Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

LESSONS FOR PRELIMS > CHAPTER 1 STRATBUS > Flashcards

CHAPTER 1 STRATBUS Flashcards

1
Q

When a firm successfully formulates and implements a value-creating strategy.

A

strategic competitiveness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

A __________is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.

A

strategy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

When a firm implements a strategy that its competitors are unable to duplicate or find too costly to try to imitate.

A

Competitive Advantage

note: firms must understand that no competitive advantage is permanent!!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Possessing a ________, and understanding how to use it effectively in marketplace competitions, is foundational to all firms’ efforts to achieve strategic competitiveness and outperform rivals in the process of doing so.

A

competitive advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

An investor’s uncertainty about the economic gains or losses that will result from a particular investment.

A

Risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Returns equal to those an investor expects to earn from other investments with a similar amount of risk.

A

Average Returns

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Returns in excess of what an investor expects to earn from other investments with a similar amount of risk.

A

Above-average Returns

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns

A

Strategic Management Process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

firms have a_________ when they deliver the same value to customers as competitors deliver but at a lower cost, or when they deliver benefits for which customers are willing to pay that exceed the benefits competitors offer.

A

competitive advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

With the information gained from_____ and ____analyses, the firm develops
its vision and mission and formulates one or more strategies

A

external and internal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

This model suggests that the external environment is the primary determinant of a firm’s strategic actions

A

Industrial Organization or I/O

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

According to this model, identifying and then operating effectively in an attractive (i.e., profitable) industry or segment of an industry are the keys to competitive success.

A

Industrial Organization or I/O Model

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

This model suggests that a firm’s unique resources and capabilities are the critical link to strategic competitiveness.

A

resource-based model

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

______is the process of converting something to digital form, is a new competitive dimension that is affecting competition in multiple industries throughout the world.

A

Digitalization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How many are the digital customers globally who are under 25 years of age?

A

2.5 Billion/ 2 and half Billion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

_____________is a condition where competitors engage in intense rivalry, markets
change quickly and often, and entry barriers are low. In these environments, firms find it
difficult to maintain a competitive advantage

A

Hypercompetition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

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 and/or geographic markets.

A

Hypercompetition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are the two primary drivers of hypercompetitive environments and the nature of today’s competitive landscape?

A

The emergence of a global economy and technology,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

________ is one in which goods, services, people, skills, and ideas move freely across geographic borders

> > Movement is relatively unfettered by artificial constraints.
Expansion into global arena complicates a firm’s competitive environment.
• Short-term: Where is the fastest growth likely to occur?
• Long-term: Where will sustainable growth occur?

A

global economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

In 2018 what country was the world’s largest economy at a value of $20.4 trillion?

A

United States

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

The_________ estimated that China and India’s economies would exceed the size of the U.S. economy by 2050 and that the economies of Germany, United Kingdom, and France would decline in size by this time as well.

A

World Economic Forum

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

_________is the increasing economic interdependence among countries and their organizations as reflected in the flow of products, financial capital, and knowledge across
country borders

A

Globalization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

________ is a product of a large number of firms competing against one another in an increasing number of global economies.

A

Globalization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

______increases the range of opportunities for companies competing in the current competitive landscape

A

Globalization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

_______has led to higher performance standards with respect to multiple competitive dimensions, including quality, cost, productivity, product introduction time, and operational efficiency

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

________ are a key source of competitive advantage

A

Employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

________is the term describing the risks of competing outside a firm’s domestic markets

A

Liability of foreignness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

the emergence of emerging-market __________ in international markets forces large MNCs based in developed markets to enrich their own capabilities to compete effectively in global markets

A

multinational corporations (MNCs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

________affects all aspects of how companies operate and as such, the strategies they choose to implement

A

technology

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

The speed at which new technologies become available

A

Technology Diffusion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Technologies that destroy the value of existing technology and create new markets

A

Disruptive Technologies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

The rapidity and consistency with which new, information-intensive technologies replace older ones

A

Perpetual Innovation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

_______are vital to firms’ efforts today to understand customers and their needs and to implement strategies in ways that satisfy those needs as well as the interests of all other
stakeholders.

A

Data and information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

The ability to effectively and efficiently access and use information has become an important source of competitive advantage.

Technology includes personal computers, cellular phones,
artificial intelligence, virtual reality, massive databases, electronic networks, internet trade.

A

The Information Age

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

___________ is the basis of technology and its application.

This is also a critical organizational resource and an increasingly valuable source of competitive advantage.

A

Knowledge (information, intelligence, and expertise)

Note: Individuals acquire knowledge through experience, observation, and inference

36
Q

___________ is a key intangible asset that when diffused quickly throughout a firm contributes to efforts to outperform rivals.

A

Knowledge

37
Q

__________ is a set of capabilities firms use to respond to various demands and opportunities existing in today’s dynamic and uncertain competitive environment.
It also involves coping with uncertainty and its accompanying risks

A

Strategic flexibility

38
Q

This is a slack resources that allow the firm flexibility to respond to environmental changes

A

Organizational slack

39
Q

The logic of the________ is that a set of industry characteristics, including economies of scale, barriers to market entry, diversification, product differentiation, the degree of concentration of firms in the industry, and market frictions, determine the profitability potential of an industry or a segment of it as well as the actions
firms should take to operate profitably.

A

I/O model

40
Q

Four underlying assumptions in Industrial Organization Model

A
  1. the external environment imposes pressures and constraints that determine the strategies that would result in above-average returns
  2. Most firms competing in an industry control similar strategically relevant resources and pursue similar strategies.
  3. Resources used to implement strategies are highly mobile across firms. - meaning that
    any resource differences that might develop between firms will be short-lived.
  4. Organizational decision makers are assumed to be rational and committed to acting in the firm’s best interests (profit maximizing).
41
Q

True or false
A firm is able to increase its performance only when it competes in the industry with the highest profit potential and learns how to use its resources to implement the strategy required by the industry’s structural characteristics

A

True

42
Q

Firms use the__________to identify the attractiveness of an industry

A

five forces model

43
Q

firms can earn above-average returns by producing either standardized products at costs below those of competitors

A

Cost Leadership Strategy

44
Q

Producing differentiated products for which customers are willing to pay a price premium

A

Differentiation Strategy

45
Q

the_______ suggests that firms earn above-average returns by studying the external environment effectively as the foundation for identifying an attractive industry and implementing an appropriate strategy in it.

A

I/O model

46
Q

Under I/O model of Above-average returns

1st: The external environment

Study the external environment, especially the industry environment:

A 
• Economies of scale
• Barriers to market entry
• Diversification
• Product differentiation
• Degree of concentration of
firms in the industry
47
Q

Under I/O model of Above-average returns

2nd: Attractive Industry

Locate an attractive industry with a high potential for above-average returns.

A

Attractive industry: One whose structural characteristics suggest above-average returns.

48
Q

Under I/O model of Above-average returns

3rd: Strategy Formulation
Identify the strategy called for by the attractive industry to earn above-average returns.

A

Strategy formulation: Selection of a strategy linked with above-average returns in a particular industry.

49
Q

Under I/O model of Above-average returns

4th: Assets and Skills

Develop or acquire assets and skills needed to implement the strategy

A

Assets and skills required to implement a chosen strategy

50
Q

Under I/O model of Above-average returns

5th: Strategy Implementation

Use the firm’s strengths (its developed or acquired assets and skills) to implement
the strategy.

A

Selection of strategic actions linked with effective implementation of the chosen strategy

51
Q

Under I/O model of Above-average returns

6th: Superior Returns

A

Earning of above-average

returns

52
Q

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

A

Resources

53
Q

3 categories of resources

A

physical, human, and organizational capital.

54
Q

A _________ is the capacity for a set of resources to perform a task or an activity in an integrative manner

A

capability

55
Q

__________ are capabilities that serve as a source of competitive advantage for a firm over its rivals.

A

Core competencies

56
Q

Core competencies are often visible in the form of _____________

A

organizational functions

57
Q

Capacity of an integrated set of resources to integratively perform
a task or activity

A

Capability

58
Q

Resources are______ when they allow a firm to take advantage of opportunities or neutralize threats in its external environment.

A

valuable

59
Q

Resources are ______when possessed by few, if any, current and potential competitors.

A

rare

60
Q

Resources are______ when other firms either cannot obtain them or are at a cost disadvantage in obtaining them compared with the firm that already possesses

A

costly to imitate

61
Q

Resources are ___________ when they have no structural equivalents

A

non-substitutable

62
Q

_________is a picture of what the firm wants to be and, in broad terms, what it wants to
achieve.

A

Vision

63
Q

vision statement articulates the ideal description of an organization
and gives shape to its intended future.

A
63
Q

_________articulates the ideal description of an organization and gives shape to its intended future.

A

vision statement

63
Q

, a vision statement articulates the ideal description of an organization
and gives shape to its intended future.

A
64
Q

A_________specifies the businesses in which the firm intends to compete and the customers it intends to serve.

A

mission

65
Q

True or false

Vision is more concrete than the firm’s mission.

A

False!!!

Mission is more concrete than the firm’s vision.

66
Q

_______ are the fruits of the firm’s efforts to achieve its vision and mission.

A

Above-average returns

67
Q

True or false

The probability of forming an effective mission decreases when employees have a strong sense of the ethical standards that guide their behaviors as they work to help the firm reach its vision

A

False

decreases- increases

68
Q

_________ are 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

A

Stakeholders

69
Q

This means that stakeholders possess different degrees of ability to influence an organization.

A

Unequal dependencies

70
Q

True or false

The more critical and valued a stakeholder’s participation, the greater a firm’s dependency on it

A

True

71
Q

Individuals and groups who have invested capital in a firm in the expectation of earning a positive return on their investments.

A

Shareholders

72
Q

They prefer that investors receive a minimum return on their investments.

They could have their interests maximized when the quality and reliability of a firm’s products are improved, but without high prices

A

Customers

73
Q

Who are the Capital Market Stakeholders?

A

• Shareholders
• Major suppliers of capital
(e.g., banks)

74
Q

Who are the Product Market Stakeholders?

A
  • Primary customers
  • Suppliers
  • Host communities
  • Unions
75
Q

Who are the Organizational Stakeholders?

A
  • Employees
  • Managers
  • Nonmanagers
76
Q

They seek loyal customers who are willing to pay the highest sustainable prices for the
products they receive.

A

Suppliers

77
Q

This refers to multiple levels of power and influence

A

polycentric

78
Q

They are are generally satisfied when a firm’s profit margin reflects at least a balance between the returns to capital market stakeholders (i.e., the returns lenders and shareholders will accept and retain their interests in the firm) and the returns in which they share.

A

product market stakeholders

79
Q

They want companies willing to be long-term employers and providers of tax revenues while minimizing demands on public support services

A

Host communities

80
Q

_______ want secure jobs and desirable working conditions

A

Union officials

81
Q

_______ Expect a dynamic, stimulating and rewarding work environment and are satisfied by a company that is growing and actively developing their skills

A

Employees

82
Q

_________ are people located in different parts of the firm who are using the strategic
management process to help the firm reach its vision and mission.

A

Strategic Leaders

83
Q

The complex set of ideologies, symbols, and core values that are shared
throughout the firm and that influence how the firm conducts business.

A

Organizational Culture

84
Q

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

A

Profit Pool

LESSONS FOR PRELIMS (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions