Term
|
Definition
| the rivalry between two companies that offer similar products and services, acknowledge each other as rivals, and act and react to each other’s strategic actions |
|
|
Term
|
Definition
| the positioning strategy of providing a product or service that is sufficiently different from competitors’ offerings that customers are willing to pay a premium price for it |
|
|
Term
|
Definition
| companies using an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of prospectors |
|
|
Term
|
Definition
| a strategy for reducing risk by buying a variety of items (stocks or, in the case of a corporation, types of businesses) so that the failure of one stock or one business does not doom the entire portfolio |
|
|
Term
|
Definition
| foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company |
|
|
Term
|
Definition
| providing greater value for customers than competitors can |
|
|
Term
| World Trade Organization (WTO) |
|
Definition
| the successor to GATT; the only international organization dealing with the global rules of trade between nations; its main function is to ensure that trade flows as smoothly, predictably, and freely as possible |
|
|
Term
|
Definition
| someone who lives and works outside his or her native country |
|
|
Term
|
Definition
| a cycle that begins with the birth of a new technology and ends when that technology reaches its limits and is replaced by a newer, substantially better technology |
|
|
Term
|
Definition
| a psychological state of effortlessness, in which you become completely absorbed in what you’re doing, and time seems to pass quickly |
|
|
Term
|
Definition
| a strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business |
|
|
Term
|
Definition
| a measure of the intensity of competitive behavior between companies in an industry |
|
|
Term
| sustainable competitive advantage |
|
Definition
| a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate |
|
|
Term
|
Definition
| a company with a large share of a slow-growing market |
|
|
Term
|
Definition
| a company with a small share of a fast-growing market |
|
|
Term
|
Definition
| government-imposed regulations that increase the cost and restrict the number of imported goods |
|
|
Term
|
Definition
| the risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business |
|
|
Term
|
Definition
| the relative cost of a standard set of goods and services in different countries |
|
|
Term
|
Definition
| new companies that are founded with an active global strategy and have sales, employees, and financing in different countries |
|
|
Term
|
Definition
| when a multinational company has offices, manufacturing plants, and distribution facilities in different countries and runs them all using the same rules, guidelines, policies, and procedures |
|
|
Term
|
Definition
| a regional trade agreement among the United States, Canada, and Mexico |
|
|
Term
|
Definition
| a collection of networked firms in which the manufacturer or marketer of a product or service, the franchisor, licenses the entire business to another person or organization, the franchisee |
|
|
Term
|
Definition
| creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures |
|
|
Term
| Bargaining power of suppliers |
|
Definition
| a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs |
|
|
Term
|
Definition
| companies using an adaptive strategy that seeks fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market |
|
|
Term
| Direct foreign investment |
|
Definition
| a method of investment in which a company builds a new business or buys an existing business in a foreign country |
|
|
Term
|
Definition
| supporting and reinforcing new changes so that they stick |
|
|
Term
| government import standards |
|
Definition
| a standard ostensibly established to protect the health and safety of citizens but, in reality, is often used to restrict imports |
|
|
Term
|
Definition
| the risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events |
|
|
Term
|
Definition
| a cycle of repetition in which a company tests a prototype of a new product or service, improves on that design, and then builds and tests the improved prototype |
|
|
Term
|
Definition
| getting the people affected by change to believe that change is needed |
|
|
Term
|
Definition
| what a company can make, do, or perform better than its competitors |
|
|
Term
| threat of substitute products or services |
|
Definition
| a measure of the ease with which customers can find substitutes for an industry’s products or services |
|
|
Term
|
Definition
| an agreement in which companies combine key resources, costs, risks, technology, and people |
|
|
Term
|
Definition
| a group of companies within an industry against which top managers compare, evaluate, and benchmark strategic threats and opportunities |
|
|
Term
|
Definition
| a strategy that focuses on improving the way in which the company sells the same products or services to the same customers |
|
|
Term
|
Definition
| the purchase of a company by another company |
|
|
Term
|
Definition
| the strategic actions taken after retrenchment to return to a growth strategy |
|
|
Term
| Union of South American Nations (UNASUR) |
|
Definition
| a regional trade agreement among Argentina, Brazil, Paraguay, Uruguay, Venezuela, Bolivia, Colombia, Ecuador, Peru, Guyana, Suriname, and Chile |
|
|
Term
| Strategic reference points |
|
Definition
| the strategic targets managers use to measure whether a firm has developed the core competencies it needs to achieve a sustainable competitive advantage |
|
|
Term
|
Definition
| the internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs |
|
|
Term
|
Definition
| the person formally in charge of guiding a change effort |
|
|
Term
|
Definition
| government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition |
|
|
Term
|
Definition
| areas in which tariff and nontariff barriers on trade between countries are reduced or eliminated |
|
|
Term
|
Definition
| change created quickly by focusing on the measurement and improvement of results |
|
|
Term
| compression approach to innovation |
|
Definition
| an approach to innovation which assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation |
|
|
Term
| Organizational development |
|
Definition
| a philosophy and collection of planned change interventions designed to improve an organization’s long-term health and performance |
|
|
Term
| Trans-Pacific Partnership (TPP) |
|
Definition
| a proposed regional trade agreement among Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam |
|
|
Term
|
Definition
| the degree to which two companies have overlapping products, services, or customers in multiple markets |
|
|
Term
| experiential approach to innovation |
|
Definition
| an approach to innovation that assumes a highly uncertain environment and uses intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding |
|
|
Term
|
Definition
| barriers nontax methods of increasing the cost or reducing the volume of imported goods |
|
|
Term
|
Definition
| a competitive countermove, prompted by a rival’s attack, to defend or improve a company’s market share or profit |
|
|
Term
|
Definition
| the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country |
|
|
Term
|
Definition
| a government’s use of trade barriers to shield domestic companies and their workers from foreign competition |
|
|
Term
|
Definition
| companies using an adaptive strategy aimed at defending strategic positions by seeking moderate, steady growth and by offering a limited range of high-quality products and services to a well-defined set of customers |
|
|
Term
|
Definition
| change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology |
|
|
Term
|
Definition
| competition between old and new technologies to establish a new technological standard or dominant design |
|
|
Term
|
Definition
| a classification assigned to imported products by government officials that affects the size of the tariff and the imposition of import quotas |
|
|
Term
|
Definition
| the inability of a company to competitively sell its products because it relies on old technology or a nondominant design |
|
|
Term
|
Definition
| a corporate strategy that addresses the question, “How should we compete in this industry?” |
|
|
Term
|
Definition
| patterns of innovation over time that can create sustainable competitive advantage |
|
|
Term
|
Definition
| the use of formal power and authority to force others to change |
|
|
Term
|
Definition
| a resource that is not controlled or possessed by many competing firms |
|
|
Term
|
Definition
| a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines |
|
|
Term
| Technological substitution |
|
Definition
| the purchase of new technologies to replace older ones |
|
|
Term
|
Definition
| the buying and selling of goods and services by people from different countries |
|
|
Term
|
Definition
| a direct tax on imported goods |
|
|
Term
|
Definition
| a regional trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States |
|
|
Term
|
Definition
| a large decrease in organizational performance that occurs when companies don’t anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival |
|
|
Term
|
Definition
| the positioning strategy of using cost leadership or differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment |
|
|
Term
|
Definition
| the process used to get workers and managers to change their behaviors and work practices |
|
|
Term
|
Definition
| a regional trade agreement among Australia, Canada, Chile, the People’s Republic of China, Hong Kong, Japan, Mexico, New Zealand, Papua New Guinea, Peru, Russia, South Korea, Taiwan, the United States, and all the members of ASEAN except Cambodia, Lao PDR, and Myanmar |
|
|
Term
|
Definition
| selling domestically produced products to customers in foreign countries |
|
|
Term
|
Definition
| a regional trade agreement among Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam |
|
|
Term
|
Definition
| a full-scale, working model that is being tested for design, function, and reliability |
|
|
Term
| voluntary export restraints |
|
Definition
| voluntarily imposed limits on the number or volume of products exported to a particular country |
|
|
Term
|
Definition
| a three-day meeting in which managers and employees from different levels and parts of an organization quickly generate and act on solutions to specific business problems |
|
|
Term
| technological discontinuity |
|
Definition
| the phase of an innovation stream in which a scientific advance or unique combination of existing technologies creates a significant breakthrough in performance or function |
|
|
Term
|
Definition
| a discrepancy between a company’s intended strategy and the strategic actions managers take when implementing that strategy |
|
|
Term
|
Definition
| a resource that allows companies to improve efficiency and effectiveness |
|
|
Term
| Maastricht Treaty of Europe |
|
Definition
| a regional trade agreement among most European countries |
|
|
Term
|
Definition
| a portfolio strategy developed by the Boston Consulting Group that categorizes a corporation’s businesses by growth rate and relative market share and helps managers decide how to invest corporate funds |
|
|
Term
| creative work environments |
|
Definition
| workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged |
|
|
Term
|
Definition
| the phase of a technology cycle characterized by technological substitution and design competition |
|
|
Term
|
Definition
| an agreement in which a domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce the licensor’s product, sell its service, or use its brand name in a specified foreign market |
|
|
Term
|
Definition
| a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry |
|
|
Term
|
Definition
| formal project review points used to assess progress and performance |
|
|
Term
|
Definition
| a corporate strategy that addresses the question, “How should we compete against a particular firm?” |
|
|
Term
|
Definition
| a competitive move designed to reduce a rival’s market share or profits |
|
|
Term
| Imperfectly imitable resources |
|
Definition
| a resource that is impossible or extremely costly or difficult for other firms to duplicate |
|
|
Term
|
Definition
| a limit on the number or volume of imported products |
|
|
Term
|
Definition
| opposition to change resulting from self-interest, misunderstanding and distrust, and a general intolerance for change |
|
|
Term
|
Definition
| a reluctance to change strategies or competitive practices that have been successful in the past |
|
|
Term
|
Definition
| an assessment of the strengths and weaknesses in an organization’s internal environment and the opportunities and threats in its external environment |
|
|
Term
|
Definition
| a company with a large share of a fast-growing market |
|
|
Term
|
Definition
| the extent to which a competitor has similar amounts and kinds of resources |
|
|
Term
|
Definition
| a company with a small share of a slow-growing market |
|
|
Term
|
Definition
| a strategy that focuses on turning around very poor company performance by shrinking the size or scope of the business |
|
|
Term
|
Definition
| the assets, capabilities, processes, employee time, information, and knowledge that an organization uses to improve its effectiveness and efficiency and create and sustain competitive advantage |
|
|
Term
| shadow-strategy task force |
|
Definition
| a committee within a company that analyzes the company’s own weaknesses to determine how competitors could exploit them for competitive advantage |
|
|
Term
|
Definition
| a strategic alliance in which two existing companies collaborate to form a third, independent company |
|
|
Term
|
Definition
| the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can, so that the firm can offer the product or service at the lowest price in the industry |
|
|
Term
|
Definition
| the overall organizational strategy that addresses the question, “What business or businesses are we in or should we be in?” |
|
|
Term
|
Definition
| the central companies in a strategic group |
|
|
Term
| General Agreement on Tariffs and Trade (GATT) |
|
Definition
| a worldwide trade agreement that reduced and eliminated tariffs, limited government subsidies, and established protections for intellectual property |
|
|
Term
| Bargaining power of buyers |
|
Definition
| a measure of the influence that customers have on a firm’s prices |
|
|
Term
|
Definition
| modifying rules, guidelines, policies, and procedures to adapt to differences in foreign customers, governments, and regulatory agencies |
|
|
Term
| Organizational innovation |
|
Definition
| the successful implementation of creative ideas in organizations |
|
|
Term
|
Definition
| the firms in a strategic group that follow strategies related to but somewhat different from those of the core firms |
|
|
Term
|
Definition
| the systematic comparison of different product designs or design iterations |
|
|
Term
| Tripartite Free Trade Agreement (TFTA) |
|
Definition
| a regional trade agreement among twenty-seven African countries |
|
|
Term
|
Definition
| a new technological design or process that becomes the accepted market standard |
|
|
Term
|
Definition
| forces that produce differences in the form, quality, or condition of an organization over time |
|
|
Term
| nonsubstitutable resources |
|
Definition
| a resource that produces value or competitive advantage and has no equivalent substitutes or replacements |
|
|
Term
| Multinational corporations |
|
Definition
| a corporation that owns businesses in two or more countries |
|
|
Term
| unrelated diversification |
|
Definition
| creating or acquiring companies in completely unrelated businesses |
|
|
Term
| S-curve pattern of innovation |
|
Definition
| a pattern of technological innovation characterized by slow initial progress, then rapid progress, and then slow progress again as a technology matures and reaches its limits |
|
|
Term
|
Definition
| forces that support the existing conditions in organizations |
|
|
Term
|
Definition
| work teams composed of people from different departments |
|
|
Term
|
Definition
| companies that do not follow a consistent adaptive strategy but instead react to changes in the external environment after they occur |
|
|
Term
|
Definition
| an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country |
|
|
Term
|
Definition
| the phase of a technology cycle in which companies innovate by lowering costs and improving the functioning and performance of the dominant technological design |
|
|
Term
|
Definition
| a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use |
|
|
