Shared Flashcard Set

Details

Management 464 Test 2
Study Guide
52
Management
Undergraduate 4
03/29/2014

Additional Management Flashcards

 


 

Cards

Term

Distinctive Competences

Definition

A firm's competencies that are superior to those of competitors.

Term

VRIO Framework

Definition

Barney's proposed analysis to evaluate a firm's key resources in terms of value, rareness, imitability, and organization

Term

Durability

Definition

The rate at which a firm's underlying resources and capabilities depreciate or become obsolete.

Term

Imitability

Definition

The rate at which a firm's underlying resources and capabilities can be duplicated by others.

Term

Transparency

Definition

The speed with which other firms can understand the relationship of resources and capabilities supporting a successful firm's strategy.

Term

Transferability

Definition

The ability of competitors to gather the resources and capabilities necessary to support a competitive challenge.

Term

Replicability

Definition

The ability of competitors to duplicate resources and imitate another firm's success.

Term

Explicit Knowledge

Definition

Knowledge that can be easily articulated and communicated.

Term

Tacit Knowledge

Definition

Knowledge that is not easily communicated because it is deeply rooted in employee experience or in a corporation's culture.

Term

Business Model

Definition

The mix of activities a company performs to earn a profit

Term

Value Chain

Definition

A linked set of value creating activities that begins with basic raw materials coming from suppliers and ends with distributors getting the final goods into the hands of the ultimate consumer.

Term

Simple Structure

Definition

A structure for new entrepreneurial firms in which the employees tend to be generalists and jacks-of-all-trades.

Term

Functional Structure

Definition

An approach taken by a functional area to achieve corporate and business unit objectives and strategies by maximizing resource productivity. 

Term

 Divisonal Structure

Definition

An organizational structure in which employees tend to be functional specialists organized according to product/market distinctions. 

Term

Strategic Business Units (SBU)

Definition

A division or group of divisions composed of independent product-market segments that are given primary aurthority for the management of their own functions.

 

Term

Conglomerate Structure

Definition

An assemblage of legally independent firms (subsidiaries) operating under one corporate umbrella but controlled through the subsidiaries' boards of directors.

Term

Marketing Mix

Definition

The particular combination of key variables (product, place, promotion, and price) that can be used to affect demand and to gain competitive advantage.

Term

Financial Leverage

Definition

The ratio of total debt to total assets.

Term

Capital Budgeting 

Definition

The process of analyzing and ranking possible investments in terms of the additional outlays and additional receipts that will result from each investment.

Term

R&D Intensity

Definition

A company's spending on research and development as a percentage of sales revenue.

Term

Technology Transfer

Definition

The process of taking a new technology from the laboratory to the marketplace.

Term

Operating Leverage

Definition

The impact of a specific change in sales volume on net operating income.

Term

Propitious Niche

Definition

A portion of a market that is so well suited to a firm's internal and external environment that other corporations are not likely to challenge or dislodge it.

Term

TWOS Matrix

Definition

A matrix that illustrates how external opportunities and threats facing a particular company an be matched with that company's internal strengths and weaknesses to result in four sets of strategic alternatives.

Term

Business Strategy

Definition

Competitive and cooperative strategies that emphasize improvements of the competitive position of a corporation's products or services in a specific industry or market segment.

Term

Competitive Scope

Definition

The breadth of a company's or a business unit's target market.

Term

Competitive Strategy

Definition

A strategy that states how a company or a business unit will compete in an industry.

Term

Cooperative Strategies

Definition

Strategies that involve working with other firms to gain competitive advantage within an industry.

Term

Collusion

Definition

The active cooperation of firms within an industry to reduce output and raise prices in order to get around the normal economic law of supply and demand. This practice is usually illegal.

Term

Strategic Alliance

Definition

A partnership of two or more corporations or business units to achieve strategically significant objectives that are mutually beneficial.

Term

Mutual Services Consortium

Definition

A partnership of similar companies in similar industries that pool their resources to gain a benefit that is too expensive to develop alone.

Term

Joint Venture

Definition

An independent business entitiy created by two or more companies in a strategic alliance.

Term

Licensing Arrangement

Definition

An agreement in which the licensing firm grants rights to another firm in another country or market to produce and/or sell a branded product.

Term

Value-Chain Partnership

Definition

A strategic alliance in which one company or unit forms a long-term arrangement with a key supplier or distributor for mutual advantage.

Term

Corporate Strategy

Definition

A strategy that states a company's overall direction in terms of its general attitude toward growth and the management of its various business and product lines.

Term

Directional Strategies

Definition

A plan that is composed of three general orientations: Growth, Stability, and Retrenchment Strategies.

Term

Growth Strategies

Definition

A directional strategy that expands a company's current activities.

Term

Stability Strategies

Definition

Corporate strategies to make no change to the company's current direction or activities.

Term

Retrenchment Strategies

Definition

Corporate strategies to reduce a company's level of activities and to return it to profitability.

Term

Vertical Growth

Definition

A corporate growth strategy in which a firm takes over a function previously provided by a supplier or distributor.

Term

Vertical Integration

Definition

The degree to which a firm operates in multiple location on an industry's value chain from extracting raw materials to retailing.

Term

Backward Integration

Definition

Assuming a function previously provided by a supplier.

Term

Forward Integration

Definition

Assuming a function previously provided by a distributor.

Term

Full Vertical Integration

Definition

A growth strategy under which a firm makes 100% of its key suppliers internally and completely controls its distributors.

Term

Taper Integration

Definition

A type of vertical integration in which a firm internally produces les than half of its own requirements and buys the rest from the outside suppliers.

Term

Quasi-Integration

Definition

A type of vertial growth/integration in which a company does not make any of its key supplies but purchases most of its requirements from outside suppliers that are under its partial control.

Term

Horizontal Integration

Definition

The degree to which a firm operates in multiple geographic locations at the same point in an industry's value chain.

Term

BCG Matrix

Definition

A simple way to portray a corporation's portfolio of products or divisions in terms of growth and cash flow.

Term

Question Marks

Definition

New Products that have potential for success and need a lot of cash for development.

Example: After years of fruitlessly experimenting with an electric car, GM finally decided in 2006 to take a change in developing the Chevrolet Volt.

Term

Star

Definition

Market leader that is bale to generate enough cash to maintain its high market share.

Example: HP in the printer business

Term

Cash Cows

Definition

A product that brings in far more money than is needed to maintain its market share.

Example: VCR's to DVD's

Term

Dogs

Definition

Have low market share and do not have the potential (because they are in an unnatractive industry) to bring in much cash.

Example: IBM selling PC to China's Lenovo Group

Supporting users have an ad free experience!