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Business Policy > Ch 1-4 Study guide > Flashcards

Ch 1-4 Study guide Flashcards

1
Q

Strategic planning model

A

SWOT analysis, formulation, implementation, exection & control

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2
Q

SWOT analysis

A

Internal strenghts and weaknesses, external oppurtunities and threats

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3
Q

formulation

A

mission, objectives, and strategy held up by organizational structure and policy guidelines

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4
Q

implementation

A

budgets, programs, procedures

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5
Q

execution and control

A

monitor feedback

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6
Q

critical success factor

A

strategic innovation

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7
Q

life cycle stages

A

introduction, growth, maturity, decline

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8
Q

introduction

A

R&D, tech change, attention to quality, design change, process change

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9
Q

growth

A

improve product, economies of scales, process improvement of distribution, value added, forecasting

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10
Q

maturity

A

focus on standardizing, efficiency, cost cuts, few changes, optimal capacity

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11
Q

decline

A

cost control, reduce capacity, cut products

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12
Q

how competitive forces shape strategy according to michael porter

A

by being aware of competitive forces, an organization can position itself to be less vulnerable to attack

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13
Q

innovation and oppurtunity according to joseph schumpter

A

all organizations must transform if they are to survive the natural process of creative destruction

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14
Q

Transformation, the recipe according to paul romer

A

inputs (labor, materials, capital, management) are transformed by the U.S. economic system into outputs (goods and services)

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15
Q

stakeholders

A

identify what are the interest, oppurtunities, and threats, social issues and concerns for internal and external stakeholders

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16
Q

internal stakeholders

A

employees, stockholders, managers

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17
Q

external stakeholders

A

customers, suppliers, partners, community, government

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18
Q

sustained competitive advantage

A

outperforming competitors or the industry average over a prolonged period of time

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19
Q

strategies

A

low cost, differentation, integration

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20
Q

low cost strategy

A

sell a comparale product for a lower price

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21
Q

ex of low cost strategy

A

southwest airlines strive to recruit best personnel available, have an innovative flight schedule, have strong customer support, and provide high pay for eomployees for a low cost

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22
Q

differentiation

A

products will sell better if they are different in a way that people can appreciate

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23
Q

ex of differentiation

A

RCA used its R&D strength and its organizational structure to market the color TV succesfully

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24
Q

Integration

A

combining low cost and differentiation

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25
Q

ex of integration

A

JetBlue works to successfully combine low cost and differentiation

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26
Q

black swan events

A

incidents that describe highly improbable but high impact events

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27
Q

ex of a black swan event

A

fall of the Berlin Wall that led to the collapse of the Soviet Union

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28
Q

Creative Destruction

A

efers to the incessant product and process innovation mechanism by which new production units replace outdated ones. It was coined by Joseph Schumpeter

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29
Q

strategy

A

set of goal directed actions a firm takes to gain and sustain superior performance relative to competitors

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30
Q

Porters 5 forces

A

Threat of new entrants, bargaining power of customers, threat of substitutes, bargaining power of suppliers, inustry competitive rivalry

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31
Q

competitive advantage

A

superior performance relative to other competitors in the same industry or the industry avverage

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32
Q

sustainable competitive advantage

A

maintain over a long period of time

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33
Q

strategy is not

A

a grandiose statement

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34
Q

organizational performance is determined by

A

industry and firm effects

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35
Q

industry effects

A

caused by the structure of the industry

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36
Q

firm effects

A

firm performance attriuted to the actions managers take

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37
Q

AFI framework

A

analyze, formulate, and implement

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38
Q

levels of strategy

A

business, corporate, and global

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39
Q

corporate strategy

A

concerns questions relating to where to compete

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40
Q

business strategy

A

concerns questions relationg to how to compete

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41
Q

global strategy

A

concerns how to implement business strategy

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42
Q

vision

A

aspiration of the firm that lays the foundation for its mission-“to”

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43
Q

mission

A

what an organization does, including products, services, and which markets “by”

44
Q

Top down

A

rational, top down process aiding in programming for future success ,information flows one way, top down,centralized deciison making

45
Q

bottom up

A

autonmous actions, serendipity, resource allocation process

46
Q

strategic leadership

A

the behaviors and styles of executives that influence others to achieve the organizations vision and mission

47
Q

variables to consider in strategic leadership

A

rate of environmental change, firm size, commitment of employees

48
Q

profit vision

A

succes measured by financial performance

49
Q

not for profit visions

A

ddifferent metric for successful performance, vision is aspirational, not solely financial

50
Q

customer oriented vision

A

allows firms to adapt to changing environments, defines a business in terms of providing solutions ot customer needs, more flexible.

51
Q

product oriented vision

A

defines a business in terms of a good ro service. force managers to take a myopic view. statements less flexible, flexibility needed to achieve competitive advatnage

52
Q

ex of a product oriented vision

A

U.S. locomotive industry. led to a change in leadership ebcause they didn’t focus on the next succes in the industry, just on the product

53
Q

ex of customer oriented vision

A

southwest airlines, happy employees=happy customers

54
Q

values

A

ethical standards/norms that govern the behavior of individuals in a firm.

55
Q

2 important functions of values

A
  1. form a foundation for firm’s vision and mission 2. serve as guardrails to keep company on track
56
Q

scenario planning

A

managers envision what if scenarios to anticipate plausible futures, takes place at corporate and business levels of strategy, addresses both optimistic and pessimistic futures

57
Q

economic factors

A

economy wide phenomena, affect firm strategy. growth rates, interest rates, levels of emploment, price stability, currency exchange rates.

58
Q

political environment

A

processes/actions of government that can influence the decisions and behaviors of firms

59
Q

legal environment

A

laws, mandates, regulations, ans court decisions-all of which can have a direct bearing on a firm’s profit potential

60
Q

sociocultural factors

A

capture cultures, norms, and values for society, are dynamic and differ from group to group

61
Q

demographc trends

A

capture population characteristics realted to age, gender, family size, sexual orientation, religion, and socioeconomic class

62
Q

technological factors

A

capture the application of knowledge to create new processes and products

63
Q

innovations in process technology

A

lean manufacturing, six sigma quality, biotechnology

64
Q

nanotechnology revolution

A

initial staes-major upheaval for several industries-medical devices to new age materials for earthquake resistant buildingd

65
Q

ecological factors

A

broad environmental issues

66
Q

ex of ecological factors

A

natural environment, global warming, sustainable economic growth,

67
Q

business and natural world are

A

interdependent and inextricably lnked

68
Q

managing realtionship between business and natural world

A

directly influences the continued existence of human societies and the orgnizations we create

69
Q

five forces in the airline industry

A

low entry barriers, powerful suppliers, powerful buyers, strong substitute threat, intense rivalry

70
Q

result of five forces in the airline industry

A

low overall industry profit potential, unattractive industry for investment

71
Q

the static five forces model cannot determine

A

the speed of change for an industry

72
Q

as consolidated industries tend to be ____ than fragmented ones, firms tend to change their industry strcture towards ____

A

more profitable, being more consolidates through horizaonal mergers and acquisitions

73
Q

industry convergence

A

a process whereby formerly unrelated industries begin to satisfy the same customer need

74
Q

ex of industry convergence

A

convergence of media industries due to technological progress in IT, telecommunications, and digital media

75
Q

firms in the same strategic group

A

follow a similar strategy

76
Q

strategic group differences identify

A

business elvel strategies

77
Q

direct competitors

A

same strategic group firms

78
Q

_____ rivalry exceeds ___ rivalry

A

intra group, inter group

79
Q

entry barriers

A

economis of scales, network effects, customer switching costs, capital requirements, advantages independent of size, credible threat of retalitaion

80
Q

powerful suppliers

A

can demand higher prices for their inputs, capture part of the economic value created

81
Q

signs if strong suppliers

A

industry is concentrated, dont depend heavily on incumbents industry, incumbent firms face high switching costs, products are differentiated, limited substitutes, have credible forward integration threats

82
Q

powerful buyers

A

can demand a lower price or higher product quality

83
Q

powerful buyers reduce industry profit potential

A

through price discounts (limite revenue), through incraesed quality/better service (higher costs), as they capture part of the economic value created

84
Q

threat of sustitutes

A

threat derivs from products/services fullfilling the needs of current customers from outsde hte industry

85
Q

powerful substitutes

A

proce performance:has an attractive trade off, the buyers swithcing cost is low

86
Q

competitive industry structure

A

captured by number ad size of industry competitors, pricing power possess by firms, products/services offered by firms, height of entry barriers

87
Q

mobility barriers

A

restricts movement bewtween groups (seperate one strategic group from another)

88
Q

airline industry strategic groups

A

hub and spoke group iwht international routes, point to point airline groups do not

89
Q

competitive advantage derives from core competiencies, which enable

A

differentation of products/services creating perceived value, or cost leadership, offering comparable value as lower cost

90
Q

nike core competencies

A

just do it, unlock human potential, anyone can be a hero

91
Q

PESTEL

A

Political, economic, sociocultural, technological, ecological, legal

92
Q

resource based view

A

resources are key to superior performance, if they exhibit VRIO attributs, they become building blocks for gaining/sustaining competitive advantage

93
Q

VRIO

A

valubale, rare, costly to imitate, irganized to caputre value of the resource

94
Q

competititve advatnge is more likely to develop from ___ rather than

A

intangible, tangbile resources

95
Q

tangible resources

A

labor, capital, land, buildings, plant, equipment, supplies

96
Q

intangible resources

A

culture, knowledge, brand equity, reputation, intellectual property

97
Q

intellectual propert

A

patents, copyrights, trademarks, trade secretes

98
Q

Isolation mechanisms, how to sustain a competitive advantage

A

better expectations of future values, path dependence, casual ambiguity, social complexity

99
Q

better expectation of future values

A

buy resources at a low cost, nike signing mega athletes early in career, highway expansion

100
Q

path dependence

A

current alternatives are limited by past decisions, geographic concentration of carpet industry

101
Q

casual ambiguity

A

cause of success or failure not apparent. why is apple so successful

102
Q

social complexity

A

two or more systems interact creating many possiblities. 3 = 3, 5 = 10

103
Q

value chain analysis

A

internal activities a firm engages in whe transforming inputs to outputs, each activity adds incremental valuea nd assocaited costs, helps assess what adds value and what does not

104
Q

primary activities

A

firm activities that add value directtly by transforming inputs into outputs as the firm moves a product or sevice horzontally along the internal value chaing

105
Q

support activities

A

firm activities that add value indiretly, but are necessary to sustain primary activities

Business Policy (3 decks)

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