non-substitutable
substitutes
strategy
sustitutes

Front 130

VRIN framework for creating sustainable competitive advantage through resources and capabilities:
V=
R=
I=
N=

Back 130

Value
Rarity
Difficult to [I]mitate
Non-substitutable

Front 131

One way of evaluating firm performance is through financial ___________ analysis.

Back 131

ratio

Front 132

There are five types of financial ratios. What are they?

Back 132

1. Short-term solvency or liquidity
2. Long-term solvency or liquidity
3. Asset management (turnover)
4. Profitability
5. Market value

Front 133

Analyzing changes over time and interrelationships among ratios

Back 133

financial ratio analysis

Front 134

Comparing financial position over time

Back 134

historical comparisons

Front 135

Comparison with other firms in industry {financial ratio analysis}

Back 135

comparison to industry norms

Front 136

Comparison to peers within firm's strategic groups {financial ratio analysis}

Back 136

comparison with key competitors

Front 137

Accounting-based measures are:
- ___________
- ___________ generated
- Subject to ___________ judgment and manipulation

Back 137

historical, internally, human

Front 138

Financial market-based measures are:
- ___________ oriented
- ___________ derived
- Less prone to ___________ bias

Back 138

future, externally, human

Front 139

___________ analysis identifies activities that potentially add value.

Back 139

Value chain

Front 140

The resource-based view of internal analysis identifies key resources that are potential sources of ___________. It also believes that sustained ___________ depends on capabilities that are valuable, rare, difficult to imitate, and non-substitutable.

Back 140

capabilities, competitiveness

Front 141

An example of performance evaluation criteria is ___________ analysis.

Back 141

financial ratio

Front 142

The four key attributes of strategic management include all of the following except:

- emphasis on the attainment of short-term objectives.
- including multiple stakeholder interests in decision making.
- incorporating both short-term and long-term perspectives.
- recognizing the trade-offs between effectiveness and efficiency.

Back 142

- emphasis on the attainment of short-term objectives.

Front 143

The four key attributes of strategic management include the idea that

- strategy must be directed toward overall organizational goals and objectives.
- strategy must be focused on one specific area of an organization.
- strategy must focus on competitor strengths.
- strategy must be focused on long-term objectives.

Back 143

- strategy must be directed toward overall organizational goals and objectives.

Front 144

Strategic management is concerned primarily with

- Behavior of work groups within firms rather than behavior of individuals within firms.
- Behavior of the overall economy rather than behavior within the economy.
- Behavior of first line supervisors rather than the behavior of middle management.
- Behavior of firms rather than individual human behavior within firms.

Back 144

- Behavior of firms rather than individual human behavior within firms.

Front 145

While working to prioritize and fulfill their responsibilities, members of an organization's board of directors should

- emphasize the importance of short-term goals.
- direct all actions of the CEO.
- represent their own interests.
- represent the interests of the shareholders.

Back 145

- represent the interests of the shareholders.

Front 146

Stakeholders are

- a new way to describe stockholders due to their legal residual claims on the firm’s assets.
- attorneys and their clients who sue the organization.
- individuals, groups, and organizations that affect, or are affected by, the success of the organization.
- creditors who hold a lien on the assets of the organization.

Back 146

- individuals, groups, and organizations that affect, or are affected by, the success of the organization.

Front 147

The system that ensures that managers operate the firm in the shareholders' interest best describes

- corporate social responsibility
- stakeholder management
- corporate governance
- corporate business policy

Back 147

- corporate governance

Front 148

The expectation that businesses will strive to improve the overall welfare of society best describes

- Corporate business policy
- Stakeholder management
- Corporate governance
- Corporate social responsibility

Back 148

- Corporate social responsibility

Front 149

__________ may be considered the "advance work" that must be done in order to effectively formulate and implement strategies.

- Goal setting
- Strategy analysis
- Organizational design
- Corporate entrepreneurship

Back 149

- Strategy analysis

Front 150

According to the text, the strategic management process entails three ongoing processes:

- analysis, actions, and synthesis.
- analysis, decisions, and actions.
- analysis, evaluation, and critique.
- analysis, synthesis, and antithesis.

Back 150

- analysis, decisions, and actions.

Front 151

__________ involves ensuring proper strategic controls and organizational designs.

- Business-level strategy
- Corporate-level strategy
- Strategy implementation
- Corporate governance

Back 151

- Strategy implementation

Front 152

Which of Mintzberg's 5 Ps refers to the way that managers in a firm perceive themselves and the world around them?

- perspective
- pattern
- ploy
- plan

Back 152

- perspective

Front 153

According to Henry Mintzberg, decisions flowing from a firm's strategic analysis are its

- realized strategy.
- deliberate strategy.
- emergent strategy.
- intended strategy.

Back 153

- intended strategy.

Front 154

The hierarchy of organizational goals is in this order (least specific to most specific):

- mission statements, strategic objectives, vision statements.
- mission statements, vision statements, strategic objectives.
- vision statements, strategic objectives, mission statements.
- vision statements, mission statements, strategic objectives.

Back 154

- vision statements, mission statements, strategic objectives.

Front 155

According to the reading, What is Strategy?, which of the three definitions is characterized by an underdeveloped notion of the external environment?

- Eclectic
- None of the three definitions can be characterized as having an underdeveloped notion of the environment.
- Hierarchical
- Matching

Back 155

- Hierarchical

Front 156

In contrast to an organization's vision, its mission should

- be shorter in length.
- be less detailed.
- encompass all the major rules and regulations of the corporate work force.
- encompass both the purpose of the company as well as the basis of competition.

Back 156

- encompass both the purpose of the company as well as the basis of competition.

Front 157

Vision statements are used to create a better understanding of the organization's overall purpose and direction. Vision statements are intended to

- Be broad and abstract
- Set organizational structure
- Provide specific objectives
- Be concrete and narrowly focused

Back 157

- Be broad and abstract

Front 158

Effective vision statements include

- a brief statement of the company's direction.
- all strategic directions of the organization.
- financial objectives and projected figures.
- strategic posturing and future objectives.

Back 158

- a brief statement of the company's direction.

Front 159

The notion that organizations operate mechanistically, or like machines, is contained in which definition of strategy as discussed by Barney in What is Strategy?

- matching
- hierarchical
- eclectic
- concentric

Back 159

- hierarchical

Front 160

According to Henry Mintzberg, the realized strategies of a firm

- must be kept confidential for competitive reasons.
- are a combination of deliberate and differentiation strategies.
- are a combination of deliberate and emergent strategies.
- must be based on a company's strategic plan.

Back 160

- are a combination of deliberate and emergent strategies.

Front 161

According to the reading “What is strategy?” by Barney, which of the following is NOT a strength of the matching definition of (approach to) strategy?

- It recognizes the impact of a firm’s internal strengths and weaknesses
- It emphasizes intention
- It emphasizes performance criteria
- It recognizes the impact of the environment

Back 161

- It emphasizes intention

Front 162

Which one of the five Ps of the eclectic definition of strategy expresses the idea that strategy can be identified from a series of repetitive actions that show consistency over time?

- ploy
- plan
- pattern
- precision

Back 162

- pattern

Front 163

According to the reading, What is Strategy?, which of three definitions represents the dominant view of strategy?

- Hierarchical
- Matching
- Eclectic
- None of the three definitions represents a dominant view of strategy.

Back 163

- Matching

Front 164

The notion that organizations operate mechanistically, or like machines, is contained in which definition of strategy as discussed by Barney in What is Strategy?

- concentric
- eclectic
- matching
- hierarchical

Back 164

- hierarchical

Front 165

An organization's mission statement and vision statement set the overall direction of the organization. Strategic objectives

- modify the mission statement.
- operationalize the mission statement.
- are a shorter version of the mission statement.
- are only clarified by the board of directors.

Back 165

- operationalize the mission statement.

Front 166

Environmental forecasting involves developing plausible projections about the ________ of environmental change.

- direction
- scope
- speed
- all of the above

Back 166

- all of the above

Front 167

_____________ tracks the evolution of environmental trends, sequences of events, or streams of activities.

- Competitive intelligence
- Environmental surveying
- Environmental scanning
- Environmental monitoring

Back 167

- Environmental monitoring

Front 168

Scanning the general environment would identify information on

- competitive rivalry.
- the aging population and ethnic shifts.
- substitute goods.
- customer and firm bargaining power.

Back 168

- the aging population and ethnic shifts.

Front 169

The sociocultural forces segment of an environmental analysis is concerned with:

- the economic cycles of a society.
- the technological advancements of a society.
- the political dynamics of a society in which the firm does business.
- values, trends, and practices within a society.

Back 169

- values, trends, and practices within a society.

Front 170

The political/legal segment of an environment represents the:

- technological values of different political entities in society.
- study of attitudes that businesses and other organizations have toward government.
- political preferences of different ethnic groups in the society.
- arenas where organizations and interest groups attempt to influence governments and how governments influence them.

Back 170

- arenas where organizations and interest groups attempt to influence governments and how governments influence them.

Front 171

To illustrate interrelationships among different segments of the general environment: The persistence of large U.S. trade deficits (__________) has led to greater demand for protectionist measures, such as trade barriers and quotas (__________). These measures lead to higher prices for U.S. consumers and fuel inflation (__________).

- economic, sociocultural, political/legal
- economic, global, sociocultural
- economic, political/legal, economic
- economic, technological, economic

Back 171

- economic, political/legal, economic

Front 172

Which of the following would be considered part of a firm's general environment?

- Decreased entry barriers.
- Higher unemployment rates.
- Increased competitive intensity.
- Increased bargaining power of the firm's suppliers.

Back 172

- Higher unemployment rates.

Front 173

Which of the following best demonstrates the interrelationships among different segments of the general environment?

- The recession results in several of your competitors cutting prices and intensifying rivalry.
- Government deregulation results in different firms being able to offer the same product as your firm.
- Increased concern for the environment results in legislation that impacts your current packaging.
- A new technology results in the development of a substitute product for your firm's product.

Back 173

- Increased concern for the environment results in legislation that impacts your current packaging.

Front 174

All of the following are important elements of the political/legal segment of the general environment except

- The Americans with Disabilities Act (ADA).
- increases in the federally mandated minimum wage.
- the increased use of Internet technology.
- the deregulation of utilities.

Back 174

- the increased use of Internet technology.

Front 175

The aging of the population of the United States

- is a myth.
- is an important trend in the political and legal environment.
- increases demand for products geared to retirees.
- is an important sociocultural trend.

Back 175

- increases demand for products geared to retirees.

Front 176

Gathering "competitive intelligence"

- is illegal.
- is considered unethical.
- is good business practice.
- minimizes the need to obtain information in the public domain.

Back 176

- is good business practice.

Front 177

Delayed marriages, fewer people in relevant age groups, and rising interest rates dampening demand for houses illustrates

- that the global environment is not as powerful an influence as thought.
- that macroeconomic forces dominate the general environment.
- that more than one segment of the general environment may affect an industry.
- that the competitive environment often has a strong influence on the general environment.

Back 177

- that more than one segment of the general environment may affect an industry.

Front 178

Outcomes of elections, legislation, and judicial court decisions are considered to be components of

- political-legal forces.
- arbitrary forces.
- economic forces.
- None of the above.

Back 178

- political-legal forces.

Front 179

The threat of new entrants is high when there are

- low economies of scale.
- high differentiation among competitors' products and services.
- high switching costs.
- high capital requirements.

Back 179

- low economies of scale.

Front 180

Because the Internet lowers barriers to entry in most industries, it

- increases the threat of new entrants.
- decreases the threat of new entrants.
- makes it easier to build customer loyalty.
- increases supplier power.

Back 180

- increases the threat of new entrants.

Front 181

In Porter's Five Forces model, conditions under which a supplier group can be powerful include all the following except

- readily available substitute products.
- dominance by a few suppliers.
- high differentiation by the supplier.
- lack of importance of the buyer to the supplier group.

Back 181

- readily available substitute products.

Front 182

Product differentiation by incumbents acts as an entry barrier because

- it helps a firm to derive greater economies of scale.
- incumbents will take legal action if new entrants do not differentiate their products.
- new entrants may have to spend heavily to overcome existing customer loyalties.
- new entrants cannot differentiate their products.

Back 182

- new entrants may have to spend heavily to overcome existing customer loyalties.

Front 183

Buyer power will be greater when

- the products purchased are highly differentiated.
- the industry's product is very important to the quality of the buyer's end products or services.
- it is concentrated or purchases large volumes relative to seller sales.
- there are high switching costs.

Back 183

- it is concentrated or purchases large volumes relative to seller sales.

Front 184

Strategic groups consist of

- a group of executives drawn from different companies within an industry that makes decisions on industry standards.
- a group of firms within an industry that decide to collude rather than compete with each other so that they can increase their profits.
- a group of firms within an industry that follow similar strategies.
- a group of top executives who make strategies for a company.

Back 184

- a group of firms within an industry that follow similar strategies.

Front 185

Which of the following statements about strategic groups is false?

- Strategic groups help chart the future directions of firms' strategies.
- Strategic groups are helpful in thinking through the implications of each industry trend for the group as a whole.
- Two assumptions are made: (1) no two firms are totally different, (2) no two firms are exactly the same.
- Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups.

Back 185

- Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups.

Front 186

A large fabricator of building components purchased a steel company to provide raw materials for its production process. This is an example of

- economies of scale.
- backward integration.
- forward integration.
- product differentiation.

Back 186

- backward integration.

Front 187

The bargaining power of suppliers increases as

- switching costs for buyers decrease.
- more suppliers enter the market.
- threat of forward integration by suppliers increases.
- importance of buyers to supplier group increases.

Back 187

- threat of forward integration by suppliers increases.

Front 188

A supplier group would be most powerful when there is/are

- high threat of backward integration by the buyers.
- few available substitute products.
- low differentiation of products supplied.
- many suppliers.

Back 188

- few available substitute products.

Front 189

End users are

- the final consumers in a distribution channel.
- likely to have greater bargaining power because of the Internet.
- usually the C in B2C.
- all of the above.

Back 189

- all of the above.

Front 190

Which is considered a force in the "Five Forces model"?

- The threat of government intervention.
- Recent technological innovation
- Increased deregulation in an industry.
- Rivalry among competing firms.

Back 190

- Rivalry among competing firms.

Front 191

The most intense rivalry results from

- a high level of differentiation.
- numerous equally balanced competitors, slow industry growth, high fixed or storage costs.
- few competitors, slow industry growth, lack of differentiation, high fixed or storage costs.
- numerous equally balanced competitors, manufacturing capacity increases only in large increments, low exit barriers.

Back 191

- numerous equally balanced competitors, slow industry growth, high fixed or storage costs.

Front 192

Incumbent firms may enjoy increased bargaining power because the Internet

- increases channel conflict.
- focuses marketing efforts on end users.
- diminishes the power of many distribution channel intermediaries.
- has reduced the number of wholesalers and distributors.

Back 192

- diminishes the power of many distribution channel intermediaries.

Front 193

Which of the following firms would likely pose the least competitive threat?

- A firm in the same industry and in the nearest strategic group looking to join your group.
- A firm in the same industry and in the same strategic group.
- A competitor to your product where a high switching cost exists.
- A firm that produces substitute goods to your product line.

Back 193

- A competitor to your product where a high switching cost exists.

Front 194

An independent group of suppliers, such as farmers, gather to form a cooperative to sell their products to buyers directly, replacing their former distributor. This is an example of

- threat of substitute products.
- forward integration.
- backward integration.
- threat of entry.

Back 194

- forward integration.

Front 195

The bargaining power of suppliers is enhanced under the following market condition:

- low differentiation of the suppliers' products.
- greater availability of substitute products.
- dominance by a few suppliers.
- no threat of forward integration.

Back 195

- dominance by a few suppliers.

Front 196

Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of personnel. It

- supports mostly support activities but does have some impact on primary activities.
- supports both individual primary and support activities and the entire value chain.
- supports only individual support activities.
- supports only individual primary activities.

Back 196

- supports both individual primary and support activities and the entire value chain.

Front 197

Which of the following lists consists of support activities?

- Customer service, information systems, technology development, and procurement.
- Human resource management, information systems, procurement, and firm infrastructure.
- Human resource management, technology development, customer service, and procurement.
- Human resource management, customer service, marketing and sales, and operations.

Back 197

- Human resource management, information systems, procurement, and firm infrastructure.

Front 198

Value chain analysis occurs in which stage of the strategic management process?

- actions stage
- analysis stage
- decisions stage
- none of the above

Back 198

- analysis stage

Front 199

Value chain analysis is a tool used to

- analyze a firm’s primary and support activity in isolation from influences of the external environment.
- identify the firm’s core competencies in each of the primary activities of the firm.
- understand the parts of the firm’s operation that create value and those that do not.
- analyze a firm’s external environment for value-creating opportunities.

Back 199

- understand the parts of the firm’s operation that create value and those that do not.

Front 200

Activities that contribute to the physical creation of a product or service are

- tertiary activities
- operations activities
- primary activities
- support activities

Back 200

- primary activities

Front 201

___________ are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling.

- Inbound logistics
- Services
- Operations
- Outbound logistics

Back 201

- Outbound logistics

Front 202

In value chain analysis, which of the following would be considered part of a firm's general administration?

- Human resource management.
- Technology development.
- Procurement.
- Information systems.

Back 202

- Information systems.

Front 203

Which of the following is a support activity?

- Technology development.
- Inbound logistics.
- Operations.
- Customer service.

Back 203

- Technology development.

Front 204

Customer service would include

- product distribution.
- product promotion.
- procurement of critical supplies.
- parts supply.

Back 204

- parts supply.

Front 205

Which of the following examples demonstrates how successful organizations manage their primary activities?

- By employing JIT inventory systems, Hewlett Packard has been able to cut lead time from five days to one.
- National Steel improved its efficiency by consolidating, reducing the number of job classifications, and broadening worker responsibilities.
- Motorola has revised its compensation system to reward employees who learn a variety of skills.
- Wal-Mart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response times.

Back 205

- By employing JIT inventory systems, Hewlett Packard has been able to cut lead time from five days to one.

Front 206

A marketing department that promises delivery faster than the production department's ability to produce is an example of a lack of understanding of the

- need to maintain the reputation of the company.
- interrelationships among functional areas and firm strategies.
- synergy of the business units.
- organizational culture and leadership.

Back 206

- interrelationships among functional areas and firm strategies.

Front 207

Activities that contribute to the physical creation of a product or service are

- tertiary activities
- primary activities
- support activities
- operations activities

Back 207

- primary activities

Front 208

Advertising is a __________ activity. Supply of replacement parts is a __________ activity.

- primary; primary
- primary; support
- support; secondary
- support; primary

Back 208

- primary; primary

Front 209

Value is

- the cost incurred by the firm in acquiring the inputs necessary for producing its products
- the sum of total of goods and services produced by an economy during a certain period
- the amount that buyers are willing to pay for what a firm provides them
- the difference between what a firm charges for its product and the amount of satisfaction the buyer derives from consumption of the product

Back 209

- the amount that buyers are willing to pay for what a firm provides them

Front 210

Value chain analysis is concerned with

- the amount buyers are willing to pay for what a firm provides them
- the relationship of total revenue to total costs
- increasing buyers’ perception of the value of what the firm provides
- total revenue

Back 210

- the relationship of total revenue to total costs

Front 211

Which of the following is not an advantage of Just-In-Time inventory systems?

- Reduced raw material storage costs.
- Reduced dependence on suppliers.
- Minimized idle production facilities and workers.
- Reduced work-in-process inventories.

Back 211

- Reduced dependence on suppliers.

Front 212

Which of the following would be most difficult to assess?

- The liquidity position of a firm.
- The legitimacy and reputation of a firm.
- Market share growth.
- The efficiency with which a firm utilizes its assets.

Back 212

- The legitimacy and reputation of a firm.

Front 213

The best measure of a company's ability to meet short-term financial obligations is known as the

- current ratio.
- total asset turnover.
- debt ratio.
- profit margin.

Back 213

- current ratio.

Front 214

How should managers assess changes in their firm's competitive position in its industry during a period of unusual economic growth?

- Compare the firm's financial ratios with ratios of firms in other strategic groups in the industry.
- Compare the firm's financial ratios over the most recent one-year period.
- Compare the financial ratios of all other firms in the firm’s industry—some of whom serve very diverse market segments and have specialized accordingly.
- Compare the financial ratios of firms in the company's strategic group.

Back 214

- Compare the financial ratios of firms in the company's strategic group.

Front 215

Which of these categories of financial ratios is used to measure a company's ability to meet its short-term financial obligations?

- leverage ratios.
- profitability ratios.
- activity ratios.
- liquidity ratios.

Back 215

- liquidity ratios.

Front 216

Ratios that reflect whether or not a firm is efficiently using its resources are known as

- turnover ratios.
- leverage ratios.
- liquidity ratios.
- profitability ratios.

Back 216

- turnover ratios.

Front 217

Strategic management is the pursuit of sustained _________ - performance (financial, survival) in comparison to competitors.

Back 217

competitive advantage

Front 218

One major step of the strategic management process is Analysis, which includes analysis of the _________ and _________.

Back 218

external environment, internal environment

Front 219

What are the two parts of the external environment and what are the tools to analyze each?

Back 219

General environment -> SEPT++
Industry environment -> 5 forces

Front 220

The internal environment [analysis] is concerned with the creation of _________ and the tool used to analyze it is the _________.

Back 220

value, value chain

Front 221

Another step in the strategic management process is decisions (aka _________). There are business-level decisions which answer the _________ question, corporate-level decisions which answer the _________ question, and international decisions which answer the _________ question.

Back 221

formulation, how?, what?, where?

Front 222

Another step in the strategic management process is actions (aka _________). This encompasses organizational _________, _________ governance, _________, and strategic _________.

Back 222

implementation, controls, corporate, structure, leadership

Front 223

4 characteristics of strategy:
1) directed at _________ organization
2) multiple _________ (who are _________/_________ by outcomes; _________/_________ resources)
3) _________/_________
4) _________ and _________ -> tradeoff

Back 223

1) overall
2) stakeholders, affect/affected, provide withhold
3) short-term/long-term
4) efficiency and effectiveness

Front 224

What's the difference between efficiency and effectiveness?

Back 224

Efficiency is what resources we expend and effectiveness is what we get done. There are tradeoffs between how much we get done and the way we use the resources to get things done.

Front 225

Relationship among management, shareholders, & board of directors

Back 225

corporate governance

Front 226

Stakeholder management
1) _________ market - participate in capital mkts.
* stakeholders: stockholders (shareholders)
* lenders (buy & sell equity/debt)
2) _________ market
*customers
*suppliers
*community
3)_________
*employees
*managers

Back 226

capital, product, organization

Front 227

The belief that a firm has a greater responsibility than producing a profit is known as _________.

Back 227

corporate social responsibility

Front 228

What are the three definitions of strategy?

Back 228

hierarchical, eclectic, matching

Front 229

portion of the general environment that looks at values, beliefs

Back 229

sociocultural

Front 230

portion of the general environment that looks at indicators of production, distribution, consumption

Back 230

economic

Front 231

portion of the general environment that looks at actions of government; influence on government

Back 231

political/legal

Front 232

portion of the general environment that looks at knew knowledge in regards to products and/or processes

Back 232

technological

Front 233

portion of the general environment that looks at characteristics of people (characteristics will influence how much $ people spend, as well as what they spend it on)

Back 233

demographics

Front 234

portion of the general environment that looks at the fact that national borders are permeable

Back 234

global

Front 235

Competitive intelligence allows us to _________.

Back 235

forecast

Front 236

Taking in info is known as _________. Reacting to that info to look for trends/patters is known as _________. The combination of these two is known as _________, which allows us to _________.

Back 236

scanning, monitoring, competitive intelligence, forecast

Front 237

The general environment has a [DIRECT/INDIRECT] impact on firm.

Back 237

indirect

Front 238

The industry environment has a [DIRECT/INDIRECT] impact on firm.

Back 238

direct

Front 239

group of firms producing similar products

Back 239

industry

Front 240

The threat of new entrants involves doesn't strictly involve _________, but may include _________ firms venturing into new industries.

Back 240

start-ups, existing

Front 241

What is the sequence of activities in a firm's value chain?

Back 241

1. inbound logistics
2. operations
3. outbound logistics
4. marketing/sales
5. service
----all activities above are primary activities----
6. procurement
7. general administration
8. human resource management
9. technology development
----#'s 6-9 are support activities----

Front 242

When examining the industry environment, identify _________ competing on similar dimensions, which is known as _________ grouping.

Back 242

subgroups, strategic

Front 243

Financial ratios are usually better than absolute measures because they standardize for _________.

Back 243

size

Front 244

Which definition of strategy is top management team centered, has performance targets as objectives (market share, ROI/ROS/ROA), its strategies are means, and tactics are actions/policies?

Back 244

Hierarchical

Front 245

Which definition of strategy has strengths of: emphasizes link to performance, multiple levels of analysis (analogous to organization), and action oriented?

Back 245

Hierarchical

Front 246

Which definition of strategy has weaknesses of: underdeveloped notion of environment; focused on routine, formalized, bureaucratic, and organizations as mechanistic; fails to give significant guidance to strategic manages, emphasizes intention, and focuses on process rather than content?

Back 246

Hierarchical

Front 247

Which definition of strategy involves: Plan (intention), Ploy ("gambits"), Pattern (emergence of consistency), Position: environment, and Perspective: managerial perception & cognition?

Back 247

Eclectic

Front 248

Which definition of strategy has strengths of: wide range of applicable phenomena, subjective and qualitative view of formulation and implementation (idea & process) and is action oriented?

Back 248

Eclectic

Front 249

Which definition of strategy has weaknesses of: may be too broad - fails to exclude, fails to prescribe/provide practice guidance, less rational, & programmed?

Back 249

Eclectic

Front 250

Which definition of strategy is the dominant view?

Back 250

Matching

Front 251

The _________ view of strategy says that strategy is a pattern of resource allocation enabling firm to improve performance?

Back 251

matching

Front 252

The content of the _________ view of strategy includes: SWOT/WOTS-UP/TWOS: responses to O&T: neutralize threats and exploit opportunities while building strengths and avoiding or addressing weaknesses?

Back 252

matching

Front 253

Which definition of strategy has strengths of: recognizes environmental impact, recognizes internal impact, action-oriented (resource allocation) & emphasizes performance criteria?

Back 253

Matching

Front 254

Which definition of strategy has weaknesses of: emphasizes intention & little prescription?

Back 254

Matching

Front 255

Strengths of hierarchical definition include:
- emphasizes link to _________
- multiple levels of _________ (analogous to organization)
- _________ oriented

Back 255

performance, analysis, action

Front 256

Strengths of the eclectic definition include:
- wide range of applicable _________ re: performance
- _________ and _________ view of formulation and implementation (idea and process)
- _________ oriented

Back 256

phenomena, subjective, qualitative, action

Front 257

Strengths of the matching definition include:
- recognizes _________ impact
- recognizes _________ impact
- _________-oriented (resource allocation)
- emphasizes _________ criteria

Back 257

environmental, internal, action, performance

Front 258

Weaknesses of the hierarchical definition include:
- underdeveloped notion of _________
- focus on _________, formalized, bureaucratic strategy and organizations as _________
- fails to give significant _________ to strategy managers
- emphasizes _________
- focus on _________ rather than _________

Back 258

environment,
routine, mechanistic,
guidance,
intention,
process, content

Front 259

Weaknesses of the eclectic definition include:
- may be too _________; fails to exclude
- fails to _________; provide practical guidance
- less _________
- _________

Back 259

broad, prescribe, rational, programmed

Front 260

Weaknesses of the matching definition (dominant view) include:
- emphasizes _________
- little _________

Back 260

intention, prescription

Front 261

Utility - Price = _________

Back 261

consumer surplus

Front 262

Price - Costs of production = _________
also _________ value

Back 262

profit margin
firm

Front 263

Utility - costs of production = _________ created

Back 263

value

Front 264

Threat of new entrants is high when economies of scale are _________.

Back 264

low

Front 265

Threat of new entrants is high when product differentiation is _________.

Back 265

low

Front 266

Threat of new entrants is high when capital requirements are _________.

Back 266

low

Front 267

Threat of new entrants is high when switching costs are _________.

Back 267

low

Front 268

Threat of new entrants is high when incumbent's control of distribution channels is _________.

Back 268

low

Front 269

Threat of new entrants is high when incumbent's proprietary knowledge is _________.

Back 269

low

Front 270

Threat of new entrants is high when incumbent's access to raw materials is _________.

Back 270

low

Front 271

Threat of new entrants is high when incumbent's access to government subsidies is _________.

Back 271

low

Front 272

Power of buyers is high when concentration of buyers relative to suppliers is _________.

Back 272

high

Front 273

Power of buyers is high when switching costs are _________.

Back 273

low

Front 274

Power of buyers is high when product differentiation of suppliers is _________.

Back 274

low

Front 275

Power of buyers is high when threat of backward integration by buyers is _________.

Back 275

high

Front 276

Power of buyers is high when extent of buyer's profits is _________.

Back 276

low

Front 277

Power of buyers is high when importance of the supplier's input to quality of buyer's final product is _________.

Back 277

low

Front 278

Power of suppliers is high when concentration relative to buyer industry is _________.

Back 278

high

Front 279

Power of suppliers is high when availability of substitute products is _________.

Back 279

low

Front 280

Power of suppliers is high when importance of customer to the supplier is _________.

Back 280

low

Front 281

Power of suppliers is high when differentiation of the supplier's products and services is _________.

Back 281

high

Front 282

Power of suppliers is high when switching costs of the buyer are _________.

Back 282

high

Front 283

Power of suppliers is high when threat of forward integration by the supplier is _________.

Back 283

high

Front 284

Threat of substitute products is high when the differentiation of the substitute product is _________.

Back 284

high

Front 285

Threat of substitute products is high when rate of improvement in price-perfromance relationship of substitute product is _________.

Back 285

high

Front 286

Intensity of competitive rivalry is high when number of competitors is _________.

Back 286

high

Front 287

Intensity of competitive rivalry is high when industry growth rate is _________.

Back 287

low

Front 288

Intensity of competitive rivalry is high when fixed costs are _________.

Back 288

high

Front 289

Intensity of competitive rivalry is high when storage costs are _________.

Back 289

high

Front 290

Intensity of competitive rivalry is high when product differentiation is _________.

Back 290

low

Front 291

Intensity of competitive rivalry is high when switching costs are _________.

Back 291

low

Front 292

Intensity of competitive rivalry is high when exit barriers are _________.

Back 292

high

Front 293

Intensity of competitive rivalry is high when strategic stakes are _________.

Back 293

high

Front 294

the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages

Back 294

strategic management

Front 295

the ideas, decisions, and actions that enable a firm to succeed

Back 295

strategy

Front 296

a firm's resources and capabilities that enable it to overcome the competitive forces in its industry(ies)

Back 296

competitive advantage

Front 297

individuals, groups, and organizations who have a stake in the success of the organization, including owners (shareholders in a publicly held corporation), employees, customers, suppliers, and the community at large

Back 297

stakeholders

Front 298

tailoring actions to the needs of an organization rather than wasting effort, or "doing the right thing"

Back 298

effectiveness

Front 299

performing actions at a low cost relative to a benchmark, or "doing things right"

Back 299

efficiency

Front 300

strategy analysis, strategy formulation, and strategy implementation

Back 300

strategic management process

Front 301

strategy in which organization decisions are determined only by analysis

Back 301

intended strategy

Front 302

strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences

Back 302

realized strategy

Front 303

study of firms' external and internal environments, and their fit with organizational vision and goals

Back 303

strategy analysis

Front 304

decisions made by firms regarding investments commitments, and other aspects of operations that create and sustain competitive advantage

Back 304

strategy formulation

Front 305

actions made by firms that carry out the formulated strategy, including strategic controls, organizational design, and leadership

Back 305

strategy implementation

Front 306

the relationship among various participants in determining the direction and performance of corporations. The primary participants are (1) the shareholders, (2) the management (led by the CEO), and (3) the board of directors

Back 306

corporate governance

Front 307

a firm's strategy for recognizing and responding to the interests of all its salient stakeholders

Back 307

stakeholder management

Front 308

the expectation that businesses or individuals will strive to improve the overall welfare of society

Back 308

social responsibility

Front 309

a set of organizational goals that include both the purpose of the organization, its scope of operations, and the basis of its competitive advantage

Back 309

mission statement

Front 310

surveillance of a firm's external environment to predict environmental changes and detect changes already under way

Back 310

environmental scanning

Front 311

a firm's analysis of the external environment that tracks the evolution of environmental trends, sequences of events, or streams of activities

Back 311

environmental monitoring

Front 312

a firm's activities of collecting and interpreting data on competitors, defining and understanding the industry, and identifying competitors' strengths and weaknesses

Back 312

competitive intelligence

Front 313

the development of plausible projections about the direction, scope, speed, and intensity of environmental change

Back 313

environmental forecasting

Front 314

a framework for analyzing a company's internal and external environment and that stands for strengths, weaknesses, opportunities, and threats

Back 314

SWOT analysis

Front 315

factors external to an industry, and usually beyond a firm's control, that affect a firm's strategy

Back 315

general environment

Front 316

genetic and observable characteristics of a population, including the levels and growth of age, density, sex, race, ethnicity, education, geographic region, and income

Back 316

demographic segment of the general environment

Front 317

the values, beliefs, and lifestyles of a society

Back 317

sociocultural segment of the general environment

Front 318

how a society creates and exercises power, including rules, laws, and taxation policies

Back 318

political/legal segment of the general environment

Front 319

innovation and state of knowledge in industrial arts, engineering, applied sciences, and pure science; and their interaction with society

Back 319

technological segment of the general environment

Front 320

characteristics of the economy, including national income and monetary conditions

Back 320

economic segment of the general environment

Front 321

influences from foreign countries including foreign market opportunities, foreign-based competition, and expanded capital markets

Back 321

global segment of the general environment

Front 322

a group of firms that produce similar goods or services

Back 322

industry

Front 323

factors that pertain to an industry and affect a firm's strategies

Back 323

competitive environment

Front 324

a tool for examining the industry-level competitive environment, especially the ability of firms in that industry to set prices and minimize costs

Back 324

Porter's five-forces model of industry competition

Front 325

the possibility that the profits of established firms in the industry may be eroded by new competitors

Back 325

threat of new entrants

Front 326

the degree that a product has a strong brand loyalty or customer loyalty

Back 326

product differentiation

Front 327

one-time costs that a buyer/supplier faces when switching from one supplier/buyer to another

Back 327

switching cost

Front 328

decreases in cost per unit as absolute output per period increases

Back 328

economies of scale

Front 329

the threat that buyers may force down prices, bargain for higher quality or more services, and play competitors against each other

Back 329

bargaining power of buyers

Front 330

the threat that suppliers may raise prices or reduce the quality of purchased goods and services

Back 330

bargaining power of suppliers

Front 331

the threat of limiting the potential returns of an industry by placing a ceiling on the prices that firms in that industry can profitably charge without losing too many customers to substitute products

Back 331

threat of substitute products and services

Front 332

products and services outside the industry that serve the same customer needs as the industry's products and services

Back 332

substitute products and services

Front 333

the threat that customers will switch their business to competitors within the industry

Back 333

intensity of rivalry among competitors in an industry

Front 334

clusters of firms that share similar strategies

Back 334

strategic groups

Front 335

a strategic analysis of an organization that uses value-creating activities

Back 335

value-chain analysis

Front 336

sequential activities of the value chain that refer to the physical creation of the product or service, its sale and transfer to the buyer, and its service after sale, including inbound logistics, operations, outbound logistics, marketing and sales, and service

Back 336

primary activities

Front 337

activities of the value chain that either add value by themselves or add value through important relationships with both primary activities and other support activities; including procurement, technology development, human resource management, and general administration

Back 337

support activities

Front 338

receiving, storing, and distributing inputs of a product

Back 338

inbound logistics

Front 339

all activities associated with transforming inputs into the final product form

Back 339

operations

Front 340

collecting, storing, and distributing the product or service to buyers

Back 340

outbound logistics

Front 341

activities associated with purchases of products and services by end users and the inducements used to get them to make purchases

Back 341

marketing and sales

Front 342

function of purchasing inputs used in the firm's value chain, including raw materials, supplies, and other consumable items as well as assets such as machinery, laboratory equipment, office equipment, and buildings

Back 342

procurement

Front 343

activities associated with the development of new knowledge that is applied to the firm's operations

Back 343

technology development

Front 344

activities involved in the recruiting, hiring, training, development and compensation of all types of personnel

Back 344

human resource management

Front 345

general management, planning, finance, accounting, legal and government affairs, quality management, and information systems; activities that support the entire value chain and not individual activities

Back 345

general administration

Front 346

a technique for measuring the performance of a firm according to its balance sheet, income statement, and market valuation

Back 346

financial ratio analysis