• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

Card Range To Study



Play button


Play button




Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

49 Cards in this Set

  • Front
  • Back
Organizational Analysis
concerned with identifying and developing an organization's resources and competencies
an organizations assets and thus are the building blocks of the organization.
Tangible assets
plant, equipment, finances and location
Human Assets
employees, their skills, and motivation
Intangible assets
technology (patent and copyrights), culture, and reputation
a corporation's ability to exploit its resources
a cross-functional integration and coordination of capabilities
ex) competency in new product development in one division of a corporation may be the the consequence of integrating management of information systems capabilities, marketing capabilities, R&D capabilities, and production capabilities within the division.
core competency
a collection of competencies that cross divisional boundaries, is wide spread throughout the corporation and is something that the corporation does exceedingly well
ex) new product development is a core competency if it goes beyond one division.
ex) Avon door to door selling
distinctive competency
core competencies that are superior to those of the competition.
ex) GE distinctive competency in management development
the rate at which a firm's underlying resources, capabilities, or core competencies depreciate or become obsolete.
the rate at which a firm's underlying resources, capabilities, or core competencies can be duplicated by others
the speed at which other firms under the relationship of resources and capabilities support a successful strategy.
ex) gillette and dominance in the razor market
the ability of competitors to gather the resources and capabilities necessary to support a competitive challenge
ex) french wine
the ability of competitors to use duplicated resources and capabilities to imitate the other firm's success
explicit knowledge
knowledge that can be easily articulated and communicated. competitive intelligence activities can quickly identify and communicate
tacit knowledge
knowledge that is not easily communicated because it is deeply rooted in employee experience or in the company's culture. it is much more difficult for competitors to imitate
Business models
a company's method for making money in the current business environment. it includes the key structural and operational characteristics of a firm- how it earns revenue and makes a profit
5 elements of a business model
1) who it serves
2) what it provides
3) how it makes money
4) how it differentiates/sustains competitive advantage
5) how it provides its product/service
customer solutions model
ex) IBM uses this model to make money not by selling IBM products, but by selling its expertise to improve its customer's operations. This is a consulting model.
multi-component system
ex) Gillete invented this classic model to sell razors at break even pricing in order to make money on higher margin razor blades. HP does the same thing with printers and printer cartridges
- the product is thus a system, not just one product, with one component providing most of the profits
advertising model
similar to the multi-component system/installed base model, this model offers its basic product free in order to make money on advertising. Originating in the newspaper industry, this model is used heavily in commercial radio and television. Internet based firms, such as Google, offer free services to users in order to expose them to the advertising that pays the bills.
profit pyramid model
ex) GM offers a full line of automobiles in order to close out any niches where a competitor might find a position. The key is to get customers to buy in at the low priced, low margin entry point and move up to high priced, high margin products where the company makes its money
blockbuster model
in some industries, such as pharmaceuticals and motion picture studios, profitability is driven by a few key products. The focus is on high investments in a few products with high potential payoffs- especially if they can be protected by patents
profit multiplier model
the idea of this model is to develop a concept that may or may not make money on its own, through synergy, can spin off many profitable products.
ex) Walt Disney invented this concept by using cartoon characters to develop high margin theme parks, merchandise, and licensing opportunities
Simple Structure
has no functional or product categories and is appropriate for a small, entreprenuer-dominated company with one or two product lines that operates in a reasonably small, easily identifiable market niche. employees tend to be generalists and jacks of all trades. This is a stage 1 company
Functional structure
appropriate for a medium sized firm with several product lines in one industry. employees tend to be specialist in the business functions that are important to that industry, such as manufacturing, marketing, finance, and human resources. This is a second stage company.
Divisional structure
appropriate for a large corporation with many product lines in several related industries. employees tend to be functional specialists organized according to product/market distinctions. Management attempts to find some synergy among divisional activities through the use of committees and horizontal linkages.
Strategic business units
divisions or groups of divisions composed of independent product-market segments that are given primary responsibility and authority for the management of their own functional areas. SBU's must have:
1) a unique mission
2) identifiable competitors
3) external market focus
4) control of its business functions
conglomerate structure
appropriate for a large corporation with many product lines in several unrelated industries.
market position
refers to the selection of specific areas for marketing concentration and can be expressed in terms of market, product, and geographic locations.
marketing mix
the particular combination of key variables under a corporation's control that can be used to affect demand and to gain competitive advantage
a name given to a company's product which identifies that item in the mind of consumer
corporate brand
a type of brand in which the company's name serves as the brand
corporation's reputation
-stakeholders' perception of a corporation's ability to produce quality goods
-a corporation's prominence in the minds of stakeholders
financial leverage
-ratio of total debt to total assets
-describe how the debt is used to increase the earnings available to common shareholders
-greater leverage has a positive (negative) impact on performance for firms in stable (dynamic) environments
capital budgeting
the analyzing and ranking of possible investments in fixed assets in terms of additional outlays and receipts that will result from each investment
hurdle rate
criteria for the purpose of strategic decision making
ex) years to pay pack investment , rate of return, or time to break even point.
R&D intensity
spending on R&D as a percentage of sales revenue
- means of gaining market share in Global competition
- corporations should spend at a normal rate for that particular industry unless its strategic plan calls for unusual expenditures
technology competence
the development and use of innovative technology
-the corp should make a consistent research effort and should be proficient in managing research personnel and integrating their innovations into its day to day operations
technology transfer
the process of taking new technology from the lab to the marketplace.
basic R&D
-focuses on theoretical problems
-patents and research publications
product R&D
concentrates on marketing and is concerned with product or product packaging improvements
engineering R&D
concerned with engineering, concentrating on quality control, and the development of design specifications and improved production and equipment
technology discontinuity
when a technology cannot be used to enhance current technology, but substitutes for the technology to yield better performance
intermittent systems
item is normally processed sequentially but the work and sequence of the process vary
-ex)auto body repair shop
continuous systems
work is laid out in lines on which products can be continuously assembled or processed
ex) automobile assembly line
operating leverage
impact of a specific change in sales volume on net operation income
-advantage of high operating leverage: once the firm reaches break even, its profits rise faster than do those of less automated firms having lower leverage
-a firm with high operating leverage is likely to suffer huge losses during a recession
experience curve (learning curve)
unit production costs decline by some fixed percentage each time the total accumulated volume of production units doubles.
flexible manufacturing for mass customization
use of large, continuous, mass production facilities to take advantage of experience-curve economies has recently been criticized.
-Computer assisted design
-computer assisted manufacturing
-robot technology means that learning times are shorter and products can be economically manufactured in small, customized batches in a process called mass customization.