CHAPTER 4 Flashcards
A formal program of gathering information about a company’s competitors.
competitive intelligence
The companies that offer the same products or services as the subject company
competitors
A company or an industry whose product(s) works well with another industry’s or firm’s product and without
which that product would lose much of its value.
complementor
An industry in which a few large companies dominate.
consolidated industry
An obstruction that makes it difficult for a company to enter an industry
entry barrier
The monitoring, evaluation, and dissemination of information from the external and internal environments to key people within the corporation.
environmental scanning
The degree of complexity plus the degree of change existing in an organization’s external environment
environmental uncertainty
An obstruction that keeps a company from leaving an industry.
exit barrier
An industry in which no firm has large market share and
each firm serves only a small piece of the total market.
fragmented industry
An industry in which a company manufactures and sells the same products, with only minor adjustments for
individual countries around the world
global industry
An industry situation in which the frequency, boldness, and aggressiveness of dynamic movement by the players accelerates to create a condition of constant disequilibrium and change.
hypercompetition
A group of firms producing a similar product or service.
industry
An in-depth examination of key factors within a corporation’s task environment.
industry analysis
A chart that summarizes the key success factors within a particular industry
industry matrix
A forecasted description of an industry’s likely future.
industry scenario
A chart that ranks the probability of occurrence versus the probable impact on the corporation of developments in the external environment.
issues priority matrix
Variables that significantly affect the overall competitive position of a company within a particular industry
key success factor
An industry in which companies tailor their products to the specific needs of consumers in a particular
country
multidomestic industry
A company that has significant assets and activities
in multiple countries.
multinational corporation (MNC)
That part of the external environment that includes physical resources, wildlife, and climate that are an
inherent part of existence on Earth
natural environment
Businesses entering an industry that typically bring new capacity to an industry, a desire to gain market share, and substantial resources
new entrant
An industry in which
multinational corporations primarily coordinate their activities within specific geographic areas of the world
regional industry
Economic, technological, political-legal, and sociocultural environmental forces that do not directly touch on the short-run activities of an organization but
influence its long-run decisions
societal environment
An approach to scanning the societal environment that examines sociocultural, technological, economic, ecological, and political-legal forces. Also called PESTEL
analysis.
STEEP analysis
A set of business units or firms that pursue similar strategies and have similar resources.
strategic group
A category of firms based on a common strategic orientation and a combination of structure, culture, and processes that are consistent with that strategy
strategic type
Products that appear to be different but can satisfy the same need as other products.
substitute product
The part of the business environment that includes the elements or groups that directly affect the corporation
and, in turn, are affected by it.
task environment
factors affect multiple industries
Economic forces
Technological forces
Political–legal forces
Sociocultural forces
technological breakthroughs that are already having a significant impact on many industries
Portable information devices and electronic networking
Alternative energy sources
Precision farming
Virtual personal assistants
Genetically altered organisms
Smart, mobile robots
Eight current sociocultural trends
Increasing environmental awareness
Growing health consciousness
Expanding seniors market
Impact of Generation Y Boomlet
Declining mass market
Changing pace and location of life
Changing household composition:
Increasing diversity of workforce and markets:
possible barriers to entry are:
Economies of scale
Product differentiation
Capital requirements:
Switching costs
Access to distribution channels
Cost disadvantages independent of size
Government policy
four basic types on the basis of
their general strategic orientation
Defenders
Prospectors
Analyzers
Reactors
