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Strategic Management 1-3
Strategic Management Chapters 1-3 plus Cases
25
Management
Undergraduate 3
06/08/2011

Additional Management Flashcards

 


 

Cards

Term
Strategy
Definition
is a theory about how to gain competitive advantages.
Term
Describe Strategic Management Process
Definition

Book Figure 1.1 shows.

Missions->Objectives->External and Internal Analysis->Strategic Choice->Implementation->Advantages

In the Lecture Prof. put Objectives after Strategic Choice which makes a little sense.

Term

Define and Provide 2 Examples of:

 

Business Level Strategies

Definition

 

Gain advantage in a single market or industry.

Cost Leadership

Product Differentiation

Term

Define and provide examples of:

 

Corporate Level Strategies

Definition

 

 

Gain advantage in multiple markets or industries.

Vertical Integration

Diversification

Strategic Alliances

Mergers and Acquisitions

Global Strategies

Term

 

Define competitive advantage and explain its relationship to economic value creation.

Definition

Competitive Advantage is when a company can create more economic value than rivals.

Economic Value is the difference between perceived benefits gained by a customer and the full costs of the product or service.

Term

 

Describe two different measures of competitive advantage

Definition

Accounting Performance - Use ratios and analytics as a measure of competitive advantage.

Economic Performance - Compare WACC to other firms and industries as a measure of competitive advantage.

Term

 

Explain the difference between emergent and intended strategies

Definition

 

Intended Strategies begin well defined, when strategies need to be adjusted they are Emergent.

Term
What are the dimensions of the general environment?
Definition

 

Technological Change

Demographic Trends

Cultural Trends

Economic Climate

Legal and Political Conditions

Specific International Events

Term
Described the SCP model.
Definition

Structure

Conduct

Performance

Each drives the next.

Term
List Porter's Five Forces.
Definition
Entrants, Suppliers, Buyers, Rivals, Substitutes (and sometimes complements).
Term
What are the four generic industry structures?
Definition
Fragmented, Emerging, Mature, Declining
Term
What are some opportunities in an fragmented industry?
Definition
Consolidation
Term
What are some opportunities in an emerging industry?
Definition

First Mover Advantages (technology, strategic resources, customer switching costs)

 

Term
What are some opportunities in a mature industry?
Definition
Refine current products, Emphasize service, Process Innovation.
Term
What are some opportunities in a declining industry?
Definition
Market Leadership, Market Niche, Harvest, Divestment
Term
What is the difference between harvest and divestment?
Definition

Divestment occurs quickly, soon after a pattern of decline has been established.

Harvest is a long, systematic, phased, withdrawal.

Term
What signs indicate a declining industry?
Definition
A absolute decline in unit sales over a sustained period of time.
Term
What signs indicate a mature industry?
Definition
Slowing growth in total industry demand, development of experienced repeat customers, a slowdown in increases in production capacity, slowdown in the introduction of new products or services, increase in international competition, overall reduction in the profitability of firms in the industry.
Term
What signs indicate a emerging industry?
Definition
Technological innovations, changes in demand, emergence of new needs, AND MORE!
Term
What signs indicate a fragmented industry?
Definition
A large number of small or medium sized firms operate and no small set of firms has dominant market share or creates dominant strategies.
Term
What are some examples of barriers to entry independent of scale?
Definition
Proprietary Technology, Managerial Know-How, Favorable Access to Raw Materials, Learning the Curve, and Government Policy.
Term
Explain the basics of the RBV model.
Definition
Resource Based View - The assets a firm has determines their capabilities. The capabilities enable a firm to take full advantage of its resources which determines competitive advantage.
Term
What are 4 types of resources?
Definition

Financial - what is used to conceive and implement strategies.

Physical Resources - materialism.

Individual Resources - The dimensions of individuals that brings value.

Organizational Resources - The bureacracy of the organization.

Term
What is the VRIO framework?
Definition
Value, Rarity, Imitation, Organization. How does a resource or capability fall on each of these dimensions? What does that say about long term competitive advantage derived from the resource or capability?
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