Shared Flashcard Set

Details

Midterm
Chapters 1, 2, 3, 4, 5
72
Management
Undergraduate 4
03/09/2014

Additional Management Flashcards

 


 

Cards

Term

·         Strategic Competitiveness

Definition

o   Achieved when a firm successfully formulates and implements a value-creating strategy

Term

·         Strategy

Definition

o   An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage

Term

·         Competitive Advantage

Definition

o   What a firm achieves when it implements a strategy that creates superior value for customers and competitors are unable to duplicate or find too costly to try to imitate

Term

·         Above-Average Returns

Definition

o   Are returns in excess of what an investor expects to earn from other investments with a similar amount of risk

Term

·         Risk

Definition

o   Is an investor’s uncertainty about the economic gains or losses that will result from a particular investment

Term

·         Average Returns

Definition

o   Are returns equal to those an investor expects to earn from other investments with a similar amount of risk

Term

·         Strategic Management Process

Definition

o   Is the full set of commitment, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns

Term

·         Hypercompetition (pg. 7)

Definition

o   Used to capture the competitive landscape

o   Assumptions of market stability are replaced by notions of inherent instability and change

o   It results from the dynamics of strategic maneuvering among global and innovative combatants

o   It is a condition of rapidly escalating competition based on:

§  Price-quality positioning

§  Competition to create new know-how and establish first-mover advantage, and

§  Competition to protect or invade established product or geographic markets

o   Firms aggressively challenge competitors in hopes of improving their competitive position and performance

o   Factors that create hypercompetitive environments and influence the nature of current competitive landscape:

§  Emergence of a global economy and technology

·         Specifically rapid technological change (two primary drivers of hypercompetitive environments)

Term

·         Global Economy

Definition

o   One in which goods, services, people, skills, and ideas move freely across geographic borders

Term

·         Globalization (pg. 9)

Definition

o   The increasing economic interdependence among countries and their organizations as reflected in the flow of:

§  Goods and services

§  Financial capital, and

§  Knowledge across country borders

o   Product of a large number of firms competing against one another in an increasing number of global economies.

Term

·         Perpetual Innovation (pg. 10)

Definition

o   Used to describe how rapidly and consistently new, information-intensive technologies replace older ones.

o   The shorter the product life cycles resulting from rapid diffusions of new technologies place a competitive premium on being able to quickly introduce new, innovative goods and services into the marketplace

Term

·         Strategic Flexibility

Definition

o   Is a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment

Term

·         Resources

Definition

o   Are inputs into a firm’s production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers

Term

·         Capability

Definition

o   The capacity for a set of resources to perform a task or an activity in an integrative manner

Term

·         Core Competencies

Definition

o   Capabilities that serve as a source of competitive advantage for a firm over its rivals

Term

·         Vision

Definition

o   A picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve

Term

·         Mission

Definition

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

Term

·         Stakeholders

Definition

o   Are the individuals, groups, and organizations that can affect the firm’s vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm’s performance

Term

·         Strategic Leaders

Definition

o   People located in different areas and levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission

Term

·         Organizational Culture

Definition

o   Refers to the complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business

Term

·         Profit Pool

Definition

o   Entails the total profits earned in an industry at all points along the value chain

Term

·         General Environment

Definition

o   Is composed of dimensions in the broader society that influence an industry and the firms within it

Term

·         Industry Environment

Definition

o   The set of factors that directly influence a firm and its competitive actions and competitive responses:

§  The threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes, and the intensity of rivalry among competitors

Term

·         Opportunity

Definition

o   A condition in the general environment that if exploited effectively, helps a company achieve strategic competitiveness

Term

·         Threat

Definition

o   Is a condition in the general environment that may hinder a company’s efforts to achieve strategic competitiveness

Term

·         Demographic Segment

Definition

o   Concerned with a population’s size, age structure, geographic distribution, ethnic mix, and income distribution

Term

·         Economic Environment

Definition

o   Refers to the nature and direction of the economy in which a firm competes or may compete

Term

·         Political/Legal Segment

Definition

o   The arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local governmental agencies

Term

·         Sociocultural Segment

Definition

o   Concerned with a society’s attitudes and cultural values

Term

·         Technological Segment

Definition

o   Includes the institutions and activities involved with creating new knowledge and translating that knowledge into new outputs, products, processes, and materials

Term

·         Global Segment

Definition

o   Includes relevant new global markets, existing markets that are changing, important international political events, and critical cultural and institutional characteristics of global markets

Term

·         Physical Environment Segment

Definition

o   Refers to the potential and actual changes in the physical environment and business practices that are intended to positively respond to and deal with those changes

Term

·         Industry

Definition

o   A group of firms producing products that are close substitutes

Term

·         Strategic Group

Definition

o   A set of firms that emphasize similar strategic dimensions and use a similar strategy

Term

·         Competitor Intelligence

Definition

o   The set of data and information the firm gathers to better understand and better anticipate competitors’ objectives, strategies, assumptions, and capabilities

Term

·         Complementors

Definition

o   Companies or networks of companies that sell complementary goods or services that are compatible with the focal firm’s good or service

Term

·         A Global Mind-Set

Definition

o   The ability to analyze, understand, and manage an internal organization in ways that are not dependent on the assumptions of a single country, culture, or context

Term

·         Value

Definition

o   Measured by a product’s performance characteristics and its attributes for which customers are willing to pay

Term

·         Tangible Resources

Definition

o   Are assets that can be observed and quantified

Term

·         Intangible Resources

Definition

o   Included assets that are rooted deeply in the firm’s history, accumulate over time, and are relatively difficult for competitors to analyze and imitate

Term

·         Valuable Capabilities

Definition

o   Allow the firm to exploit opportunities or neutralize threats in its external environment

Term

·         Rare Capabilities

Definition

o   Capabilities that few, if any, competitors possess

Term

·         Costly-to-Imitate

Definition

o   Capabilities that other firms cannot easily develop

Term

·         Nonsubstitutable Capabilities

Definition

o   Capabilities that do not have strategic equivalents

Term

·         Value Chain Activities

Definition

o   Activities or tasks the firm completes in order to produce products and then sell, distribute, and service those products in ways that create value for customers

Term

·         Support Functions

Definition

o   Include the activities or tasks the firm completes in order to support the work being done to produce, sell, distribute, and service the products the firm is producing

Term

·         Outsourcing

Definition

o   The purchase of value-creating activity or a support function activity from an external supplier

Term

·         Business-Level Strategy               

Definition

o   An integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by explanting core competencies in specific product markets

Term

·         Market Segmentation

Definition

o   A process used to cluster people with similar needs into individual and identifiable groups

Term

·         The Cost Leadership Strategy

Definition

o   An integrated set of actions taken to produce goods or services with features that are acceptable to customers at the lowest costs, relative to that of competitors

Term

·         Differentiation Strategy

Definition

o   An integrated set of actions taken to produce goods or services (at an acceptable cost) that customers perceive as being different in ways that are important to them

Term

·         Focus Strategy

Definition

o   An integrated set of actions taken to produce goods or services that serve the needs of a particular competitive segment

Term

·         Integrated Cost Leadership/Differentiation Strategy

Definition

o   Involves engaging in primary value chain activities and support functions that allow a firm to simultaneously pursue low cost and differentiation

Term

·         Total Quality Management (TQM)

Definition

o   A managerial process that emphasizes an organization’s commitment to the customer and to continuous improvement of all processes through problem-solving approaches based on empowerment of employees

Term

·         Competitors

Definition

o   Firms operating in the same market, offering similar products, and targeting similar customers

Term

·         Competitive Rivalry

Definition

o   The ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position

Term

·         Competitive Behavior

Definition

o   The set of competitive actions and competitive response the firm takes to build or defend its competitive advantages and to improve its market position

Term

·         Multimarket Competition

Definition

o   Occurs when firms compete against each other in several product or geographic markets

Term

·         Competitive Dynamics

Definition

o   Refer to all competitive behaviors – that is, the total set of actions and responses taken by all firms competing within a market

Term

·         Market Commonality

Definition

o   Concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each

Term

·         Resource Similarity

Definition

o   The extent to which the firm’s tangible and intangible resources are comparable to a competitor’s in terms of both type and amount

Term

·         Competitive Action

Definition

o   A strategic or tactical action the firm takes to build or defend its competitive advantages or improve its market position

Term

·         Competitive Response

Definition

o   A strategic or tactical action the firm takes to counter the effects of a competitor’s competitive action

Term

·         Strategic Action or a “Strategic Response”

Definition

o   A market-based move that involves a significant commitment of organizational resources and is difficult to implement and reverse

Term

·         Tactical Action or a “Tactical Response”

Definition

o   A market-based move that is taken to fine-tune a strategy; it involves fewer resources and is relatively easy to implement and reverse

Term

·         First Mover

Definition

o   A firm that takes an initial competitive action in order to build or defend its competitive advantages or to improve its market position

Term

·         Second Mover

Definition

o   A firm that responds to the first mover’s competitive action, typically through imitation

Term

·         Late Mover

Definition

o   Is a firm that responds to a competitive action a significant amount of time after the first mover’s action and the second mover’s response

Term

·         Quality

Definition

o   Exists when the firm’s goods or services meet or exceed customers’ expectations

Term

·         Slow-Cycle Markets

Definition

o   Those in which the firm’s competitive advantages are shielded from imitation commonly for long periods of time and where imitation is costly

Term

·         Fast-Cycle Markets

Definition

o   Markets in which the firm’s capabilities that contribute to competitive advantages aren’t shielded from imitation and where imitation is often rapid and inexpensive

Term

·         Standard-Cycle Markets

Definition

o   Markets in which the firm’s competitive advantages are moderately shielded from imitation and where imitation is moderately costly

Supporting users have an ad free experience!