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48 Cards in this Set
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An acronym for the assessment of the external and internal environments of the business corporation in the process of strategy formulation/strategic planning is |
SWOT |
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A SFAS Matrix differs from the EFAS and IFAS Tables by adding a new column called |
Duration |
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A corporation's specific competitive role, which is so well-suited to the firm's internal and external environment that other corporations are NOT likely to challenge or dislodge it, is called a |
Propitious niche |
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The technique that illustrates how management can match the external opportunities and threats with its strengths and weaknesses to yield four sets of strategic alternatives is called a (an) |
TOWS Matrix |
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Business Strategy focuses on |
improving the competitive position of a corporation's products or services within a specified market segment. |
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According to Porter, the competitive strategy that applies to the ability of the corporation or its business unit to design, produce, and market a comparable product more efficiently than its competitors is called |
lower cost |
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According to Porter, the competitive strategy that applies to the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service is called |
differentiation |
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According to Porter, the term that applies to the breadth of a company's target market is called |
competitive scope |
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When lower cost and differentiation strategies have a narrow focus on a market niche they are simply called |
cost focus and differentiation tools |
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Which of Porter's competitive strategies recommends that a company emphasize a particular buyer group or geographic market and attempts to serve only this niche market in order to be more efficient? |
cost focus |
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Which of Porter's competitive strategies concentrates on a particular buyer group, product line segment, or geographic market so that a company can serve its market more effectively? |
differentiation focus |
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According to Porter, a business unit in a competitive marketplace with no competitive advantage is |
stuck on the middle |
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Midamar Corporation, the maker of halal foods, successfully follows a strategy of |
differentiation focus |
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Focus strategies will likely predominate when many small and medium-sized local companies compete for relatively small shares of the total market in a(n) |
fragmented industry |
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As an industry matures while overcoming fragmentation and becomes dominated by a small number of large companies, it tends to become a(n) |
consolidated industry |
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A tactic is defined by the text as |
a specific operating plan specifying how a strategy is to be implemented in terms of how, when, and where it is to be put into action. |
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Which offensive tactic utilizes a head-to-head approach with the firm's competitor by matching every category of competition from price to promotion to distribution channel? |
frontal assault |
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Which offensive tactic advocates attacking a part of the market where the competitor is weak? |
flanking maneuver |
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Which offensive tactic proposes an indirect approach against the established competitor such as changing the rules of the game? |
bypass attack |
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Which defensive tactic acts to block a challenger's logical avenues of attack such as exclusive agreements with distributors or an increase scale economies to reduce unit costs? |
raise structural barriers |
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The kind of strategic alliance in which there is a partnership of similar companies in similar industries who pool their resources to gain a benefit that is too expensive to develop alone is the |
mutual service consortia |
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The kind of strategic alliance in which a company forms a strong and close long-term relationship for mutual advantage with a key supplier or distributor is the |
value chain partnership |
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Which of the following is NOT a reason for forming a strategic alliance? |
develop secret proprietary technology |
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Which strategy specifies the firm's overall direction in terms of its general orientation toward growth, the industries or markets in which it competes, and the manner in which it coordinates activities and transfers resources among business units? |
corporate |
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Which kind of corporate strategy deals with the firm's overall orientation toward growth? |
directional strategy |
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Which kind of corporate strategy deals with the industries or markets in which the firm competes through its products and business units? |
portfolio strategy |
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Which kind of corporate strategy deals with the manner in which the firm coordinates activities and transfers resources and cultivates capabilities among product lines and business units? |
parenting strategy |
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Which is the opposite of a vertical growth strategy? |
outsourcing |
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Which one of the following strategies is most frequently used in corporations? |
growth |
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A disadvantage of vertical growth is that it |
creates exit barriers |
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A firm's expansion into other geographic locations and/or increasing the range of products and services offered to current markets is called |
horizontal growth |
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Adding a related or complementary product to a corporation's business units is called |
concentric diversification |
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Growth through diversification out of an industry into an unrelated industry is called |
conglomerate diversification |
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which international entry strategy involves constructing a manufacturing facility for a fee |
turnkey operation |
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Which international entry strategy involves building a manufacturing facility and distribution system from scratch? |
green-field development |
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Which strategy is most appropriate as a temporary strategy to enable a corporation to consolidate its resources after prolonged rapid growth in an industry now facing an uncertain future? |
pause strategy |
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Which strategy is descriptive of a corporation in a mature industry facing a drop in its attractiveness, opting to decrease short term discretionary expenses to maintain profits at a certain level? |
profit strategy |
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which strategy invloves giving up management of the firm to the courts |
bankruptcy |
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What is a turnaround strategy? |
Emphasizes improving operational efficiency and is appropriate when a corporation's problems are pervasive, but not yet critical. |
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In the Boston Consulting Group's growth-share matrix, the relative competitive position of a product, division, or corporation is defined as |
its market share divided by that of largest other competitor |
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The growth share matrix of Boston Consulting Group suggest that the excess cash being generated by "cash cows" should be used to fund |
"question marks" |
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New products which are typically introduced in a fast growing industry are called |
question marks |
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According to BCG growth share matrix, the key to success is |
market share |
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Which of the following is defined by GE as one of the variables forming business strength/competitive position? |
market share |
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Which of the following is NOT one of the advantages of portfolio analysis? |
It provides the basis for impartial objectivity from which to make decisions. |
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Corporate parenting generates corporate strategy by focusing on |
the core competencies of the parent corporation and on the value created from the relationship between the parent and its units. |
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A corporate strategy that cuts across divisional boundaries to build synergy across business units to improve the competitive positon of one or more business units is called |
horizontal strategy |
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Business firms that compete with each other not only in one business unit, but a number of related business units are said to be engaging in |
multipoint competition |
