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bus policy test 2
| Question | Answer |
|---|---|
| Actions firms take to gain competitive advantage in a single market or industry | business level strategy |
| Business-level strategy choices matter because long-term performance / competitive advantage is linked to | a firms strategy |
| A successful business-level strategy must match external opportunities with | internal strengths |
| An integrated set of actions taken to produce goods or services at the lowest cost, with features that are acceptable to customers, relative to that of competitors | cost leadership strategy |
| processes used to produce and distribute goods/services may become obsolete due to competitors’ innovations | obsolescence |
| : too much focus on cost reductions/process efficiencies may cause the cost leader to overlook needed differentiation features | cost reductions |
| competitors, using their own strengths and capabilities, may successfully imitate the cost leader’s value chain configuration | imitation |
| An integrated set of actions taken to produce goods or services that customers perceive as being different in ways that are important to them | differentiation strategy |
| between the differentiator’s and the cost leader’s products becomes too large | price differential |
| : Differentiation ceases to provide value for which customers are willing to pay | value diminished |
| narrows customers perceptions of the value of differentiated features | experience |
| replicate differentiated features of the firms products | counterfeit goods |
| An integrated set of actions taken to produce goods or services that serve the needs of a particular customer group in an industry (specific, smaller segments rather than entire market | focused strategies |
| a focusing firm may be “outfocused” by its competitors | outfocused |
| a large competitor may decide that the market segment served by the focus strategy firm is attractive and worthy of competitive pursuit | competition |
| customer preferences in the niche market may change to more closely resemble those of the broader market | changing preferences |
| Efficiently produce products with differentiated attributes | integrated cost leadership/differentiation strategy |
| Products do not offer sufficient value in terms of either low cost or differentiation. Cost structure is not low enough for attractive pricing of products; products not sufficiently differentiated to create value for target customer | stuck in the middle |
| Actions firms take to gain competitive advantages by operating in multiple markets or industries simultaneously | corporate level strategy |
| concentrates on its primary line of business | concentration |
| : moving into new geographic/customer markets | market development |
| developing new products and/or significantly improving existing products | product development |
| becoming its own supplier or distributor through acquisition; vertical movement up or down the value chain | vertical |
| acquisition of competitors; horizontal movement at the same point in the value chain | horizontal |
| growing into new business areas/new industries | diversification |
| a firm is related through its diversification when its businesses shares links across | products, technologies, and distribution channels |
| similar to existing busiiness/strategic fit | related diversification |
| different from existing business | unrelated diversification |
| two firms agree to integrate their operations on a relatively co-equal basis | merger |
| one firm buys a controlling, 100% interest in another firm with the intent of making the acquired firm a subsidiary business | acquisition |
| a strategy through which a firm changes its set of businesses or financial structure | restructuring |
| reduction in the number of a firm’s employees or operating units, but it does not change the essence of the business. tactical,short term | downsizing |
| divestiture, spinoff, or some other means of eliminating businesses that are unrelated to a firm’s core business. strategic/long term | downscoping |
| a party buys all of the assets of a business, financed largely with debt, and takes the firm private | leveraged buyout |
| when the CEO is also serving on the board of directors. not a good thing-conflict of interest | CEO duality |
| preselect and shape the skills of tomorrows leaders | managerial succession |
| opportunities for managerial positions to be filled from within the firm | internal managerial labor market |
| opportunities for managerial positions to be filled by candidates from outside the firm | external managerial labor market |
| the ability to anticipate, envision, maintain flexibility, and empower others to create strategic change | strategic leadership |
| knowledge and skills of a firm’s entire workforce | human capital |
| involves relationships inside and outside the firm that help the firm accomplish tasks and create value for customers and shareholders | social capital |
| consists of a complex set of ideologies, symbols, and core values that are shared throughout the firm | organizational culture |
| framework to evaluate if firms have achieved the appropriate balance among the strategic and financial controls to attain the desired level of firm performance | balanced scorecard |
| Organizations are no longer constrained by national borders; therefore, strategic decisions regarding international expansion can be considered. | international context |
| the values and attitudes shared by individuals from a specific country that shape their behavior and their beliefs about what is important | national culture |
| – an organization varies its strategies according to the country in which it does business | multi-country approach |
| an organization keeps its strategies the same in all countries in which it does business | global approach |
| – a business makes products in its home country, transports them to another country for sale. simpliest way | exporting |
| an agreement is formed that allows a foreign company the right to manufacture or sell a firm’s products for a negotiated fee | licensing |
| a firm collaborates with another company in order to enter ore or more international markets | strategic alliances |
| a firm from one country acquires a stake in or purchases all of a firm located in another country | cross-border acquisition |
| integrates both muliti-country and global approaches together to meet the needs of the local responses and to keep the same strategies in all countries | transnational approach |
| build a business from the ground up in new country | new wholly owned subsidiary |
| small business tend to be more _________ than large business | more flexible and more innovative |
| an organization whose purpose is to provide some service or good with no intention of earning a profit: public sector, educational, charitable and religious | not for profit |
| A ________- level strategy is a firm’s theory about competitive advantage in one business, and its __________- level strategy is its theory about competitive advantage across multiple busi nesses. | business and corporate |
| If products or services are perceived as being different in a way that is valued by customers, even if there is no physical differentiation, then product differentiation exists. | true |
| What type of strategy is generally characterized by the following:Relatively standardized products Features acceptable to many customers, Lowest competitive price | cost leadership strategy |
| A vertical acquisition refers to the acquisition of a competitor at the same point in the value chain. | false |
| Wal- Mart exemplifies a firm pursuing a product -differentiation strategy and Victoria’s Secret exemplifies a firm pu rsuing a cost -leadership strategy. | false |
| Effective use of a business-level strategy allows a firm to reduce the five main industry threats. | true |
| refers to divestiture, spinoff, or some other means of eliminating businesses that are unrelated to a firm’s core businesses | downscoping |
| Krystal’s burger business makes up about 90% of their total revenue, and their airplane hanger business makes up the remaining 10%. What type of diversification does this describe? | dominant business |
| Competitive advantage is the final step in the strategic management process for an entrepreneurial venture. | true |
| A firm successfully implementing a differentiation strategy would expect | to charge premium prices. |
| What type of international strategy is characterized by the following: Seeks to develop a low cost advantage, Emphasis placed on globally integrating operations rather than on local market responsiveness, Products can have minor variations | global approach |
| The integrated cost leadership/differentiation strategy is superior to the other business-level strategies. | false |
| What term describes the situation where a firm’s cost structure is not low enough for attractive pricing of products, and products are not sufficiently differentiated to create value for target custome | stuck in the middle |
| In order, what are the four steps in the strategic management process that lead to competitive advantage? | mission and objectives, external and internal ananlysis, strategic choice, and strategy implenmentation |
| List 3 restructuring strategies. | downsizing, downscoping, and leveraged buyout |
| List 3 concentration strategies. | market development, product development, and market/product development |
| We discussed 6 problems to achieving a cquisition success. List 4 of them. | too large, large debt, too much diversification, and integration difficulties |
| special type of acquisition strategy in which the target firm did not solicit the acquiring firms bid | takeover |
| individuals with varied functional backgrounds, experiences, and education | heterogeneous team |
Created by:
rcu10