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MGMT 466 > Chapter 2 reading > Flashcards

Chapter 2 reading Flashcards

1
Q

pepsico is more diversified than Coca-Cola due to its presence in the _____

A

food industry (frito lay)

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2
Q

assessing the influence of factors in the general environment is important for ____

A

planning for future success

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3
Q

_______ factors—like war and political unrest, variations in the strength of national economies, and new technologies—affect firm growth and profitability in the US and beyond.

A

External environmental

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4
Q

Understanding the external environment helps build the firm’s base of knowledge and information that can be used to:

A
  1. help build new capas/core comps
  2. buffer firm from neg environ impact
  3. pursue opps to better serve stkhldrs’ needs
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5
Q

The firm’s understanding of the external environment is matched with knowledge about its _____ (discussed in Chapter 3) to form its vision, to develop its mission, and to take strategic actions that result in strategic competitiveness and above-average returns

A

internal environment

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6
Q

firms cannot directly control the __________ segments and elements

A

general environment

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7
Q

The ______ is the set of factors that directly influence a firm and its competitive decisions and responses

A

industry environment

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8
Q

_______represents the firm’s understanding of its current competitors

A

competitor analysis

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9
Q

analysis of the ________ focuses on the future

A

general environment

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10
Q

_______ focuses on factors and conditions influencing firm profitability within its industry

A

industry analysis

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11
Q

_______ focuses on predicting the dynamics of rival’s actions, responses, and intentions

A

competitor analysis

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12
Q

________ is becoming an increasingly valuable source of data and information for analyzing the general environment

A

the internet

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13
Q

One strategy that firms can use to enhance their awareness of conditions in the external environment is to establish an analysis process involving…

A

scanning, monitoring, forecasting and assessing

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14
Q

_____entails the study of all segments in the general environment

A

scanning

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15
Q

Firms use the ____ process to either detect early warning signals regarding potential changes or to detect changes that are already underway

A

scanning

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16
Q

In most cases, information and data being collected or observed are ambiguous, incomplete, and appear to be unconnected

A

scanning

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17
Q

_______ is most important in highly volatile environments, and the system should fit the organizational context

A

Scanning

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18
Q

The Internet provides significant opportunities to obtain information. For example…

A

(scanning) Amazon.com records sign. info about visitors

also, websites get info using cookies

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19
Q

_____represents a process whereby analysts observe environmental changes over time to see if, in fact, an important trend begins to emerge

A

monitoring

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20
Q

The critical issue in _____ is that analysts be able to detect meaning from the data and information collected during the scanning process

A

monitoring

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21
Q

Effective ____ requires the firm to identify important stakeholders

A

monitoring

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22
Q

_________ can also provide information about successfully commercializing new technologies

A

scanning and monitoring

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23
Q

_______represents the process where analysts develop feasible projections of what might happen—and how quickly—as a result of the changes and trends detected through scanning and monitoring

A

forecasting

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24
Q

______represents the step in the external analysis process where all of the other steps come together

A

assessing

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25
Q

The objective of _____ is to determine the timing and significance of the effects of changes and trends in the environment on the strategic management of a firm

A

assessing

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26
Q

It is good to alert students to the fact that a major challenge for managers and firms engaging in the process of external analysis is to recognize ________ that may affect the analysis process

A

biases and assumptions

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27
Q

_______efforts should focus on segments most important to the firm’s strategic competitiveness to identify environmental changes, trends, opportunities, and threats that can be matched with the firm’s core competencies so that it can achieve strategic competitiveness and earn above-average returns

A

external analysis

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28
Q

the implications of changes and trends in the _____ segment may affect the political/legal segment both domestically and in other global markets.

A

economic

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29
Q

Important technology-related issues that might affect a broad variety of firms include:

A
  • Increasing plant automation
  • Internet technologies and their application to commerce and data gathering
  • Uses of wireless technology
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30
Q

This approach allows firms to build on and use their core competencies while limiting their risks within the niche market.

A

globalfocusing

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31
Q

Ecological, social, and economic systems interact to influence what happens in this segment.

A

physical environment segment

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32
Q

Global warming, energy consumption, and sustainability are all examples of issues related to the

A

physical environment segment

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33
Q

It should be noted that, unlike the general environment, which has an ____ effect on strategic competitiveness and firm profitability, the effect of the industry environment is more _____

A

indirect, direct

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34
Q

Example: • The transformation of the steel industry when mini-mills (such as Nucor and Birmingham Steel) entered the industry in competition with integrated domestic producers such as US Steel and Bethlehem Steel

A

threat of new entrants

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35
Q

example: • The impact of the increase in the number of cell phone providers on the cost of having a cell phone (and the long-range, potential impact on the cost of local telephone service)

A

threat of new entrants

36
Q

example: The increase in the number of Internet access providers and the effects of increased competition on such firms as CompuServe and America Online

A

threat of new entrants

37
Q

______ can be overcome as a potential entry barrier by firms that produce multiple customized products or that enter an industry on a large-enough scale

A

economies of scale

38
Q

manufacturing technology facilitated by advanced information systems has allowed the development of _____, and online ordering has enhanced the ability of customers to obtain customized products (often referred to as “______”).

A

mass customization, markets of one

39
Q

These are the one-time costs customers will incur when buying from a different supplier

A

switching costs

40
Q

______could take the form of announcements of anticipated future investments to increase capacity, new product plans, price-cutting or a study to assess the impact of lower prices

A

retaliation

41
Q

Small entrepreneurial firms can avoid retaliation by identifying and serving neglected market segments. For example,

A

Honda entered small engine motorcycle market to avoid harley

42
Q

Suppliers are powerful when firm profitability is reduced by ___

A

suppliers’ actions

43
Q

Armed with greater amounts of information about the manufacturer’s costs and the power of the Internet as a shopping and distribution alternative, consumers appear to be increasing their _____

A

power of buyers (bargaining power)

44
Q

______ those products that are capable of satisfying similar customer needs but come from outside the industry and thus have different characteristics

A

substitute products

45
Q

prices charged for substitute products represent the _______ on the prices that suppliers can charge for their products

A

upper limit

46
Q

examples of traditional and substitute products and their usage

A 
overnight deliver => fax/email
sugar=> nutrasweet
glass=> plastic containers
coffee=> tea
paper bags=>plastic bags (flexible packaging)
47
Q

action taken by one firm generally will result in retaliation by competitors (also known as _______)

A

competitive response

48
Q

how do our goals compare with out competitors’ goals?

A

Competitor analysis components: future objectives

49
Q

where will emphasis be placed in the future?

A

Competitor analysis components: future objectives

50
Q

what is the attitude toward risk?

A

Competitor analysis components: future objectives

51
Q

how are we currently competing?

A

Competitor analysis components: current strategy

52
Q

does their strategy support changes in the competitive structure?

A

Competitor analysis components: current strategy

53
Q

do we assume the future will be volatile?

A

Competitor analysis components: assumptions

54
Q

are we operating under a status quo?

A

Competitor analysis components: assumptions

55
Q

what assumptions do our competitors hold about the industry and themselves?

A

Competitor analysis components: assumptions

56
Q

what are our strengths and weaknesses?

A

Competitor analysis components: capabilities

57
Q

how do we rate compared to out competitors?

A

Competitor analysis components: capabilities

58
Q

What will our competitors do in the future?

A

Competitor analysis components: response

59
Q

where do we hold an advantage over our competitors?

A

Competitor analysis components: response

60
Q

how will this change our relationship with our competitors?

A

Competitor analysis components: response

61
Q

Industries with a high number of firms can be characterized by _____ when firms feel that they can make competitive moves that will go unnoticed by other firms in the industry.

A

intense rivalry

62
Q

Patterns of frequent actions and reactions often result in intense rivalry, such as in

A

local restaurant
retailing
dry cleaning

63
Q

_____also is intense in an industry that has only a few firms of equivalent resources and power

A

rivalry

64
Q

Battles for market share in the fast food industry between McDonald’s and Burger King; in the automobile industry between such firms as General Motors, Ford, and Toyota; and in athletic shoes between Nike and Reebok are examples of

A

intense rivalry between relatively equivalent competitors

65
Q

McDonald’s, Burger King, and Wendy’s. The intensity of competition can be illustrated by the various competitive strategies followed by firms in the fast-food industry:

A
  • Rapid and continuous introduction of new products and new packaging schemes
  • The introduction of innovative-pricing strategies
  • Product and/or service differentiation
66
Q

Products that are not characterized by brand loyalty or perceived uniqueness are generally viewed by buyers as

A

commodities

67
Q

assets whose value is linked to use in a particular industry or location, with little or no value as salvage or in other uses

A

specialized assets

68
Q

such as labor agreements or a requirement to repay federal, state, or local aid packages

A

fixed costs of exit

69
Q

interdependencies within the organization (e.g., shared facilities, market access)

A

strategic relationships

70
Q

such as loyalty to employees or fear for one’s own career

A

emotional barriers

71
Q

based on concern for job losses or the economic impact of exit

A

government and or social restrictions

72
Q

. Because of ______, international markets and rivalry must be included in the firm’s analyses

A

globalization

73
Q

In general, the stronger the competitive forces, the ____ the profit potential for an industry’s firms.

A

lower

74
Q

characteristics of attractive industries

A 
threat of new entry: low
bargaining power of suppliers: low
bargaining power of buyers: low
threat of substitute products: low
intensity of competitive rivalry: low

Unattractive industry: all high

75
Q

relationship between the strength of industry forces and prices/profits in the industry is ___

A

an inverse one

76
Q

When the forces are strong, prices/profits in the industry tend to be

A

low

77
Q

weak forces usually lead to

A

higher prices/profits

78
Q

Membership in a particular strategic group is determined by the essential characteristics of a firm’s strategy, which may include the

A
  • Extent of technological leadership
  • Degree of product quality
  • Pricing policies
  • Choice of distribution channels
  • Degree and type of customer service
79
Q

______concept can be useful in analyzing the competitive structure of an industry and can serve as a framework for assessing competition, positioning alternatives, and potential profitability of firms in an industry

A

the strategic group

80
Q

______ represents a necessary adjunct to performing an industry analysis

A

competitor analysis

81
Q

An ______ provides information regarding potential sources of competition

A

industry analysis

82
Q

a ______ enables the firm to focus its attention on those firms with which it will directly compete, and is especially important when a firm faces a few powerful competitors

A

structured competitor analysis

83
Q

______ is interested ultimately in developing a profile on how competitors might be expected to respond to a firm’s strategic moves

A

Competitor analysis

84
Q

_______ is critical to competitor analysis because it helps a firm understand competitors’ intentions and the strategic implications resulting from them

performed both for domestic and international competitors

A

competitor intelligence

85
Q

A major concern of many managers is the methods used to gather data on competitors, a process generally referred to as

A

competitor intelligence

MGMT 466 (12 decks)

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