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13 Cards in this Set
- Front
- Back
Business-level Strategy
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actions firms take to gain competitive advantage in single market or industry
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Corporate-level Strategy
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actions firms take to gain competitive advantage by operating in multiple markets or industries
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Cost leadership biz strat
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gain advantage by reducing costs below all competitors
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sources of cost leadership
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economies of scale, diseconomies of scale, experience/learning curve, access to low-cost inputs, technological advantages and policy choices
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economies of scale
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increase in firm size associated with lower costs (average cost per unit decreases) (examples: large cost saving machines, employee specialization, spread of overhead)
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diseconomies of scale
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average cost per unit begin to rise (firm becomes too complex, employees become unmotivated because jobs become more simplistic/specific, expanding to global market and gaining more specific costs for that expansion)
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learning curve
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the more you do something the lower it starts to cost per unit, acquire market share over time
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technological hardware
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machines and robots
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technological softwarte
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quality of relations between labor and management
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low cost policy choices
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what product mix to provide, simple standardized products
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economics of learning curve
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the higher cummulation of total products output the lower the cost per unit (airplanes cost dropped 20% everytime cummulative production doubled)
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Cost advantage VRIO?
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Rare (normally if first to produce more likely to have early economies of scale, when most firms operate on small basis won't have economies of scale) Imitable (economies of scale easy to duplicat, learning curve can be hard to duplicat, technology can be bought), access to low cost units can be hard to duplicate, organized (management motivates employees to reduce costs)
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U-form structure
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everyone reports to CEO and he looks over entire breadth of companhy
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