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MGMT 478 EXAM 1
MGMT 478 EXAM 1
31
Management
Undergraduate 4
05/24/2013

Additional Management Flashcards

 


 

Cards

Term

Define Vision: 

(Ch. 1)

Definition

A picture of what the firm wants to be and what the firm ultimately wants to achieve

Term

Define Mission: 

(Ch. 1)

Definition

Specifies the businesses in which the firm intends to compete and the customer it intends to serve

Term

Explain the Industrial Organization and Resource-Based models of above-average returns:

(Ch. 1)

Definition

Industrial Organization Model: External, find attractive industry and develop/acquire skills and assets needed to generate above-average returns

 

Resource-Based Model: Internal, identify firm's strengths, locate attractice industry that utilizes firm's resources 

Term

What are the 5 forces?

(Ch. 2)

Definition

Buyers

Rivalry

New Entrants

Suppliers

Substitutes

Term

Explain the difference between an attractive vs. an unattractive industry:

(Ch. 2)

Definition

Attractive: High Profit Potential

  • High Entry Barriers
  • Weak Suppliers/Buyers
  • Few substitutes
  • Moderate rivalry

Unattractive: Low Profit Potential

  • Low Entry Barriers
  • Strong Suppliers/Buyers
  • Strong substitutes
  • Intense rivalry
Term

What are Strategic Groups?

(Ch. 2)

Definition

A set of firms emphasizing similar dimensions and using similar strategies

 

Competition within > Competition among

Term

What is a Generic Strategy?

(Ch. 4)

Definition
A business-level strategy that is applicable to any organization in any industry
Term

What are 5 Generic Strategies?

(Ch. 4)

Definition
  1. Cost Leadership
  2. Focused Cost Leadership
  3. Differentiation
  4. Focused Differentiation
  5. Integrated Cost Leadership/Differentiation
Term

SWOT explains:

(Ch. 2)

Definition

Strengths

Weaknesses

Opportunities

Threats

Term

Explain what "fit" or "match" means:

(Ch. 2-3)

Definition
Fitting your organization's resources to its environment
Term

Explain the relationship between resources, capabilities and competencies:

(Ch. 3)

Definition

RESOURCES create CAPABILITIES for the firm that result in CORE COMPETENCIES that the firm capatilizes on in order to achieve above-average returns in an industry.

 

Core Competencies are your advantages that set you apart from other businesses.

 

Just because a firm is CAPABLE of doing something does NOT mean it is its strength, or it is the best at it; i.e. it is NOT a core competency.

Term

What are the 4 Criteria of Sustainable Competitive Advantage?

(Ch. 3)

Definition

Capabilities must filfill FOUR criteria in order to be CORE COMPETENCIES:

  1. Valuable
  2. Rare
  3. Costly to Imitate
  4. Nonsubstitutable
Term

Explain a Value Chain:

(Ch. 3)

Definition
Value Chains help us determine value-creating competencies and what should be done with them.
Term

What is a sustainable competitive advantage?

(Ch. 3)

Definition

Exists only when competitors cannot duplicate the benefits of a firm's strategy or, when they lack the resources to attempt the imitation.

Term

Review the Porsche Case!

(Ch. 3)

Definition
Term
What does it mean to have Cost Leadership?
Definition
Produce goods/services with acceptable features at the lowest costs relative to competitors, Efficiency strategy
Term
What is differentiation?
Definition

The firms product or service commands a premium price due to its differentiation as compared to competitors because customers perceive it as unique or special.

Term

What are some Value Chain activities?

(Ch. 3)

Definition

SCM-->Operations-->Distribution-->Marketing-->After Sales

Term

Explain a target market/focus:

(Ch. 4)

Definition

Developing goods to serve a particular competitive segment.

 

Market segmentation includes: demographic, geographic, psychological, etc.

Term

Explain the Cost Leadership strategy:

(Ch. 4)

Definition

A firm competes on efficiency: positions its product in an industry to still be valued, but place more value on the lower price. The product is more efficient, thus allowing a lower price.

Term

Broad Market = "  "

Narrow Market = "  "

Definition

Broad = "Industry-wide"

Narrow = "Niche"

Term
Explain the Integrated Cost Leadership/Diferentiation
Definition

A firm attmepts to provide great quality, uniqueness, and low cost. This strategy maximizes value for the firm by driving down costs while still being able to demand higher prices.

Term
Explain the "stuck in the Middle" idea:
Definition

You're neither a cost leader nor provide premium quality.

 

It's too risky to attempt a Integrated Cost Leadership/Differentiation strategy because products do not offer sufficient value in terms of either low cost or differntiation

Term

Risks associated with Differntiation Strategy:

(Ch. 4)

Definition
Price, value diminished, experience, counterfeit: See slide 29
Term

Risks associated with a Cost Leadership strategy:

(Ch. 4)

Definition
Obsolescence, Cost Reductions, Imitation: See slide 18
Term

Risks associated with a Focused Strategy:

(Ch. 4)

Definition
Outfocused, Competition, Changing Preferences: See slide 35
Term
See Chapter 5 Opening Case: Clayton Clausen, Technology
Definition
Term

Review Generic Strategies Risks Slides:

(Ch. 4)

Definition
Term
What is the Innovator's Dilemma?
Definition
Disruptive Innovation: an innovation that makes it so much simpler/affordable to own/use a product that a whole new population can have one.
Term
To what extent are firms competitors?
Definition

When two firms have high market commonality and high resrouce similarity.

 

Direct competition does NOT always mean intense rivalry.

Term
Define competitors:
Definition
firms operating in the same market offering similar products and targeting similar customers.
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